Overview
- The finance minister said she hopes to introduce the Insurance Amendment Bill in the Winter Session, which typically begins in late November.
- The proposal raises the foreign ownership cap in insurers from 74% to 100% with eligibility linked to reinvesting the entire premium pool in India and a review of existing guardrails.
- The legislative package covers changes to the Insurance Act, the LIC Act and the IRDAI Act to enable simpler entry norms and sector oversight.
- Companion measures include lower paid‑up capital requirements, a provision for a composite licence, and greater operational authority for the LIC board on matters such as branch expansion and recruitment.
- The government cited about Rs 82,000 crore in cumulative FDI in insurance and noted prior cap hikes in 2015 and 2021, while also announcing GST rate changes advancing to September 22 with most 12%‑rated goods moving to 5%.