The government has already listed eight bills for their likely introduction and passage in the Monsoon session of the Parliament but there is no mention of the Insurance Amendment Bill in the list.The Ministry of finance officials earlier had indicated that the draft bill is ready and will be placed before Cabinet for its approval soon
New Delhi: The much awaited `Insurance Amendment Bill’’, proposing 100 per cent foreign direct investment (FDI) along with a host of sweeping reforms in the insurance sector, is yet to find its place in the month long Monsoon session of Parliament beginning from Monday.
The government has already listed eight other bills including the Merchant Shipping Bill, 2024, the Indian Ports Bill, 2025, and the Income Tax Bill, 2025 for their likely introduction and passage in the Monsoon session but there is no mention of the Insurance Amendment Bill in the list.
The Ministry of finance officials earlier had indicated that the draft bill is ready and will be placed before Cabinet for its approval soon,
The Monsoon session of the Parliament, which is expected to be stormy, as Opposition alliance consisting of 24 constituents of the INDIA bloc is ready to corner the government on multiple burning issues, will continue till August 21, with no sittings on August 13 and 14 due to Independence Day celebrations.
However, analysts have said though the government has not listed the Insurance Amendment Bill yet, it can still introduce it when the Parliament is in session with a short notice with the approval of the Cabinet.
The expectation that Insurance Amendment Bill’’ will, be introduced in the Monsoon session Parliament is running high as finance minister Nirmala Sitharaman has already made a budgetary announcement in February that foreign direct investment(FDI) in the Indian insurance sector will be raised from 74 per cent to 100 per cent.
“FDI limit for the insurance sector will be raised from 74 to 100 per cent. This enhanced limit will be available for those companies which invest the entire premium in India. The current guardrails and conditionalities associated with foreign investment will be reviewed and simplified, Sithraman had said while presenting her Budget in the Lok Sabha for the current fiscal.
The government had earlier had outlined that as part of comprehensive legislative exercise, the Life Insurance Corporation Act 1956, and the Insurance Regulatory and Development Authority Act, 1999 will be amended alongside the Insurance Act, 1938.
New likely provisions in the Amendment bill include- provisions for composite licensing, allowing insurers to sell both life and non-life products under a single license, reduction in paid-up capital, allowing agents to sell products from multiple insurers breaking away from the existing exclusivity model, amending LIC Act to empower its board to take operational decisions like branch expansion and recruitment, perpetual licensing for insurance brokers.
Several new prospective international and Indian players are waiting to know the provision of the new bill to take decisions on their business plans.
The Indian insurance industry is currently keenly waiting for the Insurance Amendment Bill along with a new chairman of the IRDAI.
The post has fallen vacant after Debasish Panda completed his term in March.
The government is likely to introduce and pass the several bills in the Lok Sabha. Some of the bills are- Manipur Goods and Services Tax (Amendment) Bill, 2025, Jan Vishwas (Amendment of Provisions) Bill, 2025, Indian Institutes of Management (Amendment) Bill, 2025, Taxation Laws (Amendment) Bill, 2025, Geo-Heritage Sites and Geo-Relics (Conservation and Maintenance) Bill, 2025, Mines and Minerals (Development and Regulation) Amendment Bill, 2025, National Sports Governance Bill, 2025, National Anti-Doping (Amendment) Bill, 2025.