Current development ·
100 per cent FDI allowed in insurance companies
The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 raised the FDI limit in Indian insurers from 74 to 100 per cent; most provisions took effect on 5 February 2026.
What changed
Parliament passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025 on 16–17 December 2025, and it received assent on 20 December 2025. It amends the Insurance Act, 1938, the LIC Act, 1956 and the IRDA Act, 1999, and raises the FDI limit in insurance companies from 74 to 100 per cent of paid-up equity. Most provisions were brought into force on 5 February 2026, and DPIIT's Press Note 1 (2026) placed insurers under the automatic route.
Foundation connections
See financial and social inclusion for low insurance penetration, and liberalization measures for the FDI path.
Exam use and limits
- Prelims: The path of the FDI cap: 26 → 49 → 74 → 100 per cent, and the three Acts amended.
- Mains: Ask whether foreign capital will raise penetration and lower premiums, and what that means for regulation and policyholder protection.
Source: All India Radio News (Prasar Bharati)