New Delhi, Dec. 13 -- The Union Cabinet chaired by Prime Minister Narendra Modi has cleared the decks for 100% foreign direct investment (FDI) in the insurance sector by giving its nod for the Bill seeking to completely open the sector, multiple media reports said.

In line with an earlier announcement by Finance Minister Nirmala Sitharaman in her Budget 2025 speech, the Bill has proposed amendments to various provisions of the Insurance Act, 1938, including raising FDI in the insurance sector to 100%.

In her Budget speech in February this year, Sitharaman had said that the enhanced FDI limit in insurance will be available for those companies which invest the entire premium in India. She had also promised to review and simplify existing ...