ns ran e in ndia     13.3
           This company was responsible to look after                      sector insurance companies to enter the
     the National Agriculture Insurance Scheme                             sector (the government did it in 1999
     (NAIS) which was launched in 1999. Since                              passing the IRDA Act).
     January 2016, the company is looking after the                   (ii) Restructuring the LIC and the GIC and
     newly launched PMFBY (Prime Minister Fasal                            cutting down the government’s holding
     Bima Yojana)3 which subsumed the existing agri-                       in them to 50 per cent (no follow up
     insurance schemes—the NAIS and the Modified                           still, but the private insurance companies
     NAIS (of 2010). Till the AICIL was not set up, the                    demanding it anxiously. The NDA
     agri-insurance responsibility of the government                       government had taken steps in this area,
     was being looked after by the General Insurance                       but the UPA government has no such
     Corporation (GIC).                                                    plans.) Late 2012, the government started
           AICIL is jointly promoted by public sector                      sale of the LIC shares but to public sector
     insurance companies and development financial                         undertakings—seen as a welcome move.
     institutions—majority shares owned by the GIC                   (iii) Delinking GIC and its four subsidiaries
     (35 per cent) and NABARD (30 per cent) while                          (which was done in 2000).
     the four public sector general insurance companies              (iv)  Discarding the system of licensing of
     own 8.75 per cent each in it.                                         surveyors by the controller of Insurance.
                                                                      (v)  Restructuring the Tariff Advisory
     Public sector insurAnce comPAnies                                     Committee.
     At present, there are 6 public sector insurance                 (vi)  Setting up a regulatory anthority for the
     companies in India. Out of it one deals in the                        insurance industry (the IRDA set up in
     life segment (LIC); four are involved in the                          2000).
     non-life (general) insurance segment; and one
     is the dedicated agri-insurer. Other than these              irDA
     companies, there is one re-insurance company, the            The Insurance Regulatory and Development
     GIC Re (wholly owned by the GoI).                            Authority (IRDA) was set up in 2000 (the Act
                                                                  was passed in 1999) with one chairman and five
        insurance reforms                                         members (two as full time and three as part-
     Under the process of economic reforms an                     time members) appointed and nominated by the
     Insurance Reforms Committee (IRC) was set up                 government. The authority is responsible for the
     in April 1993 under the chairmanship of the ex-              regulation, development and supervision of the
     RBI Governor R. N. Malhotra. The committee                   Indian insurance industry.
     handed over its report (January 1994) with the                    As per the latest Annual Report 2014–15
     following major suggestions:4                                of the IRDA, presently, there are 52 insurance
                                                                  companies in India of which 24 are involved in life
            (i) Decontrolling insurance sector, i.e.,
                                                                  insurance business while other 28 companies are
                  allowing Indian as well as foreign private
                                                                  involved in non-life (general) segment. Insurance
         3.    Ministry of Finance, Union Budget 2016–17 (New     industry of India is presently regulated under the
               Delhi: Government of India, 2016); and Ministry of Insurance Laws (Amendment) Act, 2015. The Act
               Finance, Economic Survey 2015-16 (New Delhi:
               Government of India, 2016).                        increased the permissible limit of foreign direct
         4.    R. N. Malhotra headed Insurance Reforms Committee, investment (FDI) from 26 to 49 per cent in the
               Government of India, N. Delhi, January 1994.       insurance business. The FDI up to 49 per cent is