Big news on 100% FDI in Insurance Sector, Insurance Amendment Bill may be introduced in the monsoon session of Parliament

According to sources, the Insurance Amendment Bill, which proposes 100 percent FDI (FDI) in the insurance sector, can be introduced in Parliament in the upcoming monsoon session. Sources said that the draft bill has been prepared and will soon be presented for the approval of the cabinet. After getting approval from the cabinet, the Department of Financial Services (DFS) under the Finance Ministry will start the process of introducing the bill in Parliament. The government aims to introduce this bill in the monsoon session of Parliament starting in July. The budget was announced in the budget, in this year’s budget speech, Finance Minister Nirmala Sitharaman proposed to increase the foreign investment limit in the insurance sector from 74 percent to 100 percent. He had said, “This increased limit will be available to companies that will invest the entire premium in India. Reviewing the current terms and conditions related to foreign investment will be simplified.” Several important amendments have been proposed by the Ministry of Finance, the Ministry of Finance, has proposed several amendments to the Insurance Act, 1938, including increasing the FDI limit, reduction in paid-up capital and composite license. The bill also proposes to allow insurance agents to sell products from more than one insurance companies, which will eliminate the existing exclusive model. ALSO READ: Large jump of Reliance Retail: Increase in the number of orders by 2.4 times, LIC and IRDAI laws will also be amended in LIC and IRDAI laws through ‘Dark Stores’. Under the amendments proposed to the LIC Act, the company’s board will be given more rights to take operational decisions such as branch expansion and recruitment. The purpose of the Bill is the main objective of the proposed amendments to protect the interests of policyholders, increase their financial security and encourage more companies’ entry into the insurance sector, which will promote economic growth and employment generation. These changes will increase the efficiency of the insurance industry, make it easier to do business and will help achieve the goal of ‘insurance for everyone by 2047’. ALSO READ: A big announcement of CPRL, McDonald’s restaurant will be the restaurant insurance sector’s current landscape Insurance Act, 1938 provides major legislative structure for the insurance sector in India. This controls the insurance business operations and the relationship between the insurer, its policyholder, shareholder and regulator IRDAI. Currently there are 25 life insurance companies in India and 34 General (Non-Life) insurance companies, including companies such as Agriculture Insurance Company of India Limited and ECGC Limited. The government had increased the FDI limit in the insurance sector from 26 percent to 49 percent in 2015 and then increased it to 74 percent in 2021. It will now be increased to 100 percent through the proposed amendments, which is expected to increase in insurance coverage and new investment opportunities in the country. (With agency input) in Parliament: Parliament made a big change in the rules regarding the nominee of your bank account in Parliament: On an average Rs 15,000 GST sits on every person- Rajiv Shukla in Parliament: 35- Finance bill, 2025 passed in Lok Sabha with 35-Signanas; Read everything first published – April 27, 2025 | 8:37 pm IST related posts

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