• 1998: Yashwant Sinha moots opening up insurance sector, creation of IRDA in NDA’s first budget.
• IRDA Bill goes to Standing Committee.
• Sinha moots 49 per cent foreign investment—26 FDI+23 FII
• 1999: Congress—post Antony Committee—forces cap of 26 per cent in IRDA Act.
• 2004: Congress comes to power.
P Chidambaram announces hiking FDI in insurance to 49 per cent.
• Left in UPA I and TMC and DMK (members of NDA that passed IRDA Act) in UPA II oppose it.
• 2005: Law Commission and IRDA back hike in foreign equity/ownership.
• 2008: Bill introduced in Rajya Sabha. 2009 Bill referred to Standing Committee of Finance.
• 2011: Standing Committee says “a greater role for foreign capital in insurance sector may not have the desired impact” and that “increased role of foreign capital may lead to the possibility of exposing the economy to vulnerabilities”. Chairman of Committee: Yashwant Sinha.
• December 2014: Congress and BJP agree to agree.
• March 2015: Jayant Sinha successfully pilots Insurance Laws Amendment Act.
• Foreign investment hiked to 49 per cent—26FDI + 23 FII—exactly as in the 1998 draft.
Think about it. It took a whole generation—from father to son—for this piece of reforms to come through.–from IE