Effective or announced 20 December 2025Impact for foreign investors: high
What changed
The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 received assent on 20 December 2025 and raised the FDI limit in Indian insurers from 74% to 100%. Press Note 1 of 2026 later placed it under the automatic route.
Who it affects
Foreign insurers and reinsurers holding minority stakes or planning entry, and investors in insurance intermediaries.
What to do
Review existing joint-venture terms in light of the higher limit. Note the conditions that continue to apply: IRDAI verification and a resident Indian citizen as chairperson, MD or CEO.