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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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EC issues notice to Mallikarjun Kharge over terrorist remark against PM Modi

The Election Commission has issued a notice to Mallikarjun Kharge over his remark on PM Modi, asking for a response within 24 hours amid a growing political controversy.

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mallikarjun-kharge

The Election Commission has issued a notice to Congress president Mallikarjun Kharge over his controversial remark referring to Prime Minister Narendra Modi as a “terrorist” during an election campaign.

Taking serious note of the statement, the poll body has asked Kharge to submit his response within 24 hours, highlighting concerns over the language used in public campaigning.

BJP complaint triggered action

The development comes after the Bharatiya Janata Party approached the Election Commission, alleging that the remark violated the Model Code of Conduct. The party described the comment as derogatory and sought strict action against the Congress leader.

A delegation of BJP leaders also met the poll panel, stressing that such statements undermine the standards of political discourse during elections.

Kharge’s clarification

Following the controversy, Kharge clarified that his remarks were being misinterpreted. He said he did not intend to call the Prime Minister a terrorist but was referring to what he described as “terrorising” political opponents through the use of central agencies.

Rising political tensions

The episode has further escalated tensions between the ruling party and the opposition amid an ongoing election season. Leaders across the political spectrum have reacted strongly, with criticism and counter-criticism intensifying the debate around campaign rhetoric.

The Election Commission’s intervention underscores its attempt to maintain decorum and enforce campaign norms as political activity intensifies across states.

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Noida workers protest under probe as X Storm social media group comes under scanner

Probe into Noida workers protest highlights suspected role of ‘X Storm’ social media group and digital coordination behind the unrest.

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Authorities have intensified their investigation into the recent workers’ protest in Noida, with a social media network known as “X Storm” now emerging as a key focus in the probe.

The unrest, which began as a demonstration over wage-related concerns, escalated into violence in parts of the industrial hub, prompting a wider inquiry into the factors behind the mobilisation of large groups of workers.

According to officials, investigators are examining how digital platforms may have been used to coordinate the protests. Preliminary findings suggest that multiple online groups and accounts played a role in rapidly mobilising participants and spreading messages related to the agitation.

The role of social media has come under particular scrutiny, with authorities looking into whether organised efforts were made to amplify tensions. Officials are also probing the origin of messages circulated online and the possible involvement of coordinated networks.

Recent findings indicate that such protests may not have been entirely spontaneous. Investigations in similar cases have revealed the use of newly created social media accounts, messaging platforms, and closed groups to mobilise crowds quickly and maintain anonymity.

Additionally, concerns have been raised about external elements potentially influencing the protests. Earlier reports have pointed to the involvement of non-worker participants and coordinated digital campaigns that may have contributed to the escalation of violence.

The Noida protest is part of a broader wave of labour unrest driven by demands for higher wages and improved working conditions. The demonstrations turned violent in some areas, with incidents of stone pelting, arson, and clashes with police reported during the peak of the agitation.

Authorities are now focusing on tracing digital footprints, identifying administrators of online groups, and determining whether there was any larger network orchestrating the unrest.

The investigation remains ongoing, with officials stating that appropriate action will be taken based on the findings.

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Rahul Gandhi’s Bengal poll visit cancelled amid permission row, Congress targets Trinamool

Rahul Gandhi’s Bengal visit was cancelled after authorities did not grant permission, triggering a political row between Congress and Trinamool.

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Rahul-Gandhi

Congress leader Rahul Gandhi’s scheduled visit to West Bengal for election campaigning has been cancelled after the party failed to secure the required administrative permission for public events.

The visit, planned for April 23, was called off after the party waited until the evening for clearance but did not receive approval in time to make necessary arrangements.

Congress leaders have alleged that the local administration, under the influence of the ruling Trinamool Congress, did not grant permission for the rally. The party claimed that despite waiting until around 6 pm, the approval did not come through, forcing them to cancel the programme.

Trinamool response

The Trinamool Congress rejected the allegations, stating that all political parties must follow established procedures for holding public meetings. A party minister said applications must be submitted through the designated system within a specified time frame before events.

The Trinamool also indicated that the state government is currently in a caretaker role during the election period, suggesting that questions regarding permissions fall under the purview of the Election Commission.

Fresh dates likely

Congress sources said the party is still keen for Rahul Gandhi to campaign in the state and may seek fresh permission for a visit on April 25 or 26.

Political context

The development comes amid heightened political activity ahead of the 2026 West Bengal Assembly elections, where multiple parties are campaigning aggressively. The Congress and Trinamool Congress, despite being part of broader opposition alignments at the national level, remain direct rivals in the state.

Recent reports also indicate that permission-related issues have affected campaign events in the state, with some rallies being cancelled due to lack of police clearance.

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