The ‘Sabka Bima Sabka Raksha’ (Amendment in Insurance Laws) Bill, 2025 was passed by voice vote in the Rajya Sabha, a day after it was passed in the Lok Sabha. This means that now FDI in the insurance sector can be increased from the current 74% to 100%. This will increase employment.
Sabka Bima Sabki Raksha Bill: Parliament on Wednesday passed a bill to increase FDI in the insurance sector from the current 74% to 100%. This is expected to increase the reach of insurance, reduce premiums and increase employment opportunities. The ‘Sabka Bima Sabka Raksha’ (Amendment in Insurance Laws) Bill, 2025 was passed by voice vote in the Rajya Sabha, a day after it was passed in the Lok Sabha.
Foreign companies will be able to bring more capital into the insurance sector
The House also rejected several amendments made by the opposition to the bill, including an amendment to send the legislation to a parliamentary panel for further scrutiny. Responding to the debate on the bill, Finance Minister Nirmala Sitharaman said, these amendments will allow foreign companies to bring more capital into the insurance sector. The Finance Minister told the House that opening up this sector has helped in increasing the reach of insurance in the country and there is further scope for it.
Employment opportunities will increase in India
Finance Minister Nirmala Sitharaman said, increasing the FDI limit to 100% will open the way for more foreign companies to come to India, because in many cases they are not able to get joint venture partners due to various reasons. He also expressed confidence that with the entry of more companies, competition will increase and premiums will come down. Also, the youth will get more opportunities for jobs.
3 times increase in jobs only if FDI is increased from 26 to 74%
The Finance Minister said that ever since the FDI limit was increased from 26% to the current 74%, jobs in this sector have increased almost 3 times. He also rejected the opposition’s allegations that the government was in a hurry to pass the bill. He said that there were talks on this for about two years.
Insurance for all, protection for all, what’s in the bill?
⦁ The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, will amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956, and the Insurance Regulatory and Development Authority Act, 1999.
⦁ It also opens the way for merger of a non-insurance company with an insurance firm. The purpose of this bill is also to accelerate the development of the insurance sector and insure better protection to the policyholders.
⦁ This Bill provides for the establishment of Policyholder Education and Protection Fund to protect the interests of policyholders.