Centre Tables Landmark Bill: Insurance FDI Cap to Rise to 100%

Inside the reform  
The Winter Session, scheduled from December 1 to 19, will see the tabling of 10 legislations, with this bill positioned as a major economic reform. Finance Minister Nirmala Sitharaman had earlier announced the proposal in her Budget speech, calling it part of new-generation financial sector reforms. The bill seeks amendments to the Insurance Act, 1938, the LIC Act, 1956, and the IRDA Act, 1999, enabling full foreign ownership in insurance companies.  

Notable updates  
• Insurance Laws (Amendment) Bill 2025 listed among 10 legislations for Winter Session  
• Proposal raises FDI cap in insurance from 74% to 100%  
• Amendments to Insurance Act, LIC Act, and IRDA Act included in the reform package  
• Aim: deepen insurance penetration, boost sector growth, and improve ease of doing business  
• Insurance sector has already attracted ₹82,000 crore in FDI to date  

Major takeaway  
If passed, the bill will mark a watershed moment for India’s insurance industry, opening doors to global capital, innovation, and competition while strengthening consumer access and financial security.  

Sources: Mint, Business Standard, Economic Times, Moneycontrol, The Hindu