LIC says proposed amendments in ‘Sabka Bima Sabki Raksha’ bill will expand its reach and leverage technology at scale

The bill, which amends three laws relating to the insurance sector – the Insurance Act, 1938, the Life Insurance Corporation Act, 1956, and the Insurance Regulatory and Development Authority Act, 1999 – was passed by Parliament on December 18. | Photo credit: REUTERS/Dado Ruvic

The above-mentioned bill, which amends three laws relating to the insurance sector – the Insurance Act, 1938, the Life Insurance Corporation Act, 1956, and the Insurance Regulatory and Development Authority Act, 1999, was passed by Parliament on December 18.

The Corporation highlighted in a statement that these legislative changes came on the heels of the plethora of full VAT exemptions for all individual policies.

“As India strives to become a developed economy by 2047, the insurance sector will play a critical role in protecting households, mobilizing long-term savings and supporting economic stability. The ‘Sabka Bima Sabki Raksha’ Bill is a forward-looking reform that underlines the government’s commitment to building a safe, inclusive and resilient insurance ecosystem – one that ensures that every Indian is protected from life’s uncertainties,” it said. statement.

In line with national objectives

LIC noted that the bill addresses the need for a modern, flexible and inclusive regulatory architecture that meets the country’s long-term development priorities. Furthermore, the changes proposed in these bills are timely and necessary to support the national mission of “Insurance for All” by 2047.

LIC emphasized that a major strength of the bill lies in the emphasis placed on policyholder protection and regulatory robustness.

“By updating outdated provisions and strengthening governance standards, the amendments strengthen transparency, accountability and prudential supervision across the insurance ecosystem,” LIC said.

For policyholders, this translates into stronger guarantees, improved service standards and greater confidence in long-term insurance commitments – a key factor in an industry built on trust – it added.

Under the bill, LIC has been given the autonomy to open zonal offices in the country and bring its foreign offices into compliance with the laws and regulations of their respective jurisdiction.

Published on December 18, 2025