New Delhi, December 17: The Rajya Sabha on Wednesday approved the ‘Sabka Bima Sabki Raksha’ (Amendment of Insurance Laws) Bill, 2025. The Lok Sabha had passed this bill a day earlier. The main objective of this bill is to provide insurance cover to every citizen of the country by the year 2047.
Union Finance Minister Nirmala Sitharaman introduced the ‘Sabka Bima Sabki Raksha’ (Amendment of Insurance Laws) Bill, 2025 in the Rajya Sabha. After discussion, the Rajya Sabha passed the bill to increase Foreign Direct Investment (FDI) in the insurance sector to 100%, with the aim of providing insurance to everyone by 2047. Experts say this is a major reform aimed at bringing more global capital into one of the world’s fastest-growing markets.
Responding to a discussion on the “Sabka Bima Sabki Suraksha” (Insurance Laws (Amendment) Bill, 2025) in the Rajya Sabha, Sitharaman said, “Since assuming office in 2014, our government has undertaken major reforms in the insurance sector, recognizing that comprehensive coverage for our people, businesses, and agriculture is essential for true national development.”
The government’s proposed amendments to the “Sabka Bima Sabki Suraksha” (Insurance Laws (Amendment) Bill, 2025) include raising the current limit of foreign direct investment (FDI) in the insurance sector from 74% to 100%. With this 100% increase, the law mandates that the top executive officer of a company, either the chairman or managing director, be an Indian citizen.
The bill allows the merger of non-insurance companies with insurance companies, which will promote consolidation and expansion in the sector. Additionally, amendments to the LIC Act are proposed to empower its board to take operational decisions such as branch expansion and recruitment.