1. INTRODUCTION
The highly anticipated Sabka Bima Sabki Raksha (Amendment of
Insurance Laws) Bill, 2025 (Insurance Bill), seeking to allow 100%
foreign investment in the insurance sector, was recently passed by
the Parliament. The Insurance Bill makes various amendments to the
Insurance Act, 1938 (Insurance Act), the Life Insurance Corporation
Act, 1956 and the Insurance Regulatory and Development Authority
Act, 1999. While the Insurance Bill has been passed by the
Parliament, it will only become effective upon receiving
Presidential assent and being notified in the official gazette.
These changes have been made with the primary objective of
accelerating the growth and development of the insurance sector,
ensuring better protection of policyholders and improving ease of
doing business for insurance companies, intermediaries and other
stakeholders.
