Finance Minister Nirmala Sitharaman announced that the Insurance Amendment Bill, which proposes 100% foreign direct investment (FDI) in the insurance sector, is likely to be introduced in the upcoming Winter session of Parliament. The session usually begins in the second half of November and ends before Christmas.
Currently, foreign investment in the insurance sector is capped at 74%. The proposed bill aims to raise this limit to 100% as part of wider financial sector reforms. According to the Finance Ministry, the move will simplify the rules, attract more global investors, and improve ease of doing business in India.
So far, the insurance industry has attracted ₹82,000 crore through FDI. The amendments also plan to empower the Life Insurance Corporation (LIC) board to take decisions on recruitment and branch expansion.
The bill mainly focuses on protecting policyholders’ interests, enhancing financial security, and encouraging new players to enter the market. This step is expected to boost insurance penetration, create more jobs, and strengthen economic growth.
With 25 life insurers and 34 non-life insurers already operating in India, this change could mark a major milestone. The government hopes it will help achieve the goal of “Insurance for All by 2047.”
