Government Set To Introduce Bill To Allow 100% FDI In Insurance Sector

The Union government is set to introduce a Bill in Parliament to increase FDI in the insurance sector from 74 per cent to 100 per cent, following approval by the Union Cabinet.

The proposed Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 seeks to amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956, and the Insurance Regulatory and Development Authority Act, 1999.

The Bill aims to accelerate growth of the insurance sector, improve protection of policyholders, and support the goal of “Insurance for All by 2047.”

It retains the requirement that one key managerial position must be held by an Indian citizen and provides for the establishment of a Policyholders’ Education and Protection Fund.