Kathmandu. The Insurance Bill 2025, passed by the Parliament of India on Wednesday, provides for the establishment of an Insured Education and Security Fund to protect the interests of the insured.
The issue of protection of the insured interest has been given high priority in the bill and has been included in the Insurance Act itself. The Parliament on Wednesday passed the Insurance Laws (Amendment) Bill, 2025 after the Rajya Sabha passed it. The Insurance Laws (Amendment) Bill, 2025 was passed by the Rajya Sabha by a voice vote, a day after it was passed by the Lok Sabha.
In India, insurance premiums that have not been claimed for more than 10 years are required to be deposited in the Senior Citizens Welfare Fund. The bill is expected to introduce more explicit provisions on this issue as well.
The bill has also paved the way for increasing FDI in the insurance sector to 100 percent from the current 74 percent. The Indian government expects this to increase insurance penetration, reduce premiums and create jobs.
Replying to the discussion on the bill, Finance Minister Nirmala Sitharaman said the law amendments would allow foreign companies to infuse more capital into the insurance sector. She told the House that employment in the sector has almost tripled after the foreign investment limit was raised from 26 per cent to 74 per cent.
The bill will amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the Insurance Regulatory and Development Authority Act, 1999. It has also paved the way for merger of non-life insurance companies with insurance firms.
