New Delhi, February 11 The Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry has notified 100 per cent foreign direct investment (FDI) in the insurance sector following the enactment of legislation in this regard.
The Government of India has reviewed the existing FDI policy for the insurance sector and has incorporated amendments under the Consolidated FDI Policy of 2020, as amended from time to time, DPIIT said in a notification.
According to Press Note No. 1 (2026 Series), 100 per cent FDI is allowed in insurance companies under the automatic route.
In the case of the Life Insurance Corporation of India, only 20 per cent is permitted through the automatic route.
In an Indian insurance company with foreign investment, at least one among the chairperson of its board, its managing director, and its chief executive officer, shall be resident Indian citizens, it said while specifying other conditions.
The Parliament passed the "Sabka Bima Sabki Raksha (amendment of insurance laws)" Bill, 2025, in December. Subsequently, after the President's assent, the Bill became law.
The government notified February 5, 2026, as the date for the enforcement of most provisions of the "Sabka Bima Sabki Raksha (amendment of insurance laws)" Act, 2025.
The regulations include governance, capital participation (including 100 per cent FDI), policyholder protection measures, and institutional oversight, which will become operational immediately, while Section 25 has been kept out of the first phase of implementation.
