The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 came into force on February 5, 2026, marking the most significant overhaul of India's insurance regulatory framework in decades. The Act was passed by Lok Sabha on December 16 and Rajya Sabha on December 17, 2025, and received Presidential assent on December 20, 2025.

Key provisions include: (1) Raising FDI limit in Indian insurance companies from 74% to 100% of paid-up equity capital, positioning India as one of the most open insurance markets globally; (2) Reducing net-owned fund requirements for foreign reinsurance entities from ₹5,000 crore to ₹1,000 crore; (3) Establishing a dedicated Policyholders' Education and Protection Fund; (4) Aligning policyholders' data collection with the Digital Personal Data Protection (DPDP) Act, 2023; (5) Broadening the definition of insurance intermediaries to include managing general agents and insurance repositories; and (6) Empowering IRDAI to disgorge wrongful gains from insurers and intermediaries.

The Act amends the Insurance Act 1938, the LIC Act 1956, and the IRDA Act 1999. The enhanced FDI ceiling is expected to attract fresh capital inflows, improve technology adoption, introduce global best practices, and increase employment in the insurance sector. Rajasthan, with its large uninsured rural population, stands to benefit from enhanced penetration as global insurers seek to expand into tier-2 and tier-3 markets.