India notifies 100% FDI in insurance sector under automatic route – CNBC TV18

The Division for Promotion of Trade and Inner Commerce (DPIIT) under the Commerce and Trade Ministry has notified 100% international direct funding (FDI) in the insurance sector following the enactment of laws in this regard.

The Authorities of India has reviewed the extant FDO coverage on insurance sector and has made the amendments under the Consolidated FDI Coverage of 2020, as amended infrequently, the DPIIT stated in a notification.

As per the Press Word No. 1 (2026 Collection), 100% FDI is allowed in the insurance firms under automatic route.

In case of Life Insurance Company of India, solely 20% is permitted via automatic route.

In an Indian insurance firm having international funding, a minimum of one among the many chairperson of its board, its managing director and its chief government officer, shall be resident Indian residents, it stated whereas specifying different situations.

Parliament handed Sabka Bima Sabki Raksha (modification of insurance legal guidelines) Invoice, 2025, in December. Subsequently, after the President’s assent, the Invoice grew to become regulation.

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The federal government notified February 5, 2026, because the date for enforcement of most provisions of the Sabka Bima Sabki Raksha (modification of insurance legal guidelines) Act, 2025.

The laws embody governance, capital participation (together with 100% FDI), policyholder safety measures and institutional oversight, which is able to change into operational instantly, whereas Part 25 has been saved out of the primary part of implementation.