Understanding the Insurance Amendment Act 2025

The Insurance Amendment Act 2025 brings significant reforms: Increased FDI limit from 74% to 100%, mandatory grievance redressal within 30 days, simplified policy wordings in regional languages, penalty of ₹1 Crore for claim delays, mandatory AI-based claim assessment, digital-first policy issuance, enhanced policyholder protection fund, new categories of micro-insurance products, mandatory corporate governance norms for insurers, and establishment of Insurance Consumer Protection Council.