new delhi finance minister p chidambaram indicated on thursday that the government would introduce a legislation in the budget session of parliament to hike fdi cap in insurance sector to 49 from the existing 26 triggering fears of a fresh policy feud with the leftreacting to the suggestion left vowed to kill the latest attempt to relax the ceiling percentage seen as a big putoff for international majors in the sector it is likely to put up a stiff resistance with cpms prakash karat insisting that communists had not diluted opposition to such proposalsmedia reports suggest government has been preparing a bill on increasing fdi in insurance but left has not changed its stance we will oppose any increase in fdi cap in parliament he added that left was not consultedthe hint that the government was getting ready to have a go at resolving the policy jam over fdi cap in insurance came interestingly from the visiting british chancellor of exchequer gordon brown chidambaram indicated that a bill will be introduced in parliament next month to increase fdi limit in insurance to 49 from 26 he said after the launch of indiauk economic and financial dialoguebrown who also met the pm said that it was conveyed to him that companies with a unique structure like lloyds of london would be allowed to offer insurance services in india leading many to surmise that he had an assurance from chidambaram about a fresh initiative to allow more fdi in the insurance sectorforeign governments have vigorously lobbied the centre to prise open the 26 lid frank keating governor of iowa and president of american council of life insurers is also in india to take up the case of us insurance firms who want to do business here but are deterred by the low ceiling keating said the 26 cap was keeping us companies away