India: Insurance Laws and Products

The West Asia conflict has exposed fundamental limitations in how force majeure operates during systemic supply chain disruptions.

The Indian insurance sector is at an inflection point. Parliament has passed a landmark amendment law. The regulator is readying a consultation paper on distribution reforms. The Government has set an ambitious mission of ‘Insurance for All by 2047’.

The package comprises two parallel tracks: (a) amendments to the master directions in relation to the undertaking of financial services applicable to each regulated entity respectively; and (b) amendments to the master directions governing responsible business conduct (RBC) applicable to each regulated entity respectively, which introduce comprehensive requirements on advertising, marketing, sale, and conduct, including an express prohibition on compulsory bundling, a codified mis-selling framework with mandatory refunds, and regulation of dark patterns.

Issued by the Department for Promotion of Industry and Internal Trade (“DPIIT”) in April 2020, Press Note 3 required prior Government approval for investments coming from countries sharing a land border with India, as well as investments where the beneficial owner was connected to such jurisdictions.

The Department for Promotion of Industry and Internal Trade, Ministry of Finance had, in February 2026, issued Press Note 1 (2026 Series) (“Press Note 1”) which proposed increasing the foreign investment cap...

In commercial insurance disputes in India, one practice continues despite attracting repeated judicial criticism. After a major loss, the insurer appoints a surveyor, the claim is assessed at a substantially reduced amount, and the insured, at times, is forced to sign a discharge voucher accepting a reduced amount towards “full and final settlement.”

The Government of India has, with effect from 5 February 2026, permitted 100% foreign direct investment (FDI) in Indian insurance companies and insurance intermediaries.

On 11 February 2026, the Reserve Bank of India (RBI) released draft amendments (Draft Amendments) to the RBI (Undertaking of Financial Services) Directions, 2025 (Financial Services Directions) and the RBI (Responsible Business Conduct) Directions, 2025 (Business Conduct Directions) for various RBI-regulated entities (REs).

In this podcast, our Partners, Sidharrth Shankar and Shivangi Sharma Talwar discuss the proposed amendments to the regulatory landscape and its impact on stakeholders and the Indian insurance sector.