Foreign insurers will be allowed to buy up to 49% of Indian insurance companies if the Government passes the Insurance Bill this week, as widely expected.

It has taken 10 years for the Bill to pass, but Congress last week dropped opposition to increasing foreign ownership beyond 26%.

IAG holds 26% of SBI General Insurance Company in partnership with State Bank of India, and has an option to increase its stake if regulations change.

The Indian Government is undertaking wide-ranging economic reforms and wants to see the insurance market expand, to fuel economic growth.