Govt set to introduce Bill to hike FDI in insurance sector to 100 pc in Parliament
New Delhi (PTI): The government is planning to introduce a Bill in Parliament this week to raise FDI in the insurance sector to 100 per cent, with a view to providing insurance to all by 2047.
The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, seeks to amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956, and the Insurance Regulatory and Development Authority Act, 1999, according to the Bill circulated to members of Parliament ahead of its introduction in Parliament.
The amendment will raise the Foreign Direct Investment limit in the insurance sector from 74 per cent to 100 per cent, it said.
Despite the Bill to hike FDI in the insurance sector to 100 per cent, one of the top officials — Chairman, Managing Director, or CEO — must be an Indian citizen.
It also paves the way for the merger of a non-insurance company with an insurance company.
The Bill received the Union Cabinet's nod on Friday, paving the way for its introduction in Parliament.
The Bill further aims to accelerate the growth and development of the insurance sector and to ensure better protection of policyholders, as per the statement of objects and reasons.
The Bill provides for the establishment of the Policyholders' Education and Protection Fund to protect policyholders' interests.
It would also improve the ease of doing business for insurance companies, intermediaries, and other stakeholders, bring transparency to regulation-making, and enhance regulatory oversight over the sector, it said.
With regard to the term of office of the Chairperson and other whole-time members, the Bill provides for a five-year term or until they attain the age of 65 years, whichever is earlier, it said.
At present, the upper age limit for whole-time members is 62 years, while for the Chairman it is 65 years.
Finance Minister Nirmala Sitharaman, in this year's Budget speech, proposed to raise the foreign investment limit to 100 per cent from the existing 74 per cent in the insurance sector as part of new-generation financial sector reforms.
So far, the insurance sector has attracted Rs 82,000 crore through foreign direct investment (FDI).
The amendments to the LIC Act propose empowering its board to take operational decisions, such as branch expansion and recruitment.
The proposed amendment primarily focuses on promoting policyholders' interests, enhancing their financial security, and facilitating the entry of additional players into the insurance market, thereby driving economic growth and employment generation.
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Brahmavar: Four arrested in Kotathattu murder case
Brahmavar: Police have arrested four persons in connection with the murder of a 30-year-old man following a quarrel after a drinking party at Kotathattu Padukere in Brahmavar taluk.
The deceased has been identified as Santhosh Mogaveera, a resident of Padukere. The arrested accused are Darshan (21) of Parampalli Padukere, Kaushik (21) of Neeradi Jeddu, Sasthan Pandeshwar, and Ankit (19) and Sujan (21), both residents of Kotathattu Padukere. All four have been produced before the court.
According to the police, the incident occurred on the evening of December 14. Santhosh, along with Sachin, Chethan, Kaushik, Sujan and Darshan, had gone to a bar and later came to the Padukere Circle, where they had food and were conversing. During this time, an argument broke out between the groups over issues related to Santhosh’s family and alcohol consumption. The verbal altercation escalated, with the accused allegedly abusing Santhosh and assaulting him together.
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It is alleged that during the scuffle, Darshan struck Santhosh forcefully on the back of his neck with his hand, while Kaushik also assaulted him. Though others attempted to intervene and stop the fight, Santhosh collapsed at the spot.
He was later rushed to a private hospital in Brahmavar, where doctors declared him brought dead. A case has been registered at Kota Police Station in this regard.
Brahmavar Circle Inspector Gopikrishna, Kota Sub-Inspector Praveen Kumar T and Station SI Mantesh Jabha Gowda visited the spot and conducted an inspection. Further investigation is underway.
