The Lok Sabha has embraced the progressive Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill 2025, a landmark legislation poised to revolutionize India’s insurance landscape by enhancing accessibility, transparency, and global investment. Introduced by Finance Minister Nirmala Sitharaman, the Bill amends key laws including the Insurance Act 1938, LIC Act 1956, and IRDAI Act 1999, promising better regulatory oversight, simplified compliance, and seamless services for millions.
Finance Minister Sitharaman highlighted the government’s visionary flagship schemes like PM Jeevan Jyoti Bima Yojana, PM Suraksha Bima Yojana, PM Jan Arogya Yojana, and Krishi Bima Yojana, which deliver low-premium insurance to the poorest sections, ensuring no one is left behind. The Bill boosts FDI from 74% to 100%, attracting global expertise and capital to expand coverage toward the “Insurance for All by 2047” goal. It also lowers net-owned fund requirements for foreign reinsurers from ₹5,000 crore to ₹1,000 crore, fostering competition and innovation.
Key reforms empower IRDAI with robust enforcement like SEBI-style disgorgement powers, a one-time registration for intermediaries, and streamlined equity transfers, reducing red tape while upholding solvency and data protection. Public sector giants like LIC gain flexibility to open zonal offices and restructure overseas operations, ensuring they meet rising demands efficiently. These measures promise greater choices, technology-driven underwriting, and risk management for households and businesses nationwide.
Discussions underway signal strong parliamentary momentum for this transformative Bill, which builds public sector resilience while inviting international partnerships. By prioritizing transparency and ease, it positions India as a global insurance hub, safeguarding futures and driving economic stability for all