Union Cabinet likely to have approved Insurance Amendment Bill; briefing at 4 pm today

The Union Cabinet has likely approved the Insurance Amendment Bill, sources said. The government is expected to introduce the Bill in Parliament on Monday (December 15).

The Bill, which proposes raising the FDI limit in insurance companies to 100% among other changes, aims to expand capital access, simplify licensing, and strengthen governance in the sector.

A Cabinet briefing on the approval is scheduled for 4 pm.

The Bill aims to amend three key laws — the Insurance Act, the LIC Act, and the IRDAI Act — with provisions intended to expand access to capital, streamline licensing norms, and strengthen governance frameworks

across the sector. The changes form part of the government’s broader objective of achieving “Insurance for All by 2047.”

Supporters of the amendments say the increased FDI cap could support the industry’s financial depth and attract global expertise.