The Lok Sabha, on August 2, passed a Bill that would allow the government to reduce its shareholding in state-owned general insurance companies. Finance Minister Nirmala Sitharaman introduced the bill which amends the General Insurance Business (Nationalisation) Act, 1972 in the Lok Sabha on July 30.

The law says that the central government will hold not less than 51 per cent of the equity capital in a general insurer and the Centre has introduced an amendment to drop this provision.

What does this amendment mean for the four PSUs? What does this mean for the sector and finally how does this impact you? K Nithya Kalyani, an independent insurance sector expert, joins us in the latest episode of News Explained to help us understand the issue better.

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