The time is ripe to analyse gaps in our legal or regulatory framework relating to FDI in insurance
Before 1999, the insurance sector in India was nationalized. No private sector or foreign insurance companies were allowed. In 1999, the insurance law was amended, opening the market to private firms as well as joint ventures with foreign partners. The amended law permitted foreign direct investment (FDI) only up to 26% in an Indian insurance company. An Indian insurance company is defined in the Act to include only those firms whose sole purpose is to carry on life insurance business or general insurance or reinsurance.