The Insurance Act of 1938 is a law in India that regulates the relationship between an insurer, its policyholders, its shareholders, and the regulator (the Insurance Regulatory and Development Authority of India)12. It also consolidates and modifies the laws governing the business of insurance in the country. The act addresses registration, reinsurance, miscellaneous, and insurance company foreign investment2. The Insurance Act of 1938 was amended by the Insurance (Amendment) Bill of 2021. The bill aims to raise the maximum amount of foreign capital that can be invested in Indian insurance companies from 49 percent to 74 percent. On March 22, 2021, the Lok Sabha approved the bill.