Panel expediting report on insurance Bill draws Oppn flak

The select committee poring over the contentious insurance amendment Bill on Wednesday appeared to be fast-tracking proceedings with committee chairman Chandan Mitra deciding to finalise the draft report on Monday. This 'unilateral' decision led to loud protests from Opposition party members who wanted more time. While the extended deadline for submission of the report is December 12, it is believed that the chairman was keen to submit it before the deadline.

On Wednesday, the committee completed discussion on all the 111 clauses of the Bill. The report is likely to suggest two amendments - enhancing the minimum capital for health insurance companies from Rs 50 crore to Rs 100 crore and fresh shares should be issued while raising foreign equity from 26 to 49 per cent.

There was consensus among all members on these issues as well as on a mandatory clause that claims up to Rs 20,000 would be settled only after the report of the surveyor, which had been dropped in the Insurance amendment Bill, should be brought back.

While the Trinamool Congress had walked out of the meeting on Tuesday, Janata Dal (United) registered its opposition to the Bill and staged a walkout on Wednesday. These parties, along with the Left, are likely to present dissenting notes to the committee report.

The Communist Party of India (Marxist), which is opposed to the Bill, argued on Wednesday that there should be a provision for ensuring commission to insurance agents. It also argued that disinvestment of general insurance companies is tantamount to 'de-nationalisation'.

While the Congress is supporting the government on the insurance Bill, the government will also get support from the Biju Janata Dal, Shiromani Akali Dal and an independent member.

The Samajwadi Party continued to abstain from the proceedings for the second day on Wednesday, while the Bahujan Samaj Party's Satish Chandra Mishra made a brief appearance.

While Finance Minister Arun Jaitley has made it amply clear that the Bill needs to be passed within this session, the current impasse in the upper House where the Bill is pending at present (it had been referred to the select committee from here), could make things difficult for the government.