The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025
Parliament approved the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025 in
December 2025, amending the Insurance Act, 1938, the General Insurance Business (Nationalisation) Act,
1972, and the IRDA Act, 1999. Its headline change raises the permissible foreign direct investment in
Indian insurance companies to up to 100 percent, from the earlier 74 percent ceiling, subject to
conditions the government and IRDAI are expected to prescribe separately. Other changes reported in
industry commentary include expanded IRDAI powers to disgorge wrongful gains from insurers and
intermediaries with rationalised penalties, a reduction in the minimum Net Owned Fund required for
foreign reinsurance branches (reported as dropping from five thousand crore to one thousand crore
rupees), a shift toward one-time licensing and suspension (rather than automatic cancellation) for
intermediaries, a higher threshold before certain share transfers require regulatory approval, and a
dedicated Policyholders' Education and Protection Fund. This platform flags that the precise date of
Presidential assent, the notification bringing specific provisions into force, and the detailed rules
IRDAI is expected to frame under the amended Act were not independently confirmed at the time of writing,
and recommends checking the current status on IRDAI's official notifications before treating any specific
provision as already operative.
Bima Sugam: the electronic insurance marketplace
IRDAI has been developing Bima Sugam, described as a unified electronic marketplace intended to let
consumers compare, buy, renew, service, and claim across life, health, motor, and other insurance
products from participating insurers on a single platform, alongside a portable digital policyholder
identity. After missing earlier target dates, the Bima Sugam India Federation launched an informational
website in September 2025, with a phased platform rollout -- including e-KYC and an initial set of
products -- reported as beginning in the following months and fuller transactional capability expected
to follow through 2026. This platform treats Bima Sugam's actual public launch date, product coverage,
and any NRI-specific features (such as whether it will support KYC processes suited to non-resident
applicants) as unconfirmed until the marketplace is actually operational, and recommends checking IRDAI's
and Bima Sugam's own official communications for the current status before relying on any specific
feature being live.
Tracing unclaimed insurance amounts
Industry reporting has cited unclaimed amounts held by life insurers in India at over twenty thousand
crore rupees as of recent financial years, arising from matured policies, death claims where the nominee
was never traced, or premium refunds that were never collected -- a scenario NRI families are
particularly exposed to, since a policyholder's move abroad, a nominee's relocation, or simple loss of
contact with the insurer over the years can each independently cause a valid claim to sit unclaimed.
Insurers are required to publish lists of unclaimed amounts on their own websites, and policyholders or
heirs can also approach an insurer directly with the deceased's or original policyholder's details (name,
date of birth, policy number if known, or PAN) to check for unclaimed amounts. This platform recommends
that families settling an Indian estate, particularly where the deceased spent time working or living
abroad, specifically check each insurer the deceased is known to have dealt with, since these amounts are
not automatically searched for or paid out and generally require an affirmative claim.
Common mistakes people make with insurance reforms and unclaimed amounts:
- Assuming 100% FDI in insurance is already fully implemented the moment the bill was passed by
Parliament -- Presidential assent, notification, and implementing rules are separate, subsequent
steps that should be confirmed.
- Never checking insurers directly for unclaimed policy amounts when settling an estate, especially
where the deceased lived or worked abroad for long periods.
- Assuming Bima Sugam is already a fully functional marketplace -- as of the information available
to this platform, it was in a phased rollout rather than fully operational.
