The government is likely to introduce the Insurance Amendment Bill in the winter session of parliament that convenes in November and December. This new bill proposes 100% FDI in the insurance industry.
The finance ministry has proposed amending several provisions of the Insurance Act, 1938, including raising FDI, lowering paid-up capital requirements, and introducing a composite license provision.
The amendments will also involve changes to the Life Insurance Corporation Act of 1956 and the Insurance Regulatory and Development Authority Act of 1999 as part of a comprehensive legislative exercise.
The FDI limit in the insurance sector was last increased from 49% to 74% in 2021, prior to which it was raised from 26% to 49% in 2015. There are 25 life insurers and 34 non-life or general insurers currently operating in the country.