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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Andhra to be developed as knowledge, creator economy hub: CM Naidu
New Delhi/Amaravati (PTI): Andhra Pradesh Chief Minister N Chandrababu Naidu on Friday said the state is taking steps to transform itself into a knowledge and creator economy hub with a strong focus on artificial intelligence and quantum technology.
He noted that Andhra Pradesh has abundant tech-driven youth and the government is formulating plans to train them in futuristic technologies with support from global technology firms.
"Our goal is to transform Andhra Pradesh into a knowledge hub by focusing on AI, quantum computing, data centres, drone cities and space cities. The youth will remain our biggest asset over the next 25 years, and we seek global partnerships to scale up the creator economy," said Naidu during his interactions at the India AI Impact Summit 2026 in Delhi.
Naidu, who participated in the summit in the national capital, also held meetings with several global technology leaders and industrialists to explore collaborations in artificial intelligence, clean energy and innovation ecosystems.
He met Adobe CEO Shantanu Narayen, Autodesk AI Head Mike Haley, Aramco India Director Abdul Rehman AiThukair, LEGO Education Vice President Tom Hall, Aadhaar Founder and CTO Srikanth Nadhamuni, Khosla Ventures Managing Partner Vinod Khosla and others at the AP Pavilion.
The chief minister also held discussions with Saudi Aramco representatives on clean energy projects, including solar initiatives, and invited the company to expand operations in Andhra Pradesh, stating that the state is highly suitable for green energy production.
He sought support from NVIDIA Vice President Callista Redmond for establishing AI Living Labs and proposed partnerships through the Ratan Tata Innovation Hub to promote youth innovation, including collaborations with IIT Tirupati and Indian Institute of Science Education and Research (IISER) Tirupati under the Andhra Pradesh Future Innovation and Research for Science and Technology (AP FIRST) initiative.
Naidu urged Autodesk leadership to support the development of Global Capability Centres in design engineering and requested the establishment of an Innovation Academy in Amaravati aligned with quantum technology, besides proposing AI and robotics learning labs in partnership with LEGO Education.
He also discussed AI-driven smart governance solutions with Quantela Inc Chairman Sridhar Gadhi, while World Bank Group Digital AI Regional Director Mahesh Uttamchandani met Naidu on the sidelines of the summit.
Following the meetings, Naidu visited various exhibition stalls at the summit, including those of NVIDIA, Tata, Intel and Microsoft, and reviewed AI applications across agriculture, healthcare and industry.
