The government is preparing to table the Insurance Laws (Amendment) Bill 2025 in the upcoming Winter Session of Parliament, aiming to raise foreign direct investment (FDI) in the insurance sector to 100% from the existing 74%, according to ET Now citing sources.
The Winter Session will run from December 1 to December 19, with 15 working days. The proposed amendment is among the key legislations listed in the Lok Sabha bulletin for introduction during the session.
According to earlier reports, the Bill aims to deepen insurance penetration, accelerate sectoral growth, and enhance ease of doing business. It forms part of the government’s broader strategy to modernise financial-sector regulations.
In her Union Budget speech this year, Finance Minister Nirmala Sitharaman had announced the plan to permit 100% foreign investment in the insurance sector, terming it a next-generation reform expected to unlock capital, improve product innovation, and strengthen competitiveness.
So far, the insurance sector has attracted ₹82,000 crore worth of FDI under the existing 74% limit. The Finance Ministry has proposed amendments to the Insurance Act, 1938, including reducing paid-up capital requirements and introducing a composite licence framework.
More details of the proposed changes are expected during the Bill’s introduction in Parliament next week.
