LIC welcomes Sabka Bima Sabki Raksha Bill

New Delhi, Dec 19: The Life Insurance Corporation of India (LIC) has welcomed the passage of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, describing it as a major step towards deepening insurance penetration and strengthening policyholder protection across the country.

A statement said that the legislation amends the Insurance Act, 1938, the LIC Act, 1956 and the Insurance Regulatory and Development Authority Act, 1999, with the aim of creating a modern and inclusive regulatory framework aligned with the national vision of “Insurance for All by 2047”.

Welcoming the Bill in Parliament, Finance Minister Nirmala Sitharaman underlined the need to expand insurance awareness and coverage, saying greater awareness would help citizens protect themselves against risks and ensure timely settlement of rightful claims.

A key feature of the Bill is the establishment of a Policyholders’ Education and Protection Fund, to be financed through penalties imposed by the Insurance Regulatory and Development Authority of India (IRDAI). The fund will be used to promote policyholder education, awareness and consumer protection.

The enhanced role envisaged for IRDAI, including mandatory public consultations and standard operating procedures for regulation-making, is aimed at ensuring transparency, consistency and robust regulatory oversight.

LIC said the reforms reaffirm its mandate as a trusted national institution and will help it further expand coverage across geographies and income segments. The changes come soon after the full GST waiver on individual life insurance policies, providing additional relief to policyholders.

The Bill is expected to play a key role in building a secure, inclusive and resilient insurance ecosystem as India moves towards its 2047 development goals.