The Finance Minister Shri Arun Jaitley in his maiden Budget Speech announced that the pending Insurance Laws (Amendment) Bill will immediately be brought for consideration of the Parliament. The Finance Minister said benefits of insurance in India have not reached to a large section of the people as insurance penetration and density are very low. The Finance Minister Shri Jaitley assured that the Government would work addressing this situation in multi-pronged manner with support of all stake holders concerned. Finance Minister also announced that as a part of the legislative initiatives under the financial sector reforms, it is proposed to bridge the regulatory gap under the Prize Chits and Money Circulation Scheme (Banking) Act, 1978. This will facilitate effective regulation of companies and entities which have duped a large number of poor and vulnerable people in the country, the Minister added.
 

Insurance law amendment to expand regulatory reach and address low insurance penetration and money circulation scheme gaps. Passage of an Insurance Laws (Amendment) Bill is announced for immediate introduction to strengthen the regulatory framework, increase insurance penetration, and, as part of financial sector reforms, to bridge a regulatory gap under the Prize Chits and Money Circulation Scheme (Banking) Act, 1978 to enable effective oversight of entities operating deceptive money circulation schemes.