New Delhi [India], December 16 (ANI): The Lok Sabha on Tuesday passed the ‘Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025’, aimed at strengthening policyholder protection, accelerating growth in the insurance sector, and raising the Foreign Direct Investment (FDI) limit in the sector from 74 per cent to 100 per cent.
The Bill proposes amendments to key legislations, including the Insurance Act, 1938, the Life Insurance Corporation Act, 1956, and the Insurance Regulatory and Development Authority of India (IRDAI) Act, 1999.
Replying to the debate on the Bill, Finance Minister Nirmala Sitharaman emphasised the government’s focus on robust regulatory oversight. She noted that the amendments are aligned with the vision of achieving ‘Insurance for All by 2047’ and aim to improve ease of doing business in the sector.
“We want the regulator also to be more robust and have taken measures around this in the amendment Bill, ranging from better regulatory oversight, ease of compliance, and uninterrupted services by insurance intermediaries,” Sitharaman said.
The Finance Minister added that intermediaries and insurance companies will follow a more standardised approach, requiring stakeholder consultation before introducing any policy. She also stated that all insurance companies and intermediaries must include the word “insurance” in their name for greater clarity for customers.
Under the new framework, the Bill introduces suspension of intermediary licenses instead of direct cancellations, providing time for compliance and allowing intermediaries to streamline operations and enhance transparency.
Raising the FDI limit to 100 per cent is intended to attract stable, long-term foreign capital, facilitate technology transfer, and expand insurance penetration and social security coverage across India. Opposition parties strongly opposed the Bill during the debate.
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