<h1>Foreign investment in insurance raised to 100% to attract capital and boost competition while strengthening policyholder protections.</h1> The amendment raises the foreign direct investment limit in the insurance sector to 100 per cent to attract capital, technology and competition; permits mergers between non insurance companies and insurers; reduces the net own fund requirement for foreign reinsurance branches to Rs 1,000 crore; increases regulator penalties to Rs 10 crore for insurers and intermediaries; provides a Policyholders' Education and Protection Fund and regulator power to disgorge wrongful gains; and grants greater operational autonomy to a major public insurer.