Insurance in India refers to the market for insurance in India which covers both the public and private sector organisations. The insurance sector has gone through a number of phases by allowing private companies to solicit insurance and also allowing foreign direct investment. Foreign Direct Investment is a direct investment into production or business in a country by an individual or company of another country either by buying company in the target country or by expanding operations of an existing business in that country. India allowed private companies in insurance after the enactment of Insurance Regulatory and DevelopmentAuthority Act 1999 (IRDA Act 1999). This Act permitted shareholding in insurance companies to the extent of 26%. The parliament has passed Insurance Laws (Amendment) Bill 2015. The Amendment Bill hikes FDI cap in the insurance sector to 49% from present 26 per cent.