Schedule I explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Serial number F.8 of the sectoral Table in Schedule I to the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 is the insurance entry. It was substituted as a whole in May 2026. It now has three lines of cap and route (insurance companies, the Life Insurance Corporation of India, and insurance intermediaries) and two sets of conditions. The Rules are made under clauses (aa) and (ab) of sub-section (2) of section 46 of the Foreign Exchange Management Act, 1999.
This article states the position as per the Rules notified on 17 October 2019 (S.O. 3732(E)) as amended by the notifications named in this article; the latest amendment consulted is S.O. 4870(E) dated 2 September 2026. Later amendments, press notes and sector regulators' conditions should be checked before acting. Investors looking at an insurer or a broker can begin with our FEMA advisory service.
Insurance company: one hundred per cent, automatic route, subject to approval and verification by the Insurance Regulatory and Development Authority of India. Life Insurance Corporation of India: 20%, automatic route. Insurance intermediaries: one hundred per cent, automatic route, subject to verification by the Authority. In an Indian insurance company having foreign investment, at least one among the Chairperson, the Managing Director and the Chief Executive Officer must be a Resident Indian Citizen. Where a bank acts as an insurance intermediary, the caps of its own sector apply and its non-insurance revenues must stay above fifty per cent.
The entry as substituted
| Serial number | Sector or activity | Sectoral cap | Entry route |
|---|---|---|---|
| F.8 | Insurance (heading) | - | - |
| F.8.1 | Insurance Company | One hundred per cent | Automatic |
| F.8.2 | Life Insurance Corporation of India | 20% | Automatic |
| F.8.3 | Insurance Intermediaries including insurance brokers, re-insurance brokers, insurance consultants, corporate agents, third party administrator, Surveyors and Loss Assessors, managing general agents, insurance repositories and such other entities, as may be notified by the Insurance Regulatory and Development Authority of India from time to time | One hundred per cent | Automatic |
| F.8.3.1 | Other conditions applicable to Indian insurance companies and insurance intermediaries, (a) to (k) | - | - |
| F.8.3.2 | Other conditions applicable to the Life Insurance Corporation of India (LIC), (a) to (c) | - | - |
The Table prints the cap against serial numbers F.8.1 and F.8.3 as a percentage figure; it is written in words here. Conditions (a) and (b) of F.8.3.1 themselves print "one hundred per cent." in words.
Which notification made the entry
Serial number F.8 and the entries relating to it were substituted by the Foreign Exchange Management (Non-debt Instruments) (Second Amendment) Rules, 2026, S.O. 2186(E) dated 2 May 2026, which came into force on the date of its publication in the Official Gazette. This is the current entry; S.O. 4870(E) dated 2 September 2026 does not touch it.
History in one paragraph. The insurance entry as notified on 17 October 2019 was changed three times before 2026: by the Foreign Exchange Management (Non-debt Instruments) (Second Amendment) Rules, 2020, S.O. 1374(E) dated 27 April 2020; by the Foreign Exchange Management (Non-debt Instruments) (Second Amendment) Rules, 2021, S.O. 3411(E) dated 19 August 2021; and by the Foreign Exchange Management (Non-debt Instruments) (Amendment) Rules, 2022, S.O. 1802(E) dated 12 April 2022. Those texts are superseded by the 2026 substitution and are not the law described below.
Serial number F.8.3.1: insurance companies and intermediaries
(a) Aggregate holding. The aggregate holdings by way of total foreign investment in the equity shares of an Indian Insurance Company by foreign investors, including portfolio investors, is permitted up to one hundred per cent of the paid-up equity capital.
(b) Route. Foreign investment up to one hundred per cent of the total paid-up equity of the Indian Insurance Company is allowed on the automatic route subject to approval and verification by the Insurance Regulatory and Development Authority of India.
(c) Insurance Act and licence. Foreign investment in the sector is subject to compliance with the Insurance Act, 1938, and to the condition that companies receiving FDI obtain the necessary licence or approval from the Authority for undertaking insurance and related activities.
(d) Management and other rules. (I) In an Indian Insurance Company having foreign investment, at least one among the Chairperson of its Board, its Managing Director and its Chief Executive Officer shall be Resident Indian Citizens. (II) Such a company shall comply with the Indian Insurance Companies (Foreign Investment) Rules, 2015 and the applicable rules or regulations notified by the Department of Financial Services or the Authority from time to time.
(e) Portfolio investment. Foreign portfolio investment in an Indian Insurance company is governed by Chapter IV, rules 10 and 11 read with Schedule II of these Rules, and the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019.
(f) Pricing. Any increase in foreign investment in an Indian Insurance company shall be in accordance with the pricing guidelines specified under the Rules; see pricing of shares issued to non-residents.
(g) Intermediaries. The foreign equity investment cap of hundred per cent applies on the same terms to insurance brokers, re-insurance brokers, insurance consultants, corporate agents, third party administrator, Surveyors and Loss Assessors, managing general agents, insurance repositories and such other entities as the Authority may notify.
(h) Verification and the bank proviso. FDI proposals are allowed under the automatic route subject to verification by the Authority, and foreign investment in insurance intermediaries is governed by the same terms as provided under rules 7 and 8 of the Indian Insurance Companies (Foreign Investment) Rules, 2015. Proviso: where an entity like a bank, whose primary business is outside the insurance area, is allowed by the Authority to function as an insurance intermediary, the foreign equity investment caps applicable in that sector continue to apply, subject to the condition that the revenues of such entities from their primary (non-insurance related) business must remain above fifty per cent of their total revenues in any financial year.
(i) Intermediary with majority foreign shareholding. It shall: (i) be incorporated as a limited company under the Companies Act, 2013; (ii) have at least one from among the Chairman of the Board of Directors, the Chief Executive Officer, the Principal Officer or the Managing Director who is a resident Indian citizen; (iii) bring in the latest technological, managerial and other skills; and (iv) make disclosures, in the formats to be specified by the Authority, of all payments made to its group, promoter, subsidiary, interconnected or associate entities.
(j) Bank promoted insurers. The other conditions under "Banking - Private Sector" against serial number F.2.1 apply to bank promoted insurance companies; see banks and asset reconstruction companies.
(k) Defined expressions. "Equity Share Capital", "Foreign Direct Investment", "Foreign Investors", "Foreign Portfolio Investment", "Indian Insurance Company", "Indian Company", "Non-resident Entity", "Resident Indian Citizen" and "Total Foreign investment" have the meaning given in the relevant rules notified by the Department of Financial Services under the Insurance Act, 1938 or in the Authority's regulations.
The Insurance Act, the 2015 Rules and the Authority's regulations are named by the Table and are not set out in the Rules.
Serial number F.8.3.2: the Life Insurance Corporation
(a) Foreign investment in LIC is subject to compliance with the Life Insurance Corporation Act, 1956, and such other provisions of the Insurance Act, 1938 as are applicable to LIC as per section 43 of the 1956 Act.
(b) Clauses (e) and (f) of F.8.3.1 (portfolio investment and pricing) also apply to LIC, as if the reference to an Indian Insurance Company were a reference to LIC.
(c) The expressions referred to in clause (k) of F.8.3.1 have the meanings given there. The Explanation adds that any reference to an Indian insurance company or company in clause (k) is to be construed as a reference to LIC.
Points to notice in the words
- Automatic, but with the regulator. The route cell prints "Automatic". Condition (b) adds "approval and verification" by the Authority for insurance companies; condition (h) speaks of "verification" for FDI proposals.
- Condition (d)(I) is printed as "at least one among ... shall be Resident Indian Citizens", with the plural.
- The cross-reference in the banking entry. Serial number F.2.1(c) refers to the insurance limit "as specified in serial number F.8.1 and F.8.2"; after the 2026 substitution those numbers are the insurance company and LIC, and intermediaries are F.8.3.
Readers should confirm these points against the official text.
A worked example
Hartwell Assurance Group plc, a foreign insurer, plans to own all the shares of Suraksha General Insurance Company Limited, an Indian insurance company. Serial number F.8.1 and condition (a) permit foreign investment up to one hundred per cent. The route is automatic, subject to approval and verification by the Authority, and Suraksha must hold the licence the Insurance Act requires. Among Suraksha's Chairperson, Managing Director and Chief Executive Officer, at least one must be a Resident Indian Citizen. Any later increase in Hartwell's holding must follow the pricing guidelines in the Rules.
Hartwell also holds 70% of Kavach Insurance Brokers Private Limited. As an intermediary with majority foreign shareholding, Kavach must be a limited company under the Companies Act, 2013, have a resident Indian citizen in one of the four named positions, and disclose payments to group entities in the Authority's formats.
A foreign fund wants shares of LIC. Serial number F.8.2 caps foreign investment at 20% under the automatic route.
Need help with foreign investment in an insurer or broker?
The Table, the Insurance Act and the Authority's regulations have to be read together. Our FEMA advisory team sets out the Schedule I conditions and the foreign investment reporting, and coordinates with your insurance counsel.
Key takeaways
- Insurance company: one hundred per cent, automatic route, with approval and verification by the Authority.
- Life Insurance Corporation of India: 20%, automatic route.
- Insurance intermediaries, including managing general agents and insurance repositories: one hundred per cent, automatic route.
- At least one of the Chairperson, Managing Director and Chief Executive Officer of an insurer with foreign investment must be a Resident Indian Citizen.
- A bank acting as intermediary keeps its own sector's cap and must earn above fifty per cent of revenues from its primary business.
- The entry is as substituted by S.O. 2186(E) dated 2 May 2026.
Read next
- Serial numbers F.1 to F.3 of the Table: banks and asset reconstruction companies
- Serial numbers F.9 to F.11 of the Table: pension, other financial services and white label ATMs
- Schedule II paragraph 1(a): FPI individual and aggregate limits
- Insurance company registration with IRDAI
Disclaimer: Based on the Gazette text of the instrument this article names, as notified and as amended by the notifications named in the article (for the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 the latest amendment consulted is S.O. 4870(E) dated 2 September 2026), as consulted on 2 October 2026. There is no official consolidated text; the provisions were read with each amendment applied. Sectoral caps, entry routes, conditions, forms and time limits change by notification, press note and circular; later changes should be checked on the Gazette, DPIIT and Reserve Bank sites. This article is general information, not legal advice; check the official text before acting.