The Winter session of Parliament starting on December 1 may see passage of a few economic Bills, most notably those pertaining to insurance reforms and fast-tracking of the insolvency resolution process, according to official sources.
The Centre is likely to seek Parliament’s approval for the Insurance (Amendment) Bill, which seeks to allow 100% foreign direct investment (FDI) in the sector. It will also push for amendments to the Insolvency and Bankruptcy Code (IBC) to bring in creditor-led and group insolvency mechanisms among several other key changes, the sources said.
The government announced on Saturday that the Winter Session of the Lok Sabha and Rajya Sabha will run for 15 working days, from December 1 to 19—a schedule that immediately drew Opposition criticism for being “unusually delayed and truncated.”
Raising the FDI limit from 74% to 100% for insurance companies is expected to unlock the sector’s untapped potential, which, as per government estimates, is set to grow at 7.1% annually over the next five years. This hike will eliminate the need for foreign investors to secure Indian partners for the remaining 26%, simplifying operations and leading to proliferation of insurers in the country.
Beyond the FDI increase, the Bill introduces composite licensing—allowing a single entity to offer life, general, or health insurance. It also relaxes restrictions on dividend repatriation and key management personnel for foreign-owned firms, further enhancing ease of doing business.
The government believes the sector needs capital inflows to expand and boost insurance penetration. Removing the FDI cap will draw stable, long-term foreign investment, heighten competition, enable technology transfer, and deepen market reach.
On the IBC front, the relevant Bill introduces new mechanisms to address gaps in the current framework, including creditor-initiated insolvency resolution process (CIIRP), group insolvency, and cross-border insolvency. Under CIIRP, financial creditors holding 51% of the debt can trigger a resolution while keeping the existing management in place under their supervision—making it quicker and less disruptive than a full CIRP.
The Bill, which has been vetted by a Select Committee, targets key bottlenecks to expedite proceedings and handle complex cases. For instance, it mandates the National Company Law Tribunal (NCLT) to admit a financial creditor’s insolvency application within 14 days if default is proven, stripping away judicial discretion that often causes delays.
THe Select Committee, headed by Baijayant Panda, is expected to give its report soon; it elicited public responses to the Bill last month.
To ensure fairness and curb abuse, the Bill clarifies that government dues will no longer be treated as “secured” debts. It also imposes heavy penalties for frivolous or vexatious applications intended solely to stall the process.