INDUSTRY
Insurance Amendment Bill permitting 100% FDI likely in winter session
- IBJ Bureau
- Sep 15, 2025
Insurance Amendment Bill, which proposes 100 per cent foreign direct investment (FDI) in the insurance sector, is likely to be introduced in the Parliament in the upcoming winter session, Finance Minister Nirmala Sitharaman has said.
The winter session of Parliament generally commences in the second half of November and concludes before Christmas.
“I hope to”, she has told the PTI when asked if the bill to further liberalise FDI in the insurance sector can be introduced in the Parliament in the upcoming winter session.
In this year’s Budget speech, the finance minister had proposed to raise the FDI limit to 100 per cent from the existing 74 per cent in the insurance sector as a part of new-generation financial sector reforms.
“This enhanced limit will be available for those companies which invest the entire premium in India. The current guardrails and conditions associated with foreign investment will be reviewed and simplified,” she had said.
So far, the insurance sector has attracted Rs 82,000 crore through FDI.
The Finance Ministry has proposed to amend various provisions of the Insurance Act, 1938, including raising FDI in the insurance sector to 100 per cent, a reduction in paid-up capital and a provision for a composite licence.
As a part of a comprehensive legislative exercise, the Life Insurance Corporation Act, 1956, and the Insurance Regulatory and Development Authority Act, 1999, will be amended, alongside the Insurance Act, 1938.
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