Government considers ₹5,000 crore capital infusion for three public sector insurance companies as losses resurface.

Key Provisions:

  • 100% Foreign Direct Investment (FDI) in insurance intermediaries
  • Enhanced powers to the Insurance Regulatory and Development Authority of India (IRDAI)
  • Implications for the Indian insurance sector

100% FDI:

  • Allows full foreign ownership in insurance intermediaries such as brokers, third-party administrators, and surveyors
  • Expected to attract more foreign investment into the sector

IRDAI Powers:

  • IRDAI to have more regulatory control over the insurance sector
  • Powers to regulate and supervise insurance companies, intermediaries, and other stakeholders
  • Ability to impose penalties and take enforcement actions against non-compliant entities

What It Means for India:

  • Increased foreign investment in the insurance sector
  • Enhanced regulatory framework for the insurance industry
  • Potential for increased insurance penetration and density in India
  • Improved consumer protection and dispute resolution mechanisms
  • Opportunities for growth and development of the Indian insurance market

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On October 8, 2025, insurance agents and associations are likely to raise the issue of Goods and Services Tax (GST) with the Insurance Regulatory and Development Authority of India (IRDAI) and the Finance Ministry.

On October 8, 2025, insurance agents and associations are likely to raise the issue of Goods and Services Tax (GST) with the Insurance Regulatory and Development Authority of India (IRDAI) and the Finance Ministry.

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