ENA Sectors 2025-12-19 17:35:58 <p><span style="font-size:14px"><strong>New Delhi, Dec 19 (KNN)</strong> Parliament has passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, which amends key legislation governing Indias insurance sector, including the Insurance Act, 1938, the Life Insurance Corporation Act, 1956, and the Insurance Regulatory and Development Authority Act, 1999.</span></p> <p><span style="font-size:14px">One of the provisions of the bill allows up to 100 per cent Foreign Direct Investment (FDI) in insurance companies, opening the sector to greater foreign participation. </span></p> <p><span style="font-size:14px">The move is expected to support capital augmentation, adoption of advanced technologies, implementation of global best practices, and expansion of employment opportunities. </span></p> <p><span style="font-size:14px">Increased competition is projected to enhance efficiency in insurance products and services, ultimately benefiting policyholders.</span></p> <p><span style="font-size:14px">The bill introduces measures aimed at simplifying operations for insurers and intermediaries. It provides for one-time licensing of intermediaries and allows licenses to be suspended rather than cancelled outright. </span></p> <p><span style="font-size:14px">For insurers, the threshold for obtaining prior regulatory approval for share capital transfers has been raised from 1 per cent to 5 per cent, and the Net Owned Fund (NOF) requirement for Foreign Reinsurance Branches has been reduced from Rs 5,000 crore to Rs 1,000 crore. </span></p> <p><span style="font-size:14px">Additionally, LIC has been granted the autonomy to open zonal offices within India and to align its foreign offices with local laws and regulations.</span></p> <p><span style="font-size:14px">To safeguard policyholders, a dedicated Policyholders Education and Protection Fund will be established to raise awareness about insurance products. Collection and protection of policyholder data will be aligned with the Digital Personal Data Protection (DPDP) Act, 2023.</span></p> <p><span style="font-size:14px">The bill strengthens regulatory oversight by establishing standard operating procedures for rule-making and requiring a consultative process, empowering IRDAI to recover wrongful gains from insurers and intermediaries, and rationalising penalties with clearly defined factors for their imposition.</span></p> <p><em><strong><span style="font-size:14px">(KNN Bureau)</span></strong></em></p> 44491 https://knnindia.co.in/news/newsdetails/sectors/parliament-passes-sabka-bima-sabki-raksha-bill-2025-paving-way-for-100-fdi-in-insurance 2025-12-19 17:35:58 knnindia.co.in