Overview
- Union Cabinet and CCEA approved the Insurance Laws (Amendment) Bill, 2025, listed for the Winter Session and expected to be introduced as early as Monday as Sabka Bima Sabki Raksha.
- The bill lifts the cap from 74% to 100% FDI, with the enhanced limit available only to companies that invest the entire premium collected within India.
- The package rewrites the Insurance Act, 1938, the LIC Act, 1956, and the IRDAI Act, 1999, and proposes composite licences and reduced paid-up capital norms, along with greater operational leeway for LIC’s board.
- Officials say the reforms aim to deepen insurance penetration and support financing needs, with penetration at about 3.7% of GDP in 2023–24 and cumulative FDI inflows near Rs 82,000 crore.
- Opposition parties and trade unions are preparing to challenge full foreign ownership, even as industry voices highlight prospects for fresh capital, stronger competition and product innovation.