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Parliament passes bill to allow 100% foreign investment in insurance sector

Parliament has cleared the Sabka Bima Sabki Raksha Bill, allowing 100% foreign investment in insurance companies, with the government assuring strong safeguards for policyholders.

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Nirmala Sitharaman

Parliament on Wednesday cleared a major amendment to insurance laws, paving the way for 100 per cent foreign direct investment (FDI) in insurance companies, up from the earlier cap of 74 per cent. The Rajya Sabha passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, a day after it was approved by the Lok Sabha.

Replying to the debate, Finance Minister Nirmala Sitharaman said the move is aimed at attracting new insurers, intermediaries and allied service providers, which would expand the insurance ecosystem and lead to net employment generation.

Safeguards for policyholders highlighted

Addressing concerns over policyholder protection, Sitharaman said the Insurance Regulatory and Development Authority of India (IRDAI) has mandated a minimum solvency ratio of 1.5 for all insurance companies, meaning their assets must be at least one-and-a-half times their liabilities.

She added that insurers are also required to make provisions for liabilities classified as “incurred but not reported” and “incurred but not enough reported,” and profits can be calculated only after accounting for these obligations. According to the minister, these norms ensure adequate safeguards for policyholders.

LIC performance cited amid reforms

The finance minister said the government continues to strengthen the Life Insurance Corporation of India (LIC), citing its performance in the last financial year. LIC’s total assets under management rose by 6.45 per cent to ₹54.52 lakh crore in FY 2024-25, while its solvency margin improved to 2.11 from 1.98. The net value of new business also increased to ₹10,011 crore from ₹9,583 crore a year earlier.

Employment and consultation process

Sitharaman rejected claims that the amendments would hurt employment, stating that a deeper insurance market would benefit agents, brokers and intermediaries through wider outreach and more products.

She also countered opposition allegations that the bill was rushed, noting that consultations began in November 2024 with states and Union Territories. Inputs were also sought from insurers, regulators, industry bodies and the public, with over 13,000 responses received through the department’s website.

Wider changes under the bill

The legislation raises the FDI limit in insurance companies to 100 per cent and reduces the net-owned fund requirement for foreign reinsurance companies operating in India from ₹5,000 crore to ₹1,000 crore. It also broadens the definition of intermediaries to include managing general agents and insurance repositories.

The bill amends the Insurance Act, 1938, the LIC Act, 1956, and the IRDAI Act, 1999. Sitharaman said the changes align with the government’s long-term goal of achieving “Insurance for All by 2047” and improving ease of doing business.

Under the new framework, all insurance companies and intermediaries will be required to include the word “insurance” in their names for greater customer clarity. The amendments also introduce the provision for suspension of intermediary licences instead of immediate cancellation, allowing time for compliance.

Opposition voices concerns

Several opposition members opposed the bill in the Rajya Sabha, alleging it weakens accountability and prioritises shareholders over policyholders. They argued that insurance should primarily function as a social security mechanism rather than just an investment avenue.

Despite the criticism, the government maintained that the reforms would strengthen regulation, expand coverage, and support the growth of affordable insurance, especially in rural areas.

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Lucknow coaching centre fire: Students jump from first floor as massive blaze erupts in Aliganj

A massive fire at a coaching centre in Lucknow’s Aliganj area forced students to jump from the first floor as rescue teams launched operations.

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A major fire broke out at a building housing a coaching centre in Lucknow’s Aliganj area on Monday, triggering panic among students and local residents.There were fears that some students were trapped inside the premises, while some were seen jumping from the first floor in an attempt to escape the flames.

Fire department teams and rescue personnel rushed to the spot soon after receiving information about the blaze. Multiple fire tenders were deployed to bring the fire under control, while rescue operations continued amid fears that more people could be trapped inside the building.

Rescue operation underway amid panic

Visuals from the scene showed thick smoke billowing out of the building as students and staff tried to flee. Eyewitnesses said several students jumped from the first floor to save themselves as the fire spread rapidly through the structure.

Firefighters later managed to bring the blaze under control after extensive efforts. Authorities are yet to determine the exact cause of the blaze, and an investigation is expected to be launched.

Senior administrative and police officials reached the site to supervise rescue efforts. More details are awaited as emergency teams continue search and evacuation operations.

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Mallikarjun Kharge warns action against workers over DK Shivakumar slogans

Congress president Mallikarjun Kharge warned party workers of disciplinary action after pro-DK Shivakumar slogans disrupted a Congress programme in Bengaluru.

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Congress president Mallikarjun Kharge on Sunday strongly reprimanded party workers after a section of the audience raised slogans in support of DK Shivakumar during a party programme in Bengaluru. Kharge also warned that disciplinary action could be taken against those responsible for disrupting the event.

The incident took place during the ‘Sankalpa Samavesha’ programme, where party leaders had gathered for an organisational event. According to reports, some workers repeatedly chanted “DK-DK” slogans, prompting Kharge to intervene and ask them to maintain discipline.

Visibly upset by the sloganeering, Kharge reminded workers that the gathering was meant for the party and not for promoting individual leaders.

“This is not an individual’s programme, it is a party programme,” Kharge said while stressing that Congress functions as an organisation rather than around personalities.

The veteran leader also expressed displeasure over the disruption, questioning why a few people should dominate proceedings when many others had attended the programme. Referring to his long political career, Kharge said the party had contributed significantly to the rise of many leaders and emphasised the need to uphold organisational discipline.

Warning the workers against similar behaviour in the future, Kharge said footage from the event would be examined and action would be taken if necessary.

“Discipline is always necessary for the party. Whoever is shouting here, there will be footage. I will take disciplinary action after reviewing the footage,” he said.

The episode once again highlighted the importance the Congress leadership places on party discipline during organisational events in Karnataka.

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Delhi likely to see more rain and thunderstorms as IMD forecasts pleasant weather

Delhi-NCR is likely to witness light to moderate rainfall and thunderstorms as IMD forecasts pleasant weather and continued relief from heat.

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weekend curfew

Residents of Delhi and the National Capital Region (NCR) may continue to get relief from intense summer heat as the India Meteorological Department (IMD) has forecast light to moderate rainfall accompanied by thunderstorms and gusty winds in the coming days.

The weather department said changing weather conditions are expected to persist across Delhi-NCR, with intermittent rain and thunderstorm activity likely to keep temperatures under control. The maximum temperature in the national capital settled slightly above the seasonal average, while cloudy skies and moisture-laden winds are expected to bring further relief.

Rain forecast for Delhi-NCR

According to IMD, Delhi, Noida, Ghaziabad, Gurugram and Faridabad are likely to witness light rainfall and thunderstorms. The weather agency said the spell of rain could be accompanied by gusty winds, leading to a drop in temperatures across the region.

Officials said the prevailing weather pattern is being influenced by favourable monsoon conditions and local weather systems, which are helping maintain relatively pleasant conditions in the region. The maximum temperature in Delhi is expected to remain below or around the 40 degrees Celsius mark over the next few days.

Monsoon advances over northern India

The southwest monsoon has advanced further into several parts of northern India, including areas of Uttar Pradesh and Rajasthan. Weather officials have indicated that conditions remain favourable for the monsoon’s further advance across more regions in northwestern India.

Meanwhile, different parts of Uttar Pradesh are expected to experience varied weather conditions, with eastern districts likely to receive rainfall while some areas in eastern UP may continue to experience heatwave conditions. Rajasthan is also expected to witness rain and thunderstorm activity in several districts.

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