Insurance Laws Amendment Bill: 100% FDI and Composite Licence
Why in the news
The government is expected to bring a bill in the Monsoon Session to modernise insurance law and draw global capital.
Key proposals
- 100% FDI, up from the present 74% cap.
- Composite licence: one entity may sell life as well as non-life cover; inspired by Singapore, Malaysia and the UK.
- Foreign reinsurers: entry eased by lowering the net owned fund norm to ₹1,000 crore (earlier ₹5,000 crore).
- Laws amended: Insurance Act, 1938; LIC Act, 1956; IRDA Act, 1999.
- More autonomy for IRDAI and LIC over appointments, staffing and infrastructure.
Other bills
- Income Tax Bill, 2025: select committee (chair Baijayant Panda) report due on day one of the session; bill itself likely in the Winter Session, Nov-Dec 2025.
- IBC and Companies Act changes: unlikely this session; internal reviews still pending.
Exam angle
- FDI cap now 74%; proposed 100%.
- Acts to be amended: 1938, 1956 and 1999.