24/03/2015
Proud to have participated in the Insurance Bill debate in Parliament last week & help pass the historic legislation! The Insurance Bill is the first significant economic legislation by the NDA Government that will benefit 800 million uninsured , boost the insurance sector & positively impact insurance consumers in particular and in general. The Bill will increase competition which makes way for consumers to get easy access to affordable Insurance! Read & share this post with fellow citizens if you are concerned about the Indian Economy.
To know more about the impact of this Bill & how it will benefit the Indian consumer, read my article in Mail Today http://bit.ly/1bbupVT & view my speech in Parliament: http://bit.ly/1NZlJB0
In my speech, I highlighted that Insurance pe*******on in is at 3.9%; the world average is at 6.3%, as per 2013 figures and we rank at a low 17 out of 62 nations. This means that over 800 million Indians have uninsured lives. Life, health, livelihood, and assets remain uncovered by Insurance which can be addressed by creating the space to increase the number of insurance companies and investment in this sector.
To the sceptics of FDI in Insurance, I pointed out that the heart of this legislation and the increase of FDI in insurance is one particular person — the Indian citizen and Insurance consumer. FDI in Insurance is important because like any other economy, we have a finite set of resources and these need to be prioritised. We need our domestic resources to go to places where private capital rarely does – the social sector, the anti-poverty schemes, rural infrastructure etc. We need to raise additional resources from external sources, it is good economics and politics to do so. High insurance densities have huge impacts on societal well-being, health, family standards of living one end of the spectrum of benefits – It also creates an economy of high savings rates, improved long term capital availability to the financial sector which in turn makes long term infrastructure financing easier.
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The INSURANCE BILL is pro-competition & pro-consumer. It is pro-investment & pro-economy, is a reformist legislation that will catalyse the insurance sector & the economy!
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Arun Jaitley; PMO India; Narendra Modi; Rajya Sabha; Rajya Sabha Television
