New Delhi, Dec 12: The Union Cabinet, led by Prime Minister Narendra Modi, has approved a proposal for 100% foreign direct investment (FDI) in the insurance sector, removing the previous 74% limit.

This move is part of economic reforms aimed at increasing foreign investment and enhancing competition, which will ultimately benefit consumers.

The Insurance Laws (Amendment) Bill 2025 is set to be introduced in the current parliamentary session, focusing on boosting insurance penetration and improving the ease of doing business.

Proposed changes include revising the Insurance Act, 1938, and related legislation to strengthen policyholder protections and encourage market participation, with a vision of achieving “Insurance for All” by 2047.

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