August 12, 2014
Derek O’Brien speaks during Question Hour regarding FDI in Insurance | Transcript
Say, an American or a Mauritius insurance company with the lot of capital decides to come to India through the FDI route. When we look at that from a company level the point of view it may seem like the capital is enough. But, Sir, in Lehman kind of event, or AIG kind of crash, the US Government would seize all the capital of the existing American companies. They don’t need to take on the global risk policies holders across the world.
My question, Sir, is that will the minister care to clarify on explain how the foreign company without dedicated operations in India ensure that if something goes wrong like Lehman or AIG – where 80 billion dollars had to be given by the US Government to AIG – that the capital of the Indian Company will be available to take care of those who have insured in India.
I hope the minister will answer. Thank you.
