New Bill seeks to expand definition of health insurance
The New Indian Express Chennai
|December 16, 2025
THE Insurance (Amendment) Bill - Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025 - which the government is set to introduce in Parliament, has redefined health insurance business. It has expanded the definition of health insurance to include sickness benefits, payment of medical expenses, personal accident insurance covering death, disablement or hospitalisation due to accidents, and travel insurance covering sickness benefits, medical expenses or losses incurred during travel. It has also inserted a new comprehensive definition for "insurance business".
The Bill has introduced several measures aimed at boosting investment and growth in the insurance sector, including allowing 100% foreign direct investment (FDI). It permits aggregate equity holding by foreign investors, including portfolio investors, in an Indian insurance company to be increased up to 100% of the paidup equity capital.
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