New Delhi: The Lok Sabha passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, paving the way for wide-ranging reforms in the insurance sector. The legislation seeks to amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956, and the Insurance Regulatory and Development Authority Act, 1999, to accelerate sectoral growth and strengthen policyholder protection.
Replying to the debate, Finance Minister Nirmala Sitharaman said the government has focused on expanding insurance coverage through welfare-oriented schemes and strengthening public sector insurers. She noted that more than Rs 17,000 crore has been infused into public sector insurance companies to enhance their competitiveness.
Sitharaman said higher foreign direct investment limits were introduced to improve services, adding that insurance density, penetration and coverage have seen significant growth over the past 11 years.
The minister also referred to the recent GST Council decision to exempt life and health insurance premiums from GST, with the secretariat monitoring complaints on the transfer of benefits to policyholders. She stressed the need to improve regulatory oversight and raise public awareness about insurance.
Opposition members raised concerns over allowing 100 per cent FDI, with some demanding greater parliamentary scrutiny. After the discussion, the House was adjourned for the day.
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