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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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Captain Sumit Kapoor was not scheduled to fly Ajit Pawar plane on crash day, friends say

Captain Sumit Kapoor, who died in the plane crash that killed Ajit Pawar, was not scheduled to fly the aircraft and had filled in for another pilot delayed by traffic, friends said.

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Captain sumit kapoor

Captain Sumit Kapoor, one of the five people killed in the plane crash that claimed the life of Ajit Pawar in Baramati, was not originally assigned to operate the flight, according to his friends. They said Kapoor had stepped in at the last moment after another pilot was delayed due to traffic.

Speaking during Kapoor’s funeral in Delhi, his friends said the veteran pilot had returned from Hong Kong just a few days earlier and received instructions to fly the aircraft only hours before the incident. He was tasked with flying Pawar from Mumbai to Baramati for election-related engagements.

The Learjet 45, operated by a Delhi-based aviation company, took off at around 8 am with Pawar and three others on board. The aircraft crashed around 8:45 am while attempting a second approach to Baramati Airport.

All five people on board died in the crash. The victims included Captain Kapoor, co-pilot Captain Shambhavi Pathak, flight attendant Pinky Mali, and Pawar’s security guard Vidip Jadhav.

Sources familiar with the early stage of the investigation said a preliminary probe pointed to a possible pilot misjudgement during landing amid poor visibility. Technical issues are also being examined as part of the ongoing inquiry.

However, Kapoor’s friends rejected suggestions of pilot error, saying he was highly experienced and deeply committed to flying. They stressed that the likelihood of him making a serious mistake was minimal and called for a thorough and transparent investigation into the crash.

Remembering Kapoor, his friends described him as a kind and dedicated professional who loved flying. They said aviation ran in his family, with both his son and son-in-law also working as pilots. Kapoor is survived by his son and daughter, both married, and a brother who runs a business in Gurugram.

One of his friends said Kapoor’s body was identified by a bracelet he was wearing, while another said the news of his death was difficult to accept. A close associate also recalled speaking to Kapoor after his return from Hong Kong, during which the pilot had advised him to take special care of his health.

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Ajit Pawar aimed to reunite NCP factions as goodwill gesture to Sharad Pawar

Ajit Pawar wanted to reunite the two NCP factions as a birthday gesture for Sharad Pawar, but the plan did not take shape, NCP (SP) leader Ankush Kakade revealed.

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Sharad pawar ajit pawar

Ajit Pawar had attempted to bring together the two factions of the Nationalist Congress Party (NCP) last month as a goodwill gesture to his uncle Sharad Pawar on his birthday, but the effort did not succeed, according to NCP (SP) leader Ankush Kakade.

Speaking while paying tribute to the late Maharashtra deputy chief minister, Kakade said Pawar had personally asked him and other senior leaders to help initiate reconciliation talks between the divided factions of the party.

Efforts to reunite NCP before December 12

Kakade said Ajit Pawar had reached out to leaders including Vitthal Sheth Maniar and Srinivas Patil, citing their close association with Sharad Pawar, and urged them to act as intermediaries.

Recalling the conversation, Kakade said Ajit Pawar had expressed his wish for both factions to come together on December 12, Sharad Pawar’s birthday. Although the plan did not materialise at the time, Pawar had indicated that the process could be revisited after elections.

However, the reunion effort remained incomplete, Kakade noted, adding that Pawar was keen on preserving and strengthening the political legacy built by Sharad Pawar.

Ajit Pawar remembered for handling party legacy

Reflecting on his political journey with Ajit Pawar, Kakade said he would always remember how the leader managed internal challenges while remaining mindful of the senior Pawar’s stature within the party.

Ajit Pawar died on Wednesday along with four others when their aircraft crashed near the tabletop runway at Baramati airport in Pune district. Officials said the aircraft caught fire during a second landing attempt amid poor visibility.

Those who lost their lives in the crash included two pilots, Pawar’s personal security officer and a flight attendant.

Leadership questions emerge after Pawar’s death

Following his death, attention has shifted to the future leadership of the NCP. Party voices are calling for Ajit Pawar’s wife, Sunetra Pawar, currently a Rajya Sabha MP, to take charge as party president and legislative leader.

Sources indicated that if this option faces political or procedural hurdles, senior leader Praful Patel may be considered for the role.

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Delhi SWAT commando killed by husband, brother hears chilling final call

A Delhi Police SWAT commando was allegedly beaten to death by her husband while pregnant, with her brother hearing her final moments during a chilling phone call.

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A 27-year-old Delhi Police Special Weapons and Tactics (SWAT) commando was allegedly beaten to death by her husband at their West Delhi residence, with her brother hearing her final moments during a phone call that has since become a key part of the investigation.

The victim, Kajal Chaudhary, was four months pregnant when she was assaulted on the night of January 22 at the couple’s rented home in Mohan Garden Extension. Police have arrested her husband, Ankur, a clerk posted with the Ministry of Defence at Delhi Cantonment, and registered a case of murder.

Brother hears assault during call

Kajal’s brother, Nikhil, a constable posted at Parliament Street Police Station, said he received a call from Ankur that night asking him to “make his sister understand”. When Nikhil spoke to Kajal separately, she began sharing details of ongoing issues at home.

During the conversation, Ankur allegedly snatched the phone from her and asked Nikhil to keep the call on recording, claiming it would serve as police evidence. Nikhil said he then heard his sister screaming before the call abruptly disconnected.

Minutes later, Ankur allegedly called again and informed him that Kajal had died, asking the family to come to the hospital.

Assault led to death days later

According to the FIR, Kajal was struck on the head from behind with a heavy dumbbell between 10 pm and 10.30 pm. Her family has alleged that she suffered multiple injuries across her body.

She was taken to a hospital in Ghaziabad, where she remained under treatment before succumbing to her injuries on January 27. Police arrested Ankur within hours of her death.

Dowry harassment allegations

Kajal’s family has accused her in-laws of persistent dowry harassment. Her parents claimed they had given expensive gifts, including a motorcycle, gold jewellery and cash at the time of marriage, but the demands allegedly continued.

Her mother alleged that Kajal had taken a loan for her in-laws, while her father said the family was pressured even after a car was arranged later. The family also claimed that communication with Kajal had become restricted.

Past violence and domestic workload

Nikhil said his sister had been slapped by her husband about five months ago, following which he had asked her to return home. He alleged that Ankur had apologised at the time and promised not to repeat the violence.

Despite being pregnant and working in a demanding police role, Kajal was allegedly expected to handle household chores, including cooking and cleaning, after returning from duty.

Marriage and family

Kajal and Ankur met while studying in college in Panipat and got married in November 2023. After repeated disputes at their native home in Ganaur, Haryana, they shifted to a rented house in West Delhi in December 2024, but tensions reportedly continued.

The couple has a one-and-a-half-year-old son, who is now with Kajal’s parents.

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