Cabinet approves amendment to Insurance Act, 1938 to increase FDI limit to 74% from current 49%

The Union cabinet has approved an amendment to the Insurance Act, 1938 to increase the permissible foreign direct investment (FDI) limit in insurance sector to 74 percent.
Currently, the FDI limit in the life and general insurance is 49 percent with ownership and management control with Indian.
The new rule will allow foreign ownership and control with safeguards, and also provide insurance companies with committed funds to improve the penetration of insurance in the country.
Prior to this, in 2015, the government hiked the FDI cap in the insurance sector from 26 percent to 49 percent.