UPA to talk to Opposition on insurance reforms

Finance Minister P Chidambaram on Monday said the UPA government will hold consultations with opposition parties, including Bharatiya Janata Party (BJP), on its recent controversial decision to hike the cap in the insurance sector to 49 per cent.
 
"I expect a vigorous debate on the issue," Chidambaram said when asked whether he plans to muster support for recent decisions that involved legislation.
 
"There is a difference of opinion (on the issue of 49 per cent FDI in insurance). I intend to meet with the leaders of opposition and convince them. I can convince the opposition parties that this clause (of raising the FDI cap) can be kept,"Chidambaram said addressing journalists attending the Economic Editors' Conference.
 
The minister said that he was convinced that the two amendment bills crucial for the economy bills will be passed by Parliament and sought media's cooperation in this regard.
 
On the Insurance Bill amendment cleared by Cabinet, he said, the government had accepted a vast majority of recommendations of the Standing Committee on Finance which, however, suggested that the FDI cap be retained at 26 per cent.
 
After consulting Insurance Regulatory and Development Authority (IRDA) and market players, the government has come to the conclusion to raise it to 49 per cent.
 
"So there is a difference of opinion on that. I would have to do my best to convince the principal opposition party as well as the other opposition parties that it is in the best interest of the insurance industry and the people of the country that we must raise the FDI cap from 26 to 49 per cent.
 
Currently, penetration of life insurance in India is mere 4.4 per cent and while that of non-life insurance is less than one per cent of population.
 
"I intend to do just that. I intend to meet the leaders of the opposition and convince them. I am confident that I can," he said.
 
Acknowledging opposition to policies is legitimate, finance minister said obstructionism is not.
 
"Whether the policies are right or wrong and whether the polices have brought benefit to the people are matters on which people alone can pass a judgement. Under our system there is a judgement day for every government at the end of five years", he added.
         
 

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