Parliament has passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, bringing significant reforms to India’s insurance sector, including permitting 100% foreign direct investment in insurance companies.
The Bill amends the Insurance Act, 1938, the Life Insurance Corporation Act, 1956, and the IRDAI Act, 1999.
It raises the FDI cap from 74% to 100%, lowers the net-owned fund requirement for foreign reinsurers, eases norms for transfer of shares, and removes the minimum paid-up capital requirement for insurance cooperative societies.
The amendments also enhance the regulatory powers of the IRDAI and provide for the creation of a Policyholders’ Education and Protection Fund.