New Delhi, Dec. 17 -- Enhancing foreign direct investment limit to 100% will enable global insurance companies to inject substantial capital directly without waiting for domestic partners, Union finance minister Nirmala Sitharaman told the Lok Sabha on Tuesday as the House passed the insurance bill seeking to remove a cap foreign investments along with the introduction of over a dozen key sectoral reforms. "If there's a need for growing protection through insurance in this country, we need to have insurance more accessible," she said while replying to an intense debate on the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025. Citing investors' feedback, she said the current FDI cap at 74% is an impediment for global firms because searching for a suitable Indian partner to match the balance 26% equity contribution is a "mammoth" effort. "Now, by doing this we are able to bring them into the country directly," the minister said, adding that they are, however, subject to all the Indian laws passed by Parliament. To be sure, India has very low policy coverage and in September, the 56th Goods and Services Tax Council removed the 18% GST on individual health and life insurance premiums to enhance insurance penetration. Sitharaman highlighted over a dozen key features of the bill. Her first point was related to a policy holders' education and protection fund to spread insurance awareness among people both in terms of coverage as well as receiving their dues. The second feature of the bill is to ensure "better regulatory oversite" to ensure companies' conduct in insurance business in an orderly and transparent manner. Third is the introduction of a one-time registration for insurance intermediaries to ensure uninterrupted service to citizens, she said. It will promote ease of doing business for service providers and reduce regulatory delays, she added. Her fourth point was related to inflow of foreign capital that will also bring world-class risk assessment techniques and global best practices along with innovative insurance products. Another feature of the bill is "standardising the regulation-making process" by introducing standard operating procedure (SOPs) with a "mandatory" public consultation, the FM said. The other feature of the proposed law is introducing suspension of intermediary licences instead of their termination so that such entities could have time to correct themselves and continue serving citizens. The bill also has provisions for merger of a non-insurance company with an insurance firm. This would promote a "simplified" corporate structure, she said. Regulator has been also empowered through this bill for "disgorging wrongful gains" and compensating the victim, she added. Sitharaman said the bill also raises the cap for prior regulatory approval for transfer of share capital from 1% to 5%. It aims to reduce compliance burden, she added. The other feature is the reduction of the net-owned fund requirement for foreign reinsurance branches from Rs.5,000 crore to Rs.1,000 crore....