Govt Passes Bill to Hike Insurance FDI to 100% Amid Opposition Protests

• Lok Sabha passed The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, increasing FDI in the insurance sector from 74% to 100%.
• The bill amends the Insurance Act, 1938, Life Insurance Corporation Act, 1956, and Insurance Regulatory and Development Authority Act, 1999.
• Union Finance Minister Nirmala Sitharaman highlighted the focus on common people's insurance, while Opposition members like N K Premachandran, T Sumathy, and Saugata Roy strongly protested the 100% FDI.
• Key provisions include requiring a top official (Chairman, MD, or CEO) to be an Indian citizen, allowing mergers of non-insurance with insurance companies, and establishing a Policyholders’ Education and Protection Fund.
• The amendments aim to accelerate sector growth, protect policyholders, improve ease of doing business, and empower LIC's board for operational decisions.

Why It Matters: Parliament approves 100% FDI in insurance, aiming for growth and policyholder protection despite opposition.