Members of the Rajya Sabha during the winter session of Parliament on December 17, 2025. | Photo credit: PTI
A day after it was passed by the Lok Sabha, the Rajya Sabha on Wednesday (December 17, 2025) passed the Sabka Bima Sabki Raksha (Amendment to Insurance Laws) Bill, which allows 100% foreign direct investment (FDI) in the insurance industry. The Upper House also passed the Repeal and Amendment Bill, which repeals 71 outdated laws. The Lok Sabha passed both the bills on Tuesday (December 16, 2025).
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The structure of insurance regulation is very clear in the bill and premiums collected from Indians by foreign insurance companies will remain in the country, Union Finance Minister Nirmala Sitharaman said in response to a debate on the bill.
Private sector insurance companies have participated in all social security schemes of the Union government and the bill would ensure that foreign companies also participate in social sector activities and government schemes, Ms. Sitharaman said. “We don’t give them any room to shirk that responsibility,” she said.
Increasing the FDI limit to 100% would ensure that more foreign companies invest in India as in many cases they are unable to find joint venture partners for various reasons, the minister said. With more companies, competition will increase and premiums should drop, she said.
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Earlier in the debate, the opposition demanded that the bill be sent to a select committee of Parliament due to the far-reaching impact it has on the insurance industry.
Opening the debate, senior Congress MP Shaktisinh Gohil said the new law posed a threat to data privacy as foreign companies would require PAN and Aadhaar cards of their customers, which could lead to digital fraud. The Center should learn from the experience of privatizing the civil aviation sector, Mr. Gohil said, and urged that the Bill be referred to a select committee.
Saket Gokhale of the All India Trinamool Congress (TMC), who has questioned the use of two languages, Hindi and English, also said on behalf of the bill that the bill opened the door to profiteering by foreign companies.
Once the law is implemented, the $600 billion market share will go to foreign investors, Kanimozhi NVN Somu of the Dravida Munnetra Kazhagam (DMK) said. “This is daylight robbery. The government should not waste opportunities to promote and strengthen its own PSUs (Public Sector Undertakings), but this government is favoring foreign investors and burdening our own insurance companies through this law,” Ms Kanimozhi said.
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The Rajya Sabha also passed the Repeal and Amendment Bill. The bill would remove 71 outdated laws, correct errors that crept in during the law-making process and remove discriminatory aspects of some laws, Union Law Minister Arjun Ram Meghwal said. “We prefer easy life and easy business,” said the minister. “These reforms are a step towards liberation from the colonial mindset,” he added.
The bill seeks to repeal 71 laws, including the Indian Tramways Act, 1886; the Levy Sugar Price Equalization Fund Act, 1976; Bharat Petroleum Corporation Limited (Determination of Conditions of Service of Employees) Act, 1988; General Clauses Act, 1897; Code of Civil Procedure, 1908; and the Indian Succession Act, 1925.
Published – 17 Dec 2025 21:01 IST
