Parliament Clears Insurance Bill Allowing 100% FDI

22 Dec 2025 CW Team

A key provision of the Bill allows up to 100 per cent foreign direct investment in insurance companies, opening the sector to greater global participation. The move is expected to support capital augmentation, adoption of advanced technologies and infusion of global best practices, while increasing competition to improve efficiency in insurance products and services for citizens.

To promote ease of doing business, the Bill introduces one-time licensing for intermediaries and provides for suspension of licences instead of immediate cancellation. For insurers, the threshold for prior regulatory approval for transfer of share capital has been increased from one per cent to five per cent. The net owned fund requirement for foreign reinsurance branches has also been reduced from Rs 50 billion to Rs 10 billion. Life Insurance Corporation of India has been granted greater operational autonomy, including the ability to open zonal offices and align overseas operations with local regulations.

Policyholder protection has been strengthened through the creation of a dedicated Policyholders’ Education and Protection Fund to promote insurance awareness. The Bill also mandates that policyholder data be collected and protected in line with the Digital Personal Data Protection Act, 2023.

Regulatory governance is further reinforced by introducing a consultative and standardised process for regulation-making. Insurance Regulatory and Development Authority of India has been empowered to disgorge wrongful gains from insurers and intermediaries, with rationalised penalties and defined criteria for their imposition.

The reforms are expected to expand insurance penetration, strengthen financial resilience and support long-term growth of India’s insurance ecosystem.

Parliament has recently passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, marking a major reform in India’s insurance sector. The legislation amends the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the Insurance Regulatory and Development Authority Act, 1999 to expand coverage, improve governance and enhance ease of doing business. A key provision of the Bill allows up to 100 per cent foreign direct investment in insurance companies, opening the sector to greater global participation. The move is expected to support capital augmentation, adoption of advanced technologies and infusion of global best practices, while increasing competition to improve efficiency in insurance products and services for citizens. To promote ease of doing business, the Bill introduces one-time licensing for intermediaries and provides for suspension of licences instead of immediate cancellation. For insurers, the threshold for prior regulatory approval for transfer of share capital has been increased from one per cent to five per cent. The net owned fund requirement for foreign reinsurance branches has also been reduced from Rs 50 billion to Rs 10 billion. Life Insurance Corporation of India has been granted greater operational autonomy, including the ability to open zonal offices and align overseas operations with local regulations. Policyholder protection has been strengthened through the creation of a dedicated Policyholders’ Education and Protection Fund to promote insurance awareness. The Bill also mandates that policyholder data be collected and protected in line with the Digital Personal Data Protection Act, 2023. Regulatory governance is further reinforced by introducing a consultative and standardised process for regulation-making. Insurance Regulatory and Development Authority of India has been empowered to disgorge wrongful gains from insurers and intermediaries, with rationalised penalties and defined criteria for their imposition. The reforms are expected to expand insurance penetration, strengthen financial resilience and support long-term growth of India’s insurance ecosystem.

Resources

09 Mar 2026

Haworth India Hosts Women’s Leadership Panel Series

Haworth India marked International Women’s Day by hosting a leadership roundtable series titled ‘Give to Gain’, bringing together senior women leaders from architecture and design firms, corporates and project management consultancies. The series has been conducted in Delhi and Mumbai, with upcoming sessions scheduled in Bengaluru and Hyderabad on 27 March 2026. Structured as moderated panel discussions followed by audience interaction, the initiative examined the business impact of women’s leadership and the role of inclusive workplaces in supporting professional growth. Manish Khan..

Real Estate

09 Mar 2026

Max Estates Secures RERA For Max One Project

Max Estates has secured RERA approval (UPRERA No.: UPRERAPRJ9759) for its Max One development around Max Towers in Sector 16B, Noida, bringing renewed progress to a project previously stalled following the insolvency of its earlier developer. Spread across around 10 acres with an estimated development potential of about 2.5 million sq ft, Max One is planned as an integrated mixed-use campus combining serviced residences, premium offices, retail spaces and a private club. The project is expected to generate total sales potential of about Rs 20 billion along with an estimated annuity rental inc..

Real Estate

09 Mar 2026

Hindware Introduces Starc Smart Wall Mount Toilet

Hindware has introduced the Starc Smart Wall-Mount Toilet under its Hindware Italian Collection, designed to combine automation, hygiene and contemporary bathroom aesthetics. The model features automatic flushing, sensor-based seat opening and closing, and remote-controlled functions. It also includes an oscillating water spray and warm air dryer for cleaning, along with a self-cleaning nozzle designed to maintain hygiene. Additional features include adjustable heated seating, customisable water temperature and pressure settings, a foot-touch flush system and an LCD control interface. The wa..