On 17 December 2025, Parliament passed the Insurance Amendment Bill 2025. The law updates India’s insurance framework for a digital era. It focuses on consumer protection, data security, and sector growth. The changes affect every insurance customer nationwide.

BulletsIn

•  Bill passed by Parliament on 17 December 2025
•  Allows 100% Foreign Direct Investment in insurance
•  Ends mandatory joint ventures with Indian partners
•  Insurers must keep verified, accurate customer records
•  Responsibility of data accuracy shifts to insurers
•  Strong limits placed on sharing policyholder data
•  Customer consent required for most data disclosures
•  Mandatory transparency in claim rejection reasons
•  Push for digital-only policies and claim records
•  Heavy penalties for rule violations by insurers