Insurance Laws (Amendment) Bill, 2015

• increased the permitted limit for foreign holdings in Insurance company from 26% to 49%.
• allows entry of foreign re-insurers (companies that insure insurance companies).
• provides for permanent registration of insurance companies.
• permits the holder of a life insurance policy to name the beneficiary.
• allows for nationalised general insurance companies to raise funds from the capital markets.
• Minimum capital = 100 Cr. for Life/ General Insurance Companies/ Co-operatives. Minimum Capital = 50 Cr. for Health Insurance. 
• Life insurance policy can not be challenged by insurer after a period of 5 year for any reason. 
• Fine = 25 Cr. for Insurers who fail to meet obligations in third party motor insurance, or policies for rural, social or vulnerable section of society. 
• provides for appeal against decisions of Insurance Regulatory and Development Authority (IRDA) to liw with the Securities Appellate  Tribunal set up under the SEBI Act, 1992.

Issues

• Lloyd's of London to be included in the definition of foreign company. Unclear whether it will be able to operate in India. 
• IRDA Act of 1999, required Indian promoters in insurance company to reduce their holding to 26% over a period of ten years. This requirement is not required now. 
• Law commission had suggested the merger of key provisions of the IRDA act with the Insurance Act. This is not implemented.