Parliament Clears 100% FDI in Insurance: Boosts Growth, Jobs, Lowers Premiums

• Parliament passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, allowing 100% FDI in the insurance sector, up from 74%.
• The bill, cleared by both Lok Sabha and Rajya Sabha, aims to increase insurance penetration, lower premiums, and create more jobs.
• Finance Minister Nirmala Sitharaman stated the move will attract more foreign capital and companies, enhancing competition.
• The legislation amends the Insurance Act, 1938, LIC Act, 1956, and IRDA Act, 1999, and permits mergers of non-insurance with insurance firms.
• It also establishes a Policyholders' Education and Protection Fund to safeguard policyholder interests.

Why It Matters: 100% FDI in insurance aims to boost sector growth, competition, and job creation while protecting policyholders.