Sudhir Kumar / New Delhi
The Lok Sabha today passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill 2025. The Bill seeks to amend the Insurance Act 1938, the Life Insurance Corporation Act, 1956 and the Insurance Regulatory and Development Authority Act, 1999. The bill is aimed at accelerating the growth and development of the insurance sector and ensuring better protection of policyholders.
It also proposes to improve the ease of doing business for insurance companies, and to bring transparency in regulation-making and to improve regulatory oversight over the sector.
Replying to the discussion, Finance Minister Nirmala Sitharaman said that the government launched several insurance schemes for the welfare of people. She said the government has also taken steps to strengthen the public sector insurance companies. She said, over 17 thousand crore rupees have been infused in the public sector insurance companies so that they can compete efficiently.
She said, FDI limits have been raised to provide better services to the people. The Minister said, insurance density, penetration and coverage registered remarkable growth in the last 11 years.
She highlighted that in the recent 56th GST Council meeting, the decision was taken to waive off GST from life and health insurance premiums. She said the GST council secretariat is monitoring complaints regarding GST cut benefits not being passed on to policyholders.
She said the government is taking steps to strengthen the regulatory mechanism of the insurance sector. The Minister highlighted the need to spread awareness about insurance among people.
Earlier, moving the Bill in the House, Finance Minister Nirmala Sitharaman said the Bill provides for better regulatory oversight, ease of compliance, and uninterrupted services by insurance intermediaries. She added that this Bill aims at bringing transparency, increasing FDI, and easing compliance-related issues.
The Finance Minister highlighted that the government has come up with several flagship programmes, like PM Jeevan Jyoti Bima Yojana, PM Suraksha Bima Yojana, PM Jan Arogya Yojana, and Krishi Bima Yojana, aimed at the poorest sections who cannot afford insurance.
She added that insurance was made accessible for all by keeping the premiums less. Ms Sitharaman stated that the government has also ensured that the public sector insurance companies can meet the insurance requirements of the people of the country.
D.M. Kathir Anand of DMK opposed the Bill and its clause of 100 per cent FDI in the insurance sector. He demanded the withdrawal of the Bill or referring it to the standing committee of the Parliament for scrutiny. BJP’s Konda Vishweshwar Reddy hailed the various insurance schemes launched under the leadership of Prime Minister Narendra Modi, including Pradhan Mantri Suraksha Bima Yojana.
Hitting back at Congress, he claimed that the penetration of health insurance was as low as one per cent during its tenure. Mr Reddy said, Congress always forgot to mention PV Narasimha Rao, who actually privatised and paved the way leading to an increase in penetration of insurance.
Opposing the Bill, N K Premachandran of RSP said, the Indian economy was saved during the global meltdown in 2008 due to strong public sector undertakings in the insurance and banking sectors. He alleged that through the legislation, the Government is privatising the insurance sector.
After completing the business, the House was adjourned for the day.