Insurance Amendment Bill 2025: Finance Minister Nirmala Sitharaman Tables Bill In Lok Sabha

Finance Minister Nirmala Sitharaman on Tuesday tabled the Insurance Amendment Bill 2025 in Lok Sabha.

The Union Cabinet approved the bill that hikes FDI in the insurance sector on Friday and NDTV Profit was one of the first outlets to report on it.

NDTV Profit further reported that the proposed Insurance Bill 2025 will empower Insurance Regulatory and Development Authority to cap agent commissions through regulations and also tighten oversight on payouts and disclosures.

In addition, people in the know told NDTV Profit that IRDAI will decide commission limits through regulations. It will also prescribe limits on any commission, remuneration or reward payable to agents or intermediaries.

Commenting on this Nilesh Sathe, Former IRDAI told NDTV Profit that the commission and remuneration always had a limit and regulations on commissions were already present.

He further added that these regulations must be placed within six months of the passing of the Act.

The main objective of the bill is to raise FDI in the insurance sector to 100 per cent, with a view to providing insurance to all by 2047.

The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, seeks to amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956, and the Insurance Regulatory and Development Authority Act, 1999, according to the Bill circulated to members of Parliament ahead of its introduction in Parliament.

The amendment will effectively raise the Foreign Direct Investment limit in the insurance sector from 74% to 100%, it said.

Despite the Bill to hike FDI in the insurance sector to 100%, one of the top officials — Chairman, Managing Director, or CEO — must be an Indian citizen.

The Bill further aims to accelerate the growth and development of the insurance sector and to ensure better protection of policyholders, as per the statement of objects and reasons.

It would also improve the ease of doing business for insurance companies, intermediaries, and other stakeholders, bring transparency to regulation-making, and enhance regulatory oversight over the sector, it said.

With inputs from PTI