Overview
- The government circulated the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025 to MPs after Union Cabinet approval, with introduction expected in the Winter Session.
- The Bill proposes lifting the foreign ownership cap for insurers to 100% while requiring that a chairman, managing director or CEO be an Indian citizen.
- IRDAI would gain stronger enforcement tools, including disgorgement of wrongful gains and more transparent rule-making, aligning aspects of oversight with SEBI-style supervision.
- Entry norms for foreign reinsurers would be eased by lowering net owned fund thresholds, and LIC would get greater operational flexibility such as opening new zonal offices without prior clearance.
- Consumer measures include a Policyholders’ Education and Protection Fund, as industry groups voice mixed reactions over excluded reforms like composite licences and minimum capital relief.