Parliament Passes Sabka Bima Sabki Raksha Bill Allowing 100% FDI in Insurance

The Indian Parliament has passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, which will allow up to 100% Foreign Direct Investment in insurance companies. The legislation, which amends three existing Acts, aims to enhance insurance coverage, ease business operations, and strengthen regulatory governance to bolster the Indian insurance sector. The reforms introduce measures for capital augmentation and technological advancement whilst lowering the Net Owned Fund requirement for Foreign Reinsurance Branches. Additionally, a Policyholders’ Education and Protection Fund has been established to raise awareness about insurance benefits. The bill also enhances regulatory oversight by empowering the Insurance Regulatory and Development Authority of India (IRDAI) and implementing consultative regulation procedures.

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