| Aspect | Details |
|---|---|
| Official Title | Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025 |
| Date of Passage | Passed by Parliament on 17 December 2025 |
| Objective | Modernize India's insurance laws to align with digitization, improve consumer rights, and expand insurance coverage under "Insurance for All" vision. |
| Key Change 1: FDI Liberalization | 100% Foreign Direct Investment (FDI) allowed in insurance companies (previously capped at 74%). Aims to boost competition, global best practices, and innovation. |
| Key Change 2: Policyholder Records | Insurers must maintain verified records (name, DOB, Aadhaar/PAN, nomination details) to reduce claim rejections due to data errors. |
| Key Change 3: Data Accuracy & Security | Burden of proof on insurers--must ensure data is accurate, updated, and secure. Claim disputes due to incorrect data cannot easily be blamed on customers. |
| Key Change 4: Privacy Protection | Strict limits on sharing KYC data--insurers cannot sell/share data except for legal requirements, public interest, or explicit consent. |
| Key Change 5: Claim Rejection Transparency | Insurers must document reasons for claim rejections, settlement dates, and maintain records for accountability. |
| Key Change 6: Digital Policies | Mandates electronic policy issuance & claim records for easier access, faster tracking, and reduced paperwork. |
| Key Change 7: Penalties | Stricter fines: ₹1 lakh/day (capped at ₹10 crore) for non-compliance, ₹1 crore for unregistered intermediaries. Strengthens IRDAI's enforcement. |
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