Archive · 19 Dec 2025
Parliament Passes 100% FDI in Insurance Bill
The Indian Parliament has passed a new bill that allows foreign companies to own 100% of insurance companies in India.
This means more foreign investment can come into the insurance sector.
The Finance Minister said this will create more jobs and make insurance more accessible.
The Life Insurance Corporation (LIC) has been doing well, with more assets and better financial health.
The government says this will help more people get insurance, especially in rural areas.
Some politicians from the opposition are worried that this might hurt public insurance companies and not protect policyholders enough.
Experts believe this will make insurance cheaper and more available, and help the insurance industry grow.
LIC says the changes will help them reach more people and use technology better.
Parliament passed the 'Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025' allowing 100% FDI in insurance companies.
Finance Minister Nirmala Sitharaman assured that the bill will attract new insurers, create jobs, and expand the insurance ecosystem.
LIC's Total Asset Under Management (AUM) increased by 6.45% to Rs. 54.52 lakh crores in FY 2024-25, with an improved solvency margin of 2.11.
The bill reduces the net-owned fund requirements for re-insurance companies from Rs 5,000 crore to Rs 1,000 crore and expands the definition of intermediaries.
Opposition MPs criticized the bill, alleging it weakens accountability and prioritizes shareholders over policyholders.
- Who
- Indian Parliament, Finance Minister Nirmala Sitharaman, Opposition MPs, Insurance Experts, LIC
- What
- Passage of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025
- When
- Passed on Wednesday (Rajya Sabha) and Tuesday (Lok Sabha)
- Where
- Indian Parliament
- Why
- To allow 100% FDI in the insurance sector, attract new insurers, and expand the insurance ecosystem
- Bill Name
- Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025
- FDI Limit
- 100% (previously 74%)
- LIC AUM
- Rs. 54.52 lakh crores (FY 2024-25)
- LIC Solvency Margin
- 2.11 (improved from 1.98)
- LIC VNB
- Rs. 10,011 crores (FY 2024-25)
- Jan Suraksha Schemes Enrollment
- Over 81 crore
- Jan Suraksha Claims Settled
- Rs 23,440 crore
- Re-insurance Net-Owned Fund Requirement
- Reduced from Rs 5,000 crore to Rs 1,000 crore
Sources
Parliament Passes Bill Allowing 100% FDI In Insurance Sector
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