Archive · 13 Dec 2025
Cabinet Approves 100% FDI in Insurance
The government has approved a new law that will allow foreign companies to own 100% of insurance companies in India.
This change is expected to bring more money into the country, make insurance companies compete more, and improve the services they offer.
The law will also make it easier for new companies to start and will ensure better rules for how they operate.
The government hopes this will help more people and businesses get insurance by 2047.
The changes include lowering the amount of money needed to start a company and giving more power to the board of the Life Insurance Corporation (LIC) to make decisions about opening new branches and hiring staff.
Union Cabinet approved 100% FDI in insurance companies, removing the previous 74% limit.
The Insurance Laws (Amendment) Bill 2025 will be introduced in Parliament on Monday (December 15).
The move aims to attract more foreign investment, increase competition, and improve customer benefits.
Amendments will be made to the Insurance Act, LIC Act, and IRDAI Act to simplify licensing and enhance governance.
Reforms are expected to strengthen policyholder protection, boost financial security, and support economic expansion and job creation.
- Who
- Union Cabinet, chaired by Prime Minister Narendra Modi
- What
- Approved Insurance Amendment Bill to raise FDI cap to 100%
- When
- Friday (December 12), to be introduced in Parliament on Monday (December 15)
- Where
- India
- Why
- To boost capital inflows, intensify competition, and improve services in the insurance sector
- FDI Cap
- 100%
- Cabinet Approval Date
- Friday (December 12)
- Parliament Introduction Date
- Monday (December 15)
- Key Acts to be Amended
- Insurance Act, LIC Act, IRDAI Act
- Expected Outcomes
- Increased foreign capital, intensified competition, improved services
- Government Vision
- Insurance for All by 2047
- Paid-up Capital Requirements
- Lowered
- Composite Licence Framework
- Created
Sources
Union Cabinet approves Insurance Amendment Bill; details to be disclosed shortly
Cabinet clears Insurance Amendment Bill; FDI cap set to rise to 100%: Report
Cabinet Clears 100% FDI in Insurance, Approves Major Sector Reforms
Cabinet gives go ahead to 100 pc FDI in insurance sector
Cabinet clears Insurance Amendment Bill, may be introduced in Parliament on Monday
Cabinet Clears 100% FDI in Insurance; Bill Expected in Parliament Monday
Insurance reforms will give global scale to industry, help designing of specialised products: Experts
Centre Approves 100 Per Cent FDI In Insurance Sector; Cabinet Clears Insurance Laws (Amendment) Bill 2025 For Parliament
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Cabinet approves Insurance Laws (Amendment) Bill and four others
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New Insurance Bill: What’s in & what’s left out?
