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GS3 · Insurance

Sabka Bima Sabki Raksha Bill passed; 100% FDI in insurance

1 min readFinancial Markets
Battle IAS current affairs title card: Sabka Bima Sabki Raksha Bill passed; 100% FDI in insurance (GS3 · Insurance, 18 December 2025)

What happened

  • Parliament passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025 on 17 December 2025. It allows up to 100% FDI in insurance companies [PIB].
  • It amends the Insurance Act, 1938, the LIC Act, 1956, and the IRDA Act, 1999 [PIB].

Background

  • The FDI cap in insurance was 74%. Insurance penetration in India is around 4% of GDP.

Why it matters

  • More foreign capital can widen cover. The aim is “Insurance for All by 2047”.

How to use this in Mains

GS-III Indian economy: mobilisation of resources, financial inclusion

  1. As per PIB (2025-12-18): parliament passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025 on 17 December 2025. It allows up to 100% FDI in insurance companies.
  2. More foreign capital can widen cover. The aim is "Insurance for All by 2047".
Quotable data point

It amends the Insurance Act, 1938, the LIC Act, 1956, and the IRDA Act, 1999.

PIB: Finance: Insurance amendment bill passed, 18 Dec 2025

Exam angle

UPSC

Prelims: Insurance FDI cap.

Practice MCQs

Original practice questions (not PYQs).

Practice · UPSC

New FDI limit

Answer (c) & explanation

PIB.

Practice · UPSC

Acts amended

Answer (b) & explanation

PIB.

Practice · UPSC

Passed by Parliament on

Answer (b) & explanation

PIB.

Go deeper

ExplainerInsurance Sector in India: IRDAI, the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act 2025, 100% FDI, Penetration, Government Schemes and Insurance for All by 2047 (UPSC Notes + PYQs)

Official source: PIB: Finance: Insurance amendment bill passed, 18 Dec 2025

facts from cited sources only; faculty review pending