Parliament Passes Sabka Bima Sabki Raksha Bill To Reform Insurance Laws

Parliament has passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, introducing wide-ranging statutory reforms to India’s insurance framework.

The Bill amends key insurance legislations to permit up to 100% foreign direct investment, subject to regulatory conditions, and strengthens the statutory powers of the Insurance Regulatory and Development Authority of India.

It empowers the regulator to oversee governance standards, sales practices, and expenses of management, while introducing a stronger enforcement and penalty regime. The amendments also simplify capital and structural requirements for insurers and reinsurers and enhance statutory protection for policyholders.

The law will come into force on dates to be notified after Presidential assent.