New Delhi: The government plans to introduce a Bill in Parliament this week to raise foreign direct investment (FDI) in the insurance sector to 100 per cent, aiming to achieve universal insurance coverage by 2047.
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, circulated to MPs ahead of its introduction, proposes to increase the FDI cap in insurance from the current 74 per cent to 100 per cent. Despite allowing full foreign ownership, the Bill mandates that one of the top officials—Chairman, Managing Director or CEO—must be an Indian citizen.
It also permits the merger of a non-insurance company with an insurance company.
The Union Cabinet cleared the Bill on Friday. The proposed amendments aim to boost sector growth, strengthen policyholder protection and improve ease of doing business.
The Bill also provides for a Policyholders’ Education and Protection Fund, enhances regulatory transparency and oversight, and sets the IRDAI leadership tenure at five years or up to 65 years of age.