LIC, Niva Bupa, ICICI Lombard, SBI Life Share Price Rise After Lok Sabha Clears Insurance Amendment Bill

Several insurance companies moved higher in early trade on Wednesday, December 17, after the Lok Sabha passed the Insurance Laws Amendment Bill. Stocks such as LIC, SBI Life, ICICI Lombard General Insurance and ICICI Prudential Life Insurance traded in the green during the morning session.

LIC, ICICI Group Stocks Lead Gains

Life Insurance Corporation of India (LIC) rose around 0.65% and touched an intraday high of ₹859.95 on the BSE. ICICI Lombard General Insurance emerged as the top gainer in the sector, climbing nearly 1.5% to ₹1,978.65. ICICI Prudential Life Insurance also gained over 1%, trading near ₹643.25.

Mixed Performance Among Other Insurers

Shares of Niva Bupa Health Insurance, SBI Life Insurance, Max Financial Services and Star Health Insurance posted mild gains. However, some stocks such as Go Digit, HDFC Life and Canara HSBC Life Insurance traded slightly lower in early deals.

Insurance Amendment Bill: Key highlights

The Insurance Laws Amendment Bill, introduced by Finance Minister Nirmala Sitharaman and approved by the Lok Sabha, brings several major changes. These include allowing 100% foreign direct investment in insurance, lowering the initial capital requirement for re-insurers, and permitting mergers between insurance and non-insurance entities.

The bill also raises approval limits for stake sales in insurance companies, gives the regulator more powers over commission payouts, offers greater operational flexibility to LIC, and allows LIC to create a reserve fund.

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Conclusion

The approval of the Insurance Amendment Bill has boosted sentiment across insurance stocks, with investors welcoming reforms such as 100% FDI and regulatory easing. If implemented smoothly, these changes could support long-term growth and stronger competition in India’s insurance industry.

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