Finance minister Sitharaman, while speaking in the Lok Sabha, said, “IRDAI being empowered to disgorge wrongful gains made by insurers and distribute them to affected insurance policyholders.We are asking regulators to rationalise the penalty.”
The government is yet to announce when the bill will be tabled in the Rajya Sabha
New Delhi: On Tusday,the Lok Sabha has passed the Insurance Amendment Bill,2025 in one day allowing 100 per cent foreign direct investment (FDI) in the Indian insurers.
Earlier, during the day amid strong protest from the Opposition, a bill, seeking to strengthen policyholder protection, deepen insurance penetration and accelerate the growth of the insurance sector in the country, was introduced in the Lower House of Parliament by Finance Minister Nirmala Sitharaman .
The legislation, officially named as ‘The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025’, will amend Insurance Act, 1938, Life Insurance Corporation Act, 1956, and Insurance Regulatory and Development Authority Act, 1999.
Talking about the provisions in the Bill in the Lok Sabha, Sitharaman highlighted the benefits of ease of doing business measures that have been considered in the Bill.
The government is yet to announce when the bill will be tabled in the Rajya Sabha.
The bill aims at bringing transparency, easing compliance mandate, and increasing FDI, FM said.
While replying to a debate on the Bill, Sitharaman said, “need to spread awareness about insurance among people.The livelihood of insurance agents will be protected.”
Sitharaman further said,“The IRDAI being empowered to disgorge wrongful gains made by insurers and distribute them to affected insurance policyholders.We are asking regulators to rationalise the penalty.”
Govt has taken steps to strengthen PSU insurance firms; infused Rs 17,450 cr in 3 non-life firms,she added.
She stated,“We are providing LIC the autonomy to open zonal offices.”
GST council secretariat is monitoring complaints regarding GST cut benefit not being passed on to policyholders,revealed Sitharaman.
Sitharaman said the Insurance Bill seeks to reduce net owned fund requirement for re-insurance firms to Rs1,000 crore from Rs 5,000 crore.