Fdi Norms, Foreign Participation in an Indian Insurance Company

As per the current (Mar 06) FDI norms, foreign participation in an Indian insurance company is restricted to 26. 0% of its equity / ordinary share capital. The Union Budget for fiscal 2005 had recommended that the ceiling on foreign holding be increased to 49. 0%. The government approved the much-awaited comprehensive Insurance Bill that seeks to raise foreign direct investment (FDI) cap in private sector to 49 per cent from 26 per cent. abc 4JVGh 7596 Insurance Market in India: Past-Present-Future pic2 pyYXW 7596
FDI Cap 49% from 26%: Impact on Indian Insurance Industry A higher foreign direct investment (FDI) will unshackle the insurance industry and drive growth and long-term development enrich the business by bringing world-class business practices and processes expand distribution capabilities and deepen market penetration. Over US$ 2 billion of foreign capital could flow into the country if the Government were to pass the Insurance Amendment Bill that raises the FDI limit. Scene 1: Change in waive service tax on micro insurance products
The growth of the rural insurance industry necessitates a waiver of the service tax, which currently stands at 10. 3 per cent, including education cess. This tax is detrimental to the growth of the rural insurance industry and insensitive to the plight of rural populace which lacks quality healthcare and is vulnerable to numerous perils, including illness, accidental death and disability, loss of property due to theft or fire, agricultural losses, and disasters of both the natural and man-made varieties.

Rural insurance has an enormous potential for growth and a service tax waiver will make micro insurance products more affordable for the rural populace, and will drive pan-India penetration of this market. Scene 2: Revision on Service tax on small transactions There is an urgent need to increase the threshold for the levy of service tax on policies. The present notification exempts small transactions involving premium of less than Rs 50 (except motor insurance) from the ambit of service tax.
The threshold limit of Rs 50 which was fixed in 1994 needs urgent revision. Small transactions involving premium up to Rs 1,000 should be exempt from service tax which will benefit the under-privileged sections of our society. Insurance premium for covering small and medium enterprise risks should be exempt from service tax. For other insurance products, we would like a reduction in the service tax by at least 3-4 per cent. Scene 3: Exempting personal insurance from service tax
There is an overwhelming demand across all players in the industry that individual health insurance policies should be totally exempt from service tax. Exemption of health insurance from the service tax will make health cover affordable and accessible for the layman. Consequently, cheaper health insurance will increase its pan-India penetration. Additional IT exemption for householders’ policies and concessional IT rates will give a fillip to home insurance and will also reduce the burden on the government in the event of catastrophes. Scene 4: Exemption for profit on sale of investments
To encourage general insurance players to be active participants in capital markets, there is a requirement for specific exemption from income-tax on profit on sale of investments. The issue of admissibility of UPR (unexpired premium reserves) as per IRDA regulations rather than as per Insurance Act only, for IT deductions. The UPR is at present restricted to the extent of limits specified in rule 6E of the Income Tax rules due to which insurance companies need to pay tax beyond their profit disclosed in their audited accounts. Hence, the UPR created as per IRDA regulations should be allowed as per rule 6E.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with CheapNursingWriter
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Anthropology
excellent loved the services
Customer 452443, September 23rd, 2022
English 101
Very good job. I actually got an A
Customer 452443, September 25th, 2022
Business Studies
Thank you!
Customer 452451, November 27th, 2022
Anthropology
Excellent services will definitely come back
Customer 452441, September 23rd, 2022
Architecture, Building and Planning
The assignment was well written and the paper was delivered on time. I really enjoyed your services.
Customer 452441, September 23rd, 2022
Nursing
The paper was EXCELLENT. Thank you
Customer 452449, September 23rd, 2022
Business Studies
Job well done. Finish paper faster than expected. Thank you!
Customer 452451, October 3rd, 2022
Theology
Job well done and completed in a timely fashioned!
Customer 452451, November 18th, 2022
Psychology
Thanks a lot the paper was excellent
Customer 452453, October 26th, 2022
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat