Insurance Bill 2025: 7 Key Changes Impacting All Policyholders, 100% FDI Approved

• "Sabka Bima, Sabki Raksha (Insurance Laws Amendment) Bill 2025" approved, amending 3 key insurance laws.
• 100% Foreign Direct Investment (FDI) now allowed in insurance companies, up from 74%, to boost competition and investment.
• Mandatory accurate record-keeping for policyholders' data and full responsibility for data security now rests with insurance companies.
• Strict rules prevent arbitrary sharing of personal information; data can only be shared with legal requirement, public interest, or customer consent.
• Increased transparency in claim rejections, emphasis on digital policies, and heavy penalties for rule violations (up to ₹10 crore).

Why It Matters: The new Insurance Bill 2025 brings major reforms, enhancing customer protection, transparency, and FDI in the sector.