With a view to provide insurance to all by 2047 and improving ease of doing business in the sector, the Lok Sabha has passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025. According to the bill, the amendment seeks to raise the foreign direct investment (FDI) limit in the insurance sector from the existing 74 per cent to 100 per cent, and paves the way for the merger of a non-insurance company with an insurance firm.
The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, would lead to amendments in the Insurance Act, 1938, the Life Insurance Corporation Act, 1956, and the Insurance Regulatory and Development Authority Act, 1999. The Bill further aims to accelerate the growth and development of the insurance sector and ensure better protection of policyholders. The bill provides for the establishment of the Policyholders' Education and Protection Fund to protect policyholders' interests. It would also improve the ease of doing business for insurance companies, intermediaries, and other stakeholders, bring transparency to regulation-making, and enhance regulatory oversight over the sector.
With regard to the term of office of the Chairperson and other whole-time members, the bill provides for a five-year term or until they attain the age of 65 years, whichever is earlier. At present, the upper age limit for whole-time members is 62 years, while for the Chairman it is 65 years.
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