Insurance Laws (Amendment) Bill, 2021 approved by Lok Sabha on 22 March 2021 and Rajya Sabha on 18 March 2021. The bill proposes to revise India's insurance legislation. The measure also aims to eliminate antiquated restrictions from earlier legislation and adapt current insurance business methods in a changing, dynamic environment that incorporates private involvement. Foreign investment is estimated to contribute 20,000-25,000 crores. The measure raises the FDI ceiling in the insurance industry to 74% from 49%. Foreign direct investment, foreign venture capital, and foreign portfolio investment would all include foreign insurance investment. Insurance firms may raise money using non-equity instruments. The insurance industry helps transfer national savings into other economic sectors. FDI in insurance can satisfy India's long-term cash needs to develop infrastructure. The current study examines the Indian insurance business, its prospects owing to FDI, and its significant difficulties.