The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, passed during the Winter Session of Parliament, was notified on December 21, 2025. The Act introduces Section 3AA allowing 100% foreign direct investment (FDI) in Indian insurance companies — a significant liberalisation from the earlier 74% cap. The reform aims to deepen insurance penetration in India, which at around 4% of GDP remains well below the global average of approximately 7%. Key provisions include new track-and-trace compliance requirements for policy issuance, stricter penalties under Sections 102 and 105BA for fraudulent claims and misrepresentation, and enhanced powers for the Insurance Regulatory and Development Authority of India (IRDAI) under Sections 14A to 14E for market supervision and consumer protection. The government anticipates that greater foreign capital inflows will boost the capacity of Indian insurers, increase competition, improve product innovation, and expand coverage to underserved rural and semi-urban populations. Rajasthan, with one of India's largest rural populations and relatively low insurance penetration in Tier-2 and Tier-3 districts, stands to benefit from this reform as more insurers are likely to expand their networks into states like Rajasthan.