- It amends the Insurance Act, 1938, the LIC Act, 1956, and the IRDA Act, 1999.
- Key Reform: Raises the FDI cap in insurance companies from 74% to 100%.
- Strengthens the powers of IRDAI to regulate and protect policyholders.
- Aims to boost insurance penetration and attract more foreign capital into India’s insurance sector.
- Expected to lower premiums, improve transparency, and enhance ease of doing business.
- Significance: A landmark step in India’s financial reforms, expanding access to insurance for all citizens.
Question:
Q.1What is the key reform introduced by the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025?a) Reduction in insurance premiums
b) Increase in IRDAI tenure
c) Raising FDI cap in insurance companies to 100%
d) Merger of LIC with private insurers
Answer: c) The Bill raises the foreign direct investment limit in insurance companies from 74% to 100%, as stated in the context.
