The Insurance Amendment Bill, which aims to increase foreign direct investment (FDI) in the insurance sector to 100%, is expected to be introduced in the upcoming Budget session of Parliament.

The finance ministry is planning to make several changes to the Insurance Act of 1938, including reducing paid-up capital and allowing for a composite license.

The Department of Financial Services (DFS) has invited public comments on these proposed amendments by December 10, as part of the second round of consultations on changes to the Insurance Act, the Life Insurance Corporation Act of 1956, and the Insurance Regulatory and Development Authority Act of 1999.

Currently, the FDI limit in Indian insurance companies is 74%, and the proposed changes aim to attract more foreign investment in the sector.

The ministry had previously sought public feedback on these amendments in December 2022, demonstrating the ongoing efforts to modernize and strengthen the regulatory framework governing the insurance industry.