Cabinet Approves Insurance Bill: FDI to 100%, Policyholder Safety, LIC Freedom

• Cabinet approves 'Sabka Bima Sabki Raksha' (Insurance Law Amendment) Bill, 2025, to reform the insurance sector.
• The bill proposes increasing the FDI limit in insurance companies from 74% to 100%.
• It includes provisions for a Policyholders Education and Protection Fund and empowers IRDAI to order the return of undue profits.
• Measures to enhance ease of doing business include one-time registration for intermediaries and increased share transfer approval limits.
• LIC will gain more operational freedom, and the Net Owned Fund condition for foreign reinsurers will be reduced.

Why It Matters: India's insurance sector faces major reforms to boost coverage and protect policyholders.