New Delhi: The government Friday approved the much-awaited comprehensive insurance bill, which seeks to raise foreign direct investment cap in private sector to 49% from 26%, and said it would be tabled in the Parliament in December.

“The Union Cabinet gave its approval for introduction of the Insurance (Amendment) Bill, 2008 for amendment to Insurance Act 1938, General Insurance Business Act, 1972, and Insurance Regulatory and Development Act, 1999, in the Rajya Sabha on the basis of recommendations made by GoM,” Finance Minister P Chidambaram told reporters.

However, the Bill is unlikely to be passed in this Parliament mainly due to lack of time, Chidambaram said while briefing on decision taken in the Cabinet Thursday night.

The amendments, he said, will remove archaic and redundant provisions in the legislations and would incorporate certain provisions to provide IRDA with flexibility to discharge its functions effectively and efficiently.

The Cabinet also decided to introduce the Life Insurance Corporation (Amendment) Bill, 2008 in the Lok Sabha, he said.