Overview
- The Union Cabinet approved the Insurance Laws (Amendment) Bill, 2025 to allow full foreign ownership of insurers, moving the FDI cap from 74% to 100%.
- The bill is listed for the ongoing Winter Session, with introduction expected before the session ends on December 19, according to the Lok Sabha bulletin.
- Government proposals tied to the overhaul include a composite licence, lower paid‑up capital thresholds, and amendments to the Insurance Act, the LIC Act and the IRDAI Act, though some elements are still under examination.
- Officials say guardrails will require insurers to keep premium investments in India and the bill may be introduced under the title Sabka Bima Sabki Raksha, while the sector has drawn about ₹82,000 crore in FDI to date.
- Opposition parties and trade unions are preparing to challenge the move over control and policyholder risks, even as the government links the reform to improving competition and progressing toward ‘Insurance for All by 2047’; the Cabinet also advanced private participation in civil nuclear power via the SHANTI Bill.