New Delhi: The central government is preparing to table a key legislation in the upcoming Winter session of Parliament that aims to allow 100 per cent foreign direct investment (FDI) in India’s insurance sector.
The Winter session will run from December 1 to December 19, offering 15 working days for legislative business.
As per the Lok Sabha bulletin, the Insurance Laws (Amendment) Bill, 2025 is among the ten bills scheduled for discussion. The proposed law is designed to expand insurance penetration, boost sectoral growth, and improve the overall business environment for insurers.
Earlier, in her Union Budget speech, Finance Minister Nirmala Sitharaman announced the government’s intention to lift the FDI cap from 74% to 100%, calling it a pivotal reform for the financial sector. To date, India’s insurance industry has drawn nearly ₹82,000 crore in foreign investment.
To implement this reform, the finance ministry has recommended amendments to several key laws, including the Insurance Act, 1938, which currently governs the insurance ecosystem. Changes under consideration include raising the FDI ceiling, lowering paid-up capital requirements, and creating a composite licence framework.
Along with the 1938 Act, the government also intends to revise the Life Insurance Corporation Act, 1956 and the Insurance Regulatory and Development Authority Act, 1999. Amendments to the LIC Act propose giving more operational autonomy to the insurer’s board, enabling it to independently manage matters such as branch expansion and staffing.
The broader objective of the reform package is to safeguard policyholders’ interests, strengthen financial protection, and make room for more players in the sector—ultimately driving economic activity and job creation. The government believes these changes will modernise the insurance industry, simplify compliance, and accelerate progress toward the vision of “Insurance for All by 2047.”
The Securities Markets Code Bill, 2025 is also on the ministry’s agenda. This bill aims to merge the provisions of the SEBI Act (1992), the Depositories Act (1996), and the Securities Contracts (Regulation) Act (1956) into a unified, streamlined Securities Markets Code.
In addition, the finance ministry will present the first batch of Supplementary Demands for Grants for 2025–26, seeking Parliament’s approval for expenditure that extends beyond the allocations in the current Budget. A second batch is expected during the Budget session likely starting at the end of January.
