New Delhi, Dec. 16 -- The Lok Sabha passed an amendment bill on Tuesday to raise foreign direct investment (FDI) limit in India's insurance sector to 100% from 74% earlier, in a move that is likely to boost competition and spur capital inflows.

Of the 70 insurance companies operating in India, only 40 has foreign investments, with 10 of them having FDI of less than 26%, finance minister Nirmala Sitharaman said in Lok Sabha. As many as 23 insurers have FDI between 26% and 49%, three between 49% and 74% and four have 74%.

"100% in the sector will allow global insurance companies to inject substantial capital into their entities without waiting for domestic partners to make matching contribution under a joint-venture set up," she said.

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