New Delhi, Dec. 13 -- The Union Cabinet on Friday approved a bill that allows 100% foreign direct investment in the insurance sector, up from the current 74%, provided the entire premium collected is invested within the country, in a move that is expected to increase the reach of insurance in India, and also make more money available for infrastructure projects.

HT learns that the Insurance Laws (Amendment) Bill, 2025 could be announced in Parliament next week itself. The increase in FDI was mentioned by the finance minister in her budget speech this year.

The proposed 100% FDI in the sector will give significant freedom to foreign companies in managing affairs of their firms with adequate safeguards which will be part of the rules fram...