Breaking: Govt Tables Bill for 100% FDI in Insurance in Winter Session

The Government plans to come up with a bill in the upcoming Winter Session of Parliament to raise the foreign direct investment (FDI) limit in the insurance sector to 100 percent from the current rate of 74 percent, stated a Lok Sabha bulletin.

The Winter season is scheduled from December 1 to 19 and will last 15 days, PTI reported.

The Insurance Laws (Amendment) Bill, 2025, aimed at deepening insurance penetration, accelerating sectoral growth, and fostering ease of doing business, is among 10 legislations listed for introduction. Nirmala Sitharaman, the Finance Minister, had proposed the 100 percent FDI limit in this sector in her Budget speech earlier this year,  as a move to revolutionise the financial sector with new-generation reforms.

Till date, the insurance sector has attracted Rs 82,000 crore in FDI.

Multiple Acts Need Amendments

The proposal includes amendments to the Insurance Act, 1938, including reduction in paid-up capital thresholds and introducing a composite license. As a part of a significant legislative overhaul, the Life Insurance Corporation Act, 1956 and the Insurance Regulatory and Development Authority Act, 1999, will also be amended alongside the Insurance Act.

Such amendments in the LIC Act will strengthen its board to take operational decisions, including branch expansion and recruitment.

The reforms intend to promote policyholder interests, increase financial security, and also attract new players to join, thereby supporting economic growth and employment generation.

The government confirmed that the changes are estimated to boost efficiency, ease of doing business and increase insurance penetration to achieve the target of ‘Insurance of All by 2047’.

Single Securities market code also planned

The Finance Ministry will also introduce the Securities Markets Code Bill (SMC), 2025, seeking to consolidate the SEBI Act, 1992, Depositories Act, 1996; and Securities Contracts (Regulation) Act, 1956.   

Apart from that, the ministry will present the first batch of Supplementary Demands for Grants for 2025-26 to ask for Parliamentary Approval for additional expenditure outside the Budget. The next batch of tables for the Budget session will be due early next year.