India Expands Insurance FDI to 100%, Boosts Social Security Schemes

In a landmark reform aimed at strengthening India’s insurance and social security landscape, the Union Government has announced an increase in Foreign Direct Investment (FDI) in Indian insurance companies from 74% to 100%. The move, revealed in the Union Budget 2025, is expected to draw significant global capital into India’s insurance sector, enabling companies to expand their reach and strengthen financial inclusion.

The announcement was accompanied by renewed emphasis on the government’s flagship universal and affordable social security initiatives, particularly for the poor, underprivileged, and vulnerable communities across India.

Flagship Insurance Schemes for All Citizens

The government has launched several low-cost, high-impact insurance schemes designed to ensure broad-based coverage across age groups, income levels, and occupations. These schemes are accessible to all eligible Indian citizens, including SC, ST, and OBC communities.

• Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) Provides ₹2 lakh life insurance coverage for individuals aged 18–50 years in case of death due to any reason, at a low annual premium of ₹436.

• Pradhan Mantri Suraksha Bima Yojana (PMSBY) Offers ₹2 lakh coverage in case of accidental death or total permanent disability and ₹1 lakh for partial permanent disability, available to individuals aged 18–70 years, at a premium of just ₹20 per annum.

• Pradhan Mantri Jan Arogya Yojana (PMJAY) Provides families with an annual health cover of ₹5 lakh for secondary and tertiary care hospitalization, making it one of the world’s largest publicly funded health insurance programs.

• Pradhan Mantri Fasal Bima Yojana (PMFBY) Protects farmers against crop losses caused by natural calamities. Premiums are capped at 2% for Kharif crops, 1.5% for Rabi crops, and 5% for commercial/horticultural crops, ensuring affordability for farmers.

Expanding Outreach and Coverage

To enhance the reach of PMJJBY and PMSBY, the government has initiated multiple campaigns and innovations:

• Financial Inclusion Saturation Campaign in 2.70 lakh Gram Panchayats and Urban Local Bodies (ULBs) beginning July 1, 2025, to spread awareness and boost enrollments.

• Launch of the Jansuraksha Portal (www.jansuraksha.gov.in), a centralized platform for all information and resources related to these schemes.

• Mobilization of a strong network of nearly 16 lakh Banking Correspondents (BCs) across the country, who serve as the last-mile link in the banking system and play a pivotal role in enrolling citizens.

Accountability and Monitoring

To ensure effective implementation, the government has directed banks to:

• Meet assigned coverage targets,

• Participate in grassroots campaigns, and

• Undergo regular performance reviews by the Ministry of Finance.

Such steps aim to guarantee that every eligible citizen, particularly those from socially and economically disadvantaged backgrounds, is brought under the protective umbrella of social security.

Stronger Social Security, Stronger India

Announcing these details in a written reply to the Lok Sabha, Minister of State for Finance Shri Pankaj Chaudhary reiterated that these reforms are central to building a comprehensive, inclusive, and affordable social security system.

The dual approach of 100% FDI in insurance and universal social insurance coverage is expected to not only fortify India’s financial architecture but also empower millions by reducing vulnerability to health, life, and livelihood risks.