New Delhi, Dec 17 (PTI) Opposition MPs slammed a bill to raise FDI in the insurance sector to 100 per cent in the Rajya Sabha on Wednesday, calling it a colonial mindset and a threat to social security,
while BJP members termed it a social reform to serve people.
Participating in the debate on The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, John Brittas, CPI (M) from Kerala, said the BJP government, which always talks against gulami ki mansikta (colonial mindset), wants to allow 100 per cent foreign direct investment in the insurance sector, which itself reflects its colonial mindset.
"Isn't opening up the insurance sector 100 per cent Gulami ki Mansikta?" Brittas questioned.
Brittas, while speaking against the bill, said the government is wrong if it thinks that by allowing 100 per cent FDI, it can attract foreign investments in India.
He alleged that the rupee declining to 91 against a dollar shows the flight of capital from India.
Another Kerala MP, Haris Beeran from the IUML Party, said the bill aims to amend three major laws - the Insurance Act, the LIC Act and the IRDA Act.
"The government presents it as a modernisation effect to provide insurance for all by 2047 and ease business compliance. But, in reality, it acts as a threat to the state rights, social security and judicial accountability," Beeran said.
He alleged that the government has promoted monopoly or duopoly in various sectors, such as aviation, telecom, and petroleum, and its aim is to create cartelisation of foreign insurance companies so that insurance itself becomes problematic for the common person.
He further stated that the bill is a threat to federalism as it redefines insurance cooperative societies, which include societies registered under state laws.
"This actually contradicts various Supreme Court judgements," Beeran said.
He added that the bill makes a provision for an Indian CEO, but even if it happens, the real control will shift to a foreign company and private companies with 100 per cent foreign ownership will have no obligation to reserve jobs for SCs and STs, among others.
However, on the other hand, BJP MPs from various states strongly supported the bill, calling it an initiative to take the benefit of insurance to common and poor people of this country.
Manan Kumar Mishra, a BJP MP from Bihar, said the bill is a natural expansion of the BJP government's commitment to universal social security and insurance for all by 2047.
"It is a service-oriented bill and not a profit-oriented Bill," Mishra said.
Chhattisgarh BJP MP Devendra Pratap Singh hailed the Modi government initiatives, saying the government wants to give the benefit of development to everyone, as the bill will bring transparency and strengthen people's trust in the insurance system.
The bill shows the government's commitment to economic and social reforms, he added.
Highlighting that welfare and security coverage is the purpose of this bill, BJP MP from Assam, Bhubaneswar Kalita, said the government's aim is to become a developed nation by 2047 and insurance for all is the main objective of the bill.
While BJP MP from Manipur, Maharaja Sanajaoba Leishemba, said it will strengthen India's insurance sector. PTI JP JP MNK BAL
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