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Insurance Amendment Bill: 100% FDI Plan Explained

16 September 20251 min read
BANKING & FINANCEInsuranceAmendment Bill:100% FDI PlanExplained16 September 2025safalsetu.com

Why in the news

Nirmala Sitharaman signalled the Bill would probably be brought in the next Winter Session of Parliament.

Proposals

  • Review and simplify conditions on foreign investment.
  • Reduce paid-up capital needs.
  • Introduce a composite licence.
  • LIC Act: let the LIC board decide on branches and recruitment; IRDA Act: align with the new FDI policy.

Objectives

  • Policyholder protection, new entrants and competition.
  • Progress towards ‘Insurance for All by 2047’, ease of business and jobs.

Exam angle

  • Cap now 74%; proposed 100%.

Test yourself

1. The Insurance Amendment Bill proposes raising FDI in insurance from 74% to what level?

The Bill proposes full 100% FDI.

2. Which Insurance Amendment Bill goal is linked to the year 2047?

Boosting penetration serves the aim of 'Insurance for All by 2047'.

3. Which Act would be amended to empower the LIC board on branch expansion and recruitment?

The Life Insurance Corporation Act, 1956 is the one changed for the LIC board's powers.

This topic is part of Daily Current Affairs 14 & 15 September 2025 (15 topics).

All topics of the dayDay quizSeptember 2025

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