Insurance Laws (Amendment) Bill 2025: 100% FDI and Composite Licence
Why in the news
A bill delivering the FY26 Budget promise of 100% insurance FDI has been listed for the Winter Session.
Key facts
- Composite licence: one licence for life, health and general insurance.
- Entry capital can be lower for under-served segments, but not below ₹50 crore.
- Supports ‘Insurance for All by 2047’; sector projected to grow 7.1% a year for five years.
| Provision | Change |
|---|---|
| FDI limit | 74% to 100% (entire premium invested in India) |
| Foreign reinsurer NOF | ₹5,000 crore to ₹1,000 crore |
| Foreign-participation conditions | Management, board and dividend rules to be reviewed |
Exam angle
- Terms: composite licence, NOF, insurance density.
- Countries allowing 100% FDI: Canada, Brazil, Australia, China.