Abstract: The foreign direct investment means cross boarder investment made by a resident in one economy in an enterprise in another economy, with the objective of establishing a lasting interest in the invested economy. FDI is also described as ,”investment into the business of a country by a company in another company ”.Mostly the investment is into production by either buying a company in the target country or by expanding operations of an existing business is that country”. Such investments can take place for many reasons including taking advantage of cheaper wages, special Investment privileges (tax exemption) offered by the country. FDI in insurance is going to hurt our country in long term and that is also up to 49% which will disappears our money from the country. The thing is insurance company works on the idea that if they are giving insurance to suppose 1000 individual, out of these only one will claim the insurance hence they will make profit out of 999.now this profit generally goes in investment purposes through our banks. Thus, generally government companies have licenses for doing insurance which our money stays in our hands only. But since we are allowing 49% FDI thus it will go in foreign hands. India needs investment in sectors where it takes a long time to make a profit. Insurance is such sector. The west has the money and the patience to wait long for financial returns and hence FDI in this sector is very welcome. That’s why foreign direct investment increases to 49% from the current level of 26% this paper aims to study the trends of foreign direct investment in Indian insurance sectors.