Rajya Sabha passes the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025

In brief

The Upper House of the Parliament, on 17 December 2025, approved the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025 (Bill)¹ , after prolonged deliberation, to modernise India’s insurance framework. The Bill aims to amend the Insurance Act, 1938 (Insurance Act); the Insurance Regulatory and Development Authority Act, 1999; and the Life Insurance Corporation Act, 1956. 

The key reforms include allowing up to 100% foreign direct investment in Indian insurance companies, reducing the net owned fund requirement for foreign re-insurers, providing perpetual registration validity of insurance intermediaries, streamlining and modernising definitions and operational norms. The Bill also strengthens the powers of the Insurance Regulatory and Development Authority of India (IRDAI), introduces provisions for data security and confidentiality, and broadens the scope for new business models and insurance intermediaries.