Published: 15 December 2025PIBEconomy
Sabka Bima Sabki Raksha Bill Passed by Lok Sabha: Insurance FDI Raised to 100%
The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025 was passed by Lok Sabha on December 16, raising the FDI limit in the insurance sector from 74% to 100%. The Rajya Sabha passed it on December 17.
The Bill amends the Insurance Act 1938, the LIC Act 1956, and the IRDAI Act 1999. It aims to enhance insurance penetration towards the 'Insurance for All by 2047' goal, facilitate entry of more players, bring down premiums through competition, and promote ease of doing business. India's insurance penetration currently stands at around 4%, well below the global average of 7%.
0Mains angle
Q: Examine the reform significance of the Sabka Bima Sabki Raksha Bill raising insurance FDI to 100 percent.
Answer (50 words):
Passed by Lok Sabha on 16 December and Rajya Sabha 17 December, the Bill amends the Insurance Act 1938, LIC Act 1956, and IRDAI Act 1999, raising FDI from 74 to 100 percent. Advancing Insurance for All by 2047, it invites new players and lifts penetration toward the 7 percent global mark.
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Linked questionMedium
The Sabka Bima Sabki Raksha Bill raises insurance FDI limit to what percentage?
Explanation · Correct answer DThe Bill raises the FDI limit in insurance from 74% to 100%, aiming for 'Insurance for All by 2047'.
Frequently asked questions
When did Parliament pass the Sabka Bima Sabki Raksha Bill?
The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025 was passed by Lok Sabha on December 16. The Rajya Sabha passed it on December 17.
What change did the Bill make to insurance FDI limits?
The Bill raised the FDI limit in the insurance sector from 74% to 100%.
Which insurance laws are amended by the Bill?
The Bill amends the Insurance Act 1938, the LIC Act 1956, and the IRDAI Act 1999.
What goals and insurance penetration context are mentioned?
The Bill aims to enhance insurance penetration towards the 'Insurance for All by 2047' goal, facilitate entry of more players, bring down premiums through competition, and promote ease of doing business. India's insurance penetration currently stands at around 4%, well below the global average of 7%.
