Finance Ministry notifies 100% FDI in insurance sector
News
- The Union Ministry of Finance has notified 100% foreign direct investment (FDI) in the insurance sector under the automatic route.
- While 100% foreign investment will be allowed in insurance companies and intermediaries, including brokers, under the automatic route, the cap is 20% for Life Insurance Corporation (LIC).
- The Parliament had passed the Sabka Bima Sabki Raksha (amendment of insurance laws) Bill, 2025, in, 2025, paving the way for hiking the FDI cap in the insurance sector to 100% under the automatic route, from 74% earlier. Subsequently, after the President’s assent, the Bill became law.