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https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18126§ionno=18&orderno=32 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 18 | Furnishing reports | Every insurer shall furnish to the 1[Authority] a certified copy of every report on the affairs of the concern which is submitted to the members or policy-holders of the insurer immediately after its submission to the members or policy-holders, as the case may be.1. Subs. by Act 41 of 1999, s. 30 and The First Schedule, for "Controller" (w.e.f. 19-4-2000). | 0 | Furnishing reports Every insurer shall furnish to the 1[Authority] a certified copy of every report on the affairs of the concern which is submitted to the members or policy-holders of the insurer immediately after its submission to the members or policy-holders, as the case may be.1.Subs.by Act 41 of 1999, s.30 and The First Schedule, for "Controller" (w.e.f.19-4-2000). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18127§ionno=19&orderno=33 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 19 | Abstract of proceedings of general meetings | Every insurer, being a company or body incorporated under any law for the time being in force in 2[India], shall furnish to the 1[Authority] 3[a certified copy of the minutes of the proceedings of every general meeting, as entered in the Minutes Book of the insurer] within thirty days from the holding of the meeting to which it relates.1. Subs. by Act 41 of 1999, s. 30 and The First Schedule, for "Controller" (w.e.f. 19-4-2000).
2. Subs. by Act 62 of 1956, s. 2 and the Schedule, for "the States" (w.e.f. 1-11-1956).
3. Subs by Act 47 of 1950, s. 14, for "an abstract of the proceedings of every general meeting" (w.e.f. 1-6-1950). | 0 | Abstract of proceedings of general meetings Every insurer, being a company or body incorporated under any law for the time being in force in 2[India], shall furnish to the 1[Authority] 3[a certified copy of the minutes of the proceedings of every general meeting, as entered in the Minutes Book of the insurer] within thirty days from the holding of the meeting to which it relates.1.Subs.by Act 41 of 1999, s.30 and The First Schedule, for "Controller" (w.e.f.19-4-2000).2.Subs.by Act 62 of 1956, s.2 and the Schedule, for "the States" (w.e.f.1-11-1956).3.Subs by Act 47 of 1950, s.14, for "an abstract of the proceedings of every general meeting" (w.e.f.1-6-1950). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18128§ionno=20&orderno=34 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 20 | Custody and inspection of documents and supply of copies | 1[(1) Every return furnished to the Authority or certified copy thereof shall be kept by the Authority and shall be open to inspection; and any person may procure a copy of any such return, or of any part thereof, on payment of such fee as may be specified by the regulations.]
(2) A printed or certified copy of the accounts, statements and abstract furnished in accordance with the provisions of section 15 2*** shall, on the application of any shareholder or policy-holder made at any time within two years from the date on which the documents was so furnished, be supplied to him by the insurer within fourteen days when the insurer is constituted, incorporated or domiciled in 3[India] and in any other case within one month of such application.
(3) A copy of the memorandum and articles of association of the insurer, if a company shall on the application of any policy-holder, be supplied to him by the insurer on payment of 4[such fee as may be specified by the regulations].1. Subs. by Act 5 of 2015, s. 23, for sub-section (1) (w.e.f. 26-12-2014).
2. Subs. by Act 62 of 1956, s. 2 and the Schedule, for "the States" (w.e.f. 1-11-1956).
3. Subs. by 5 of 2015, s. 23, for "one rupee" (w.e.f. 26-12-2014). | 0 | Custody and inspection of documents and supply of copies 1[(1) Every return furnished to the Authority or certified copy thereof shall be kept by the Authority and shall be open to inspection; and any person may procure a copy of any such return, or of any part thereof, on payment of such fee as may be specified by the regulations.]
(2) A printed or certified copy of the accounts, statements and abstract furnished in accordance with the provisions of section 15 2*** shall, on the application of any shareholder or policy-holder made at any time within two years from the date on which the documents was so furnished, be supplied to him by the insurer within fourteen days when the insurer is constituted, incorporated or domiciled in 3[India] and in any other case within one month of such application.(3) A copy of the memorandum and articles of association of the insurer, if a company shall on the application of any policy-holder, be supplied to him by the insurer on payment of 4[such fee as may be specified by the regulations].1.Subs.by Act 5 of 2015, s.23, for sub-section (1) (w.e.f.26-12-2014).2.Subs.by Act 62 of 1956, s.2 and the Schedule, for "the States" (w.e.f.1-11-1956).3.Subs.by 5 of 2015, s.23, for "one rupee" (w.e.f.26-12-2014). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18129§ionno=21&orderno=35 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 21 | Powers of Authority regarding returns | 21. Powers of 2[Authority] regarding returns. -- (1) If it appears to the 5[Authority] that any return furnished to him under the provisions of this Act is inaccurate or defective in any respect, he may--
(a) require from the insurer such further information, certified if he so directs by an auditor or actuary, as he may consider necessary to correct or supplement such return;
(b) call upon the insurer to submit for his examination at the principal place of business of the insurer in 1[India] any book of account, register or other document or to supply any statement which his may specify in a notice served on the insurer for the purpose;
(c) examine any office of the insurer on oath in relation to the return;
(d) decline to accept any such return unless the inaccuracy has been corrected or the deficiency has been supplied before the expiry of one month from the date on which the requisition asking for correction of (he inaccuracy or supply of the deficiency was delivered to the insurer 3[or of such further time as the 2[Authority] may specify in the requisition] and if him declines to accept any such return, the insurer shall be deemed to have failed to comply with the provisions of section 15 4*** 5[or section 28] 6[or section 28A 7 or section 28B or section 64V] relating to the furnishing of returns.
8[(2) The Securities Appellate Tribunal may, on the application of an insurer and after hearing the Authority, cancel any order made by the Authority under clause (d) of sub-section (1) or may direct the acceptance of such a return which the Authority has declined to accept, if the insurer satisfies the Tribunal that the action of the Authority was in the circumstances unreasonable:
Provided that no application under this sub-section shall be entertained unless it is made before the expiration of four months from the date when the Authority made the order or declined to accept the return.]1. Subs. by Act 62 of 1956, s. 2 and the Schedule, for "the States" (w.e.f. 1-11-1956).
2. Subs. by Act 41 of 1999, s. 30 and the Schedule, for "Controller" (w.e.f. 19-4-2000).
3. Ins. by Act 47 of 1950, s. 15 (w.e.f. 1-6-1950).
4. The words and figures "or section 16" omitted by Act 5 of 2015, s. 24 (w.e.f. 26-12-2014).
5. Ins. by Act 6 of 1946, s. 13 (w.e.f. 20-3-1946).
6. Ins. by Act 47of 1950, s. 15 (w.e.f. 1-6-1950).
7. Ins. by Act 6 of 1968, s. 10 (w.e.f. 1-6-1969).
8. Subs. by Act 5 of 2015, s. 24 (w.e.f. 26-12-2014). | 0 | Powers of Authority regarding returns 21.Powers of 2[Authority] regarding returns.-- (1) If it appears to the 5[Authority] that any return furnished to him under the provisions of this Act is inaccurate or defective in any respect, he may--
(a) require from the insurer such further information, certified if he so directs by an auditor or actuary, as he may consider necessary to correct or supplement such return;
(b) call upon the insurer to submit for his examination at the principal place of business of the insurer in 1[India] any book of account, register or other document or to supply any statement which his may specify in a notice served on the insurer for the purpose;
(c) examine any office of the insurer on oath in relation to the return;
(d) decline to accept any such return unless the inaccuracy has been corrected or the deficiency has been supplied before the expiry of one month from the date on which the requisition asking for correction of (he inaccuracy or supply of the deficiency was delivered to the insurer 3[or of such further time as the 2[Authority] may specify in the requisition] and if him declines to accept any such return, the insurer shall be deemed to have failed to comply with the provisions of section 15 4*** 5[or section 28] 6[or section 28A 7 or section 28B or section 64V] relating to the furnishing of returns.8[(2) The Securities Appellate Tribunal may, on the application of an insurer and after hearing the Authority, cancel any order made by the Authority under clause (d) of sub-section (1) or may direct the acceptance of such a return which the Authority has declined to accept, if the insurer satisfies the Tribunal that the action of the Authority was in the circumstances unreasonable:
Provided that no application under this sub-section shall be entertained unless it is made before the expiration of four months from the date when the Authority made the order or declined to accept the return.]1.Subs.by Act 62 of 1956, s.2 and the Schedule, for "the States" (w.e.f.1-11-1956).2.Subs.by Act 41 of 1999, s.30 and the Schedule, for "Controller" (w.e.f.19-4-2000).3.Ins.by Act 47 of 1950, s.15 (w.e.f.1-6-1950).4.The words and figures "or section 16" omitted by Act 5 of 2015, s.24 (w.e.f.26-12-2014).5.Ins.by Act 6 of 1946, s.13 (w.e.f.20-3-1946).6.Ins.by Act 47of 1950, s.15 (w.e.f.1-6-1950).7.Ins.by Act 6 of 1968, s.10 (w.e.f.1-6-1969).8.Subs.by Act 5 of 2015, s.24 (w.e.f.26-12-2014). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18130§ionno=22&orderno=36 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 22 | Powers of Authority to order revaluation | 22. Power of 1[Authority] to order revaluation.-- 2[(1)] If it appears to the 1[Authority] that an investigation or valuation to which section 13 refers 3*** does not properly indicate the condition of the affairs of the insurer by reason of the faulty basis adopted in the valuation, he may, after giving notice to the insurer and giving him an opportunity to be heard, cause an investigation and valuation 4[as at such date as the 1[Authority] may specify] to be made at the expense of the insurer by an actuary appointed by the insurer for this purpose and approved by the 1[Authority] and 4[and the insurer shall place at the disposal of the actuary so appointed and approved all the material required by the actuary for the purposes of the investigation and valuation within such period, not being less than three months, as the 1[Authority] may specify],
5[(2) The provisions of sub-sections (1) and (4) of section 13, and of sub-sections (I) and (2) of section 6***, shall apply in relation to an investigation and valuation under this section:
Provided that the abstract and statement prepared as the result of such investigation and valuation shall be furnished by such date as the 1[Authority] may specify.]1. Subs. by Act 41 of 1999, s. 30 and the Schedule, for "Controller" (w.e.f. 19-4-2000).
2. Section 22 renumbered as sub-section (1) thereof by Act 6 of 1946, s. 14 (w.e.f. 20-3-1946).
3. The words, brackets, letter and figures "or an abstract of a valuation report furnished under clause (c) of sub-section (2) of section 16" omitted by Act 5 of 2015 s. 25 (w.e.f. 26-12-2014).
4. Ins. by Act 6 of 1946, s. 14 (w.e.f. 20-3-1946).
5. Added by s. 14, ibid., (w.e.f. 20-3-1946).
6. The words, brackets, letter and figures "or, as the case may be, of sub-section (2) of section 16" omitted by Act 5 of 2015, s. 25 (w.e.f. 26-12-2014). | 0 | Powers of Authority to order revaluation 22.Power of 1[Authority] to order revaluation.-- 2[(1)] If it appears to the 1[Authority] that an investigation or valuation to which section 13 refers 3*** does not properly indicate the condition of the affairs of the insurer by reason of the faulty basis adopted in the valuation, he may, after giving notice to the insurer and giving him an opportunity to be heard, cause an investigation and valuation 4[as at such date as the 1[Authority] may specify] to be made at the expense of the insurer by an actuary appointed by the insurer for this purpose and approved by the 1[Authority] and 4[and the insurer shall place at the disposal of the actuary so appointed and approved all the material required by the actuary for the purposes of the investigation and valuation within such period, not being less than three months, as the 1[Authority] may specify],
5[(2) The provisions of sub-sections (1) and (4) of section 13, and of sub-sections (I) and (2) of section 6***, shall apply in relation to an investigation and valuation under this section:
Provided that the abstract and statement prepared as the result of such investigation and valuation shall be furnished by such date as the 1[Authority] may specify.]1.Subs.by Act 41 of 1999, s.30 and the Schedule, for "Controller" (w.e.f.19-4-2000).2.Section 22 renumbered as sub-section (1) thereof by Act 6 of 1946, s.14 (w.e.f.20-3-1946).3.The words, brackets, letter and figures "or an abstract of a valuation report furnished under clause (c) of sub-section (2) of section 16" omitted by Act 5 of 2015 s.25 (w.e.f.26-12-2014).4.Ins.by Act 6 of 1946, s.14 (w.e.f.20-3-1946).5.Added by s.14, ibid., (w.e.f.20-3-1946).6.The words, brackets, letter and figures "or, as the case may be, of sub-section (2) of section 16" omitted by Act 5 of 2015, s.25 (w.e.f.26-12-2014). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18131§ionno=23&orderno=37 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 23 | Evidence of documents | (1) Every return furnished to the 1[Authority] which has been certified by the 1[Authority] to be a return so furnished, shall be deemed to be a return so furnished.
(2) Every document, purporting to be certified by the 1[Authority] to be a copy of a return so furnished, shall be deemed to be a copy of that return and shall be received in evidence as if it were the original return, unless some variation between it and the original return is proved.1. Subs. by Act 41 of 1999, s. 30 and the Schedule, for "Controller" (w.e.f. 19-4-2000). | 0 | Evidence of documents (1) Every return furnished to the 1[Authority] which has been certified by the 1[Authority] to be a return so furnished, shall be deemed to be a return so furnished.(2) Every document, purporting to be certified by the 1[Authority] to be a copy of a return so furnished, shall be deemed to be a copy of that return and shall be received in evidence as if it were the original return, unless some variation between it and the original return is proved.1.Subs.by Act 41 of 1999, s.30 and the Schedule, for "Controller" (w.e.f.19-4-2000). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18132§ionno=24&orderno=38 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 24 | [Omitted | [Summary of returns to be published].--Omitted by the Insurance (Amendment) Act, 1941 (13 of 1941), s. 16 (w.e.f. 8-4-1941)]. | 0 | [Omitted [Summary of returns to be published].--Omitted by the Insurance (Amendment) Act, 1941 (13 of 1941), s.16 (w.e.f.8-4-1941)]. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18133§ionno=25&orderno=39 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 25 | Returns to be published in statutory forms | No insurer shall publish in 2[India] any return in a form other than that in which it has been furnished to the 1[Authority]:
Provided that nothing contained in this section shall prevent an insurer from publishing a true and accurate abstract from such returns for the purposes of publicity.1. Subs. by Act 41 of 1999, s. 30 and the Schedule, for "Controller" (w.e.f. 19-4-2000).
2. Subs. by Act 62 of 1956, s. 2 and the Schedule, for "the States" (w.e.f. 1-11-1956). | 0 | Returns to be published in statutory forms No insurer shall publish in 2[India] any return in a form other than that in which it has been furnished to the 1[Authority]:
Provided that nothing contained in this section shall prevent an insurer from publishing a true and accurate abstract from such returns for the purposes of publicity.1.Subs.by Act 41 of 1999, s.30 and the Schedule, for "Controller" (w.e.f.19-4-2000).2.Subs.by Act 62 of 1956, s.2 and the Schedule, for "the States" (w.e.f.1-11-1956). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18134§ionno=26&orderno=40 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 26 | Alterations in the particulars furnished with application for registration to be reported | Whenever any alteration occurs or is made which affects any of the matters which are required under the provisions of sub-section (2) of section 3 to accompany an application by an insurer for registration, the insurer shall forthwith furnish to the 1[Authority] full particulars of such alteration. 2[All such particulars shall be authenticated in the manner required by that sub-section for the authentication of the matters therein referred to, and, where the alteration affects the assured rates, advantages, terms and conditions offered in connection with life insurance policies the actuarial certificate referred to in clause (f) of the said sub-section shall accompany the particulars of the alteration.]1. Subs. by Act 41 of 1999, s. 30 and the Schedule, for "Controller" (w.e.f. 19-4-2000).
2. Added by Act 13 of 1941, s. 17 (w.e.f. 8-4-1941). | 0 | Alterations in the particulars furnished with application for registration to be reported Whenever any alteration occurs or is made which affects any of the matters which are required under the provisions of sub-section (2) of section 3 to accompany an application by an insurer for registration, the insurer shall forthwith furnish to the 1[Authority] full particulars of such alteration.2[All such particulars shall be authenticated in the manner required by that sub-section for the authentication of the matters therein referred to, and, where the alteration affects the assured rates, advantages, terms and conditions offered in connection with life insurance policies the actuarial certificate referred to in clause (f) of the said sub-section shall accompany the particulars of the alteration.]1.Subs.by Act 41 of 1999, s.30 and the Schedule, for "Controller" (w.e.f.19-4-2000).2.Added by Act 13 of 1941, s.17 (w.e.f.8-4-1941). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18135§ionno=27&orderno=41 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 27 | Investment of assets | 1[27. Investment of assets. --(1) Every insurer shall invest and at all times keep invested assets equivalent to not less than the sum of--
(a) the amount of his liabilities to holders of life insurance policies in India on account of matured claims, and
(b) the amount required to meet the liability on policies of life insurance maturing for payment in India,
less--
(i) the amount of premiums which have fallen due to the insurer on such policies but have not been paid and the days of grace for payment of which have not expired, and
(ii) any amount due to the insurer for loans granted on and within the surrender values of policies of life insurance maturing for payment in India issued by him or by an insurer whose business he has acquired and in respect of which he has assumed liability in the following manner, namely: --
(a) twenty-five per cent. of the said sum in Government securities, a further sum equal to not less than twenty-five per cent. of the said sum in Government securities or other approved securities; and
(b) the balance in any of the approved investments,
as may be specified by the regulations subject to the limitations, conditions and restrictions specified therein.
(2) In the case of an insurer carrying on general insurance business, twenty per cent. of the assets in Government Securities, a further sum equal to not less than ten per cent. of the assets in Government Securities or other approved securities and the balance in any other investment in accordance with the regulations of the Authority and subject to such limitations, conditions and restrictions as may be specified by the Authority in this regard.
Explanation. --In this section, the term assets means all the assets of insurer at their carrying value but does not include any assets specifically held against any fund or portion thereof in respect of which the Authority is satisfied that such fund or portion thereof, as the case may be, is regulated by the law of any country outside India or miscellaneous expenditure or in respect of which the Authority is satisfied that it would not be in the interest of the insurer to apply the provisions of this section.
(3) For the purposes of sub-sections (1) and (2), any specified assets shall, subject to such conditions, if any, as may be specified, be deemed to be assets invested or kept invested in approved investments specified by regulations.
(4) In computing the assets referred to in sub-sections (1) and (2), any investment made with reference to any currency other than the Indian rupee which is in excess of the amount required to meet the liabilities of the insurers in India with reference to that currency, to the extent of such excess, shall not be taken into account:
Provided that nothing contained in this sub-section shall affect the operation of sub-section (2):
Provided further that the Authority may, either generally or in any particular case, direct that any investment shall, subject to such conditions as may be imposed, be taken into account, in such manner as may be specified in computing the assets referred to in sub-sections (1) and (2) and where any direction has been issued under this proviso, copies thereof shall be laid before each house of Parliament as soon as may be after it is issued.
(5) Where an insurer has accepted re-insurance in respect of any policies of life insurance issued by another insurer and maturing for payment in India or has ceded re-insurance to another insurer in respect of any such policies issued by himself, the sum referred to in sub-section (1) shall be increased by the amount of the liability involved in such acceptance and decreased by the amount of the liability involved in such cession.
(6) The Government securities and other approved securities in which assets are under sub-section (1) or sub-section (2) to be invested and kept invested shall be held by the insurer free of any encumbrance, charge, hypothecation or lien.
(7) The assets required by this section to be held invested by an insurer incorporated or domiciled outside India shall, except to the extent of any part thereof which consists of foreign assets held outside India, be held in India and all such assets shall be held in trust for the discharge of the liabilities of the nature referred to in sub-section (1) and shall be vested in trustees resident in India and approved by the Authority, and the instrument of trust under this sub-section shall be executed by the insurer with the approval of the Authority and shall define the manner in which alone the subject-matter of the trust shall be dealt with.
2*****1. Subs. by Act 5 of 2015, s. 26, for sections 27, 27A, 27B, 27C and 27D (w.e.f. 26-12-2014).
2. Explanation omitted by Act 6 of 2021, s. 3 (w.e.f. 1-4-2021). | 0 | Investment of assets 1[27.Investment of assets.--(1) Every insurer shall invest and at all times keep invested assets equivalent to not less than the sum of--
(a) the amount of his liabilities to holders of life insurance policies in India on account of matured claims, and
(b) the amount required to meet the liability on policies of life insurance maturing for payment in India,
less--
(i) the amount of premiums which have fallen due to the insurer on such policies but have not been paid and the days of grace for payment of which have not expired, and
(ii) any amount due to the insurer for loans granted on and within the surrender values of policies of life insurance maturing for payment in India issued by him or by an insurer whose business he has acquired and in respect of which he has assumed liability in the following manner, namely: --
(a) twenty-five per cent.of the said sum in Government securities, a further sum equal to not less than twenty-five per cent.of the said sum in Government securities or other approved securities; and
(b) the balance in any of the approved investments,
as may be specified by the regulations subject to the limitations, conditions and restrictions specified therein.(2) In the case of an insurer carrying on general insurance business, twenty per cent.of the assets in Government Securities, a further sum equal to not less than ten per cent.of the assets in Government Securities or other approved securities and the balance in any other investment in accordance with the regulations of the Authority and subject to such limitations, conditions and restrictions as may be specified by the Authority in this regard.Explanation.--In this section, the term assets means all the assets of insurer at their carrying value but does not include any assets specifically held against any fund or portion thereof in respect of which the Authority is satisfied that such fund or portion thereof, as the case may be, is regulated by the law of any country outside India or miscellaneous expenditure or in respect of which the Authority is satisfied that it would not be in the interest of the insurer to apply the provisions of this section.(3) For the purposes of sub-sections (1) and (2), any specified assets shall, subject to such conditions, if any, as may be specified, be deemed to be assets invested or kept invested in approved investments specified by regulations. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18135§ionno=27&orderno=41 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 27 | Investment of assets | 1[27. Investment of assets. --(1) Every insurer shall invest and at all times keep invested assets equivalent to not less than the sum of--
(a) the amount of his liabilities to holders of life insurance policies in India on account of matured claims, and
(b) the amount required to meet the liability on policies of life insurance maturing for payment in India,
less--
(i) the amount of premiums which have fallen due to the insurer on such policies but have not been paid and the days of grace for payment of which have not expired, and
(ii) any amount due to the insurer for loans granted on and within the surrender values of policies of life insurance maturing for payment in India issued by him or by an insurer whose business he has acquired and in respect of which he has assumed liability in the following manner, namely: --
(a) twenty-five per cent. of the said sum in Government securities, a further sum equal to not less than twenty-five per cent. of the said sum in Government securities or other approved securities; and
(b) the balance in any of the approved investments,
as may be specified by the regulations subject to the limitations, conditions and restrictions specified therein.
(2) In the case of an insurer carrying on general insurance business, twenty per cent. of the assets in Government Securities, a further sum equal to not less than ten per cent. of the assets in Government Securities or other approved securities and the balance in any other investment in accordance with the regulations of the Authority and subject to such limitations, conditions and restrictions as may be specified by the Authority in this regard.
Explanation. --In this section, the term assets means all the assets of insurer at their carrying value but does not include any assets specifically held against any fund or portion thereof in respect of which the Authority is satisfied that such fund or portion thereof, as the case may be, is regulated by the law of any country outside India or miscellaneous expenditure or in respect of which the Authority is satisfied that it would not be in the interest of the insurer to apply the provisions of this section.
(3) For the purposes of sub-sections (1) and (2), any specified assets shall, subject to such conditions, if any, as may be specified, be deemed to be assets invested or kept invested in approved investments specified by regulations.
(4) In computing the assets referred to in sub-sections (1) and (2), any investment made with reference to any currency other than the Indian rupee which is in excess of the amount required to meet the liabilities of the insurers in India with reference to that currency, to the extent of such excess, shall not be taken into account:
Provided that nothing contained in this sub-section shall affect the operation of sub-section (2):
Provided further that the Authority may, either generally or in any particular case, direct that any investment shall, subject to such conditions as may be imposed, be taken into account, in such manner as may be specified in computing the assets referred to in sub-sections (1) and (2) and where any direction has been issued under this proviso, copies thereof shall be laid before each house of Parliament as soon as may be after it is issued.
(5) Where an insurer has accepted re-insurance in respect of any policies of life insurance issued by another insurer and maturing for payment in India or has ceded re-insurance to another insurer in respect of any such policies issued by himself, the sum referred to in sub-section (1) shall be increased by the amount of the liability involved in such acceptance and decreased by the amount of the liability involved in such cession.
(6) The Government securities and other approved securities in which assets are under sub-section (1) or sub-section (2) to be invested and kept invested shall be held by the insurer free of any encumbrance, charge, hypothecation or lien.
(7) The assets required by this section to be held invested by an insurer incorporated or domiciled outside India shall, except to the extent of any part thereof which consists of foreign assets held outside India, be held in India and all such assets shall be held in trust for the discharge of the liabilities of the nature referred to in sub-section (1) and shall be vested in trustees resident in India and approved by the Authority, and the instrument of trust under this sub-section shall be executed by the insurer with the approval of the Authority and shall define the manner in which alone the subject-matter of the trust shall be dealt with.
2*****1. Subs. by Act 5 of 2015, s. 26, for sections 27, 27A, 27B, 27C and 27D (w.e.f. 26-12-2014).
2. Explanation omitted by Act 6 of 2021, s. 3 (w.e.f. 1-4-2021). | 1 | Investment of assets (4) In computing the assets referred to in sub-sections (1) and (2), any investment made with reference to any currency other than the Indian rupee which is in excess of the amount required to meet the liabilities of the insurers in India with reference to that currency, to the extent of such excess, shall not be taken into account:
Provided that nothing contained in this sub-section shall affect the operation of sub-section (2):
Provided further that the Authority may, either generally or in any particular case, direct that any investment shall, subject to such conditions as may be imposed, be taken into account, in such manner as may be specified in computing the assets referred to in sub-sections (1) and (2) and where any direction has been issued under this proviso, copies thereof shall be laid before each house of Parliament as soon as may be after it is issued. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18135§ionno=27&orderno=41 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 27 | Investment of assets | 1[27. Investment of assets. --(1) Every insurer shall invest and at all times keep invested assets equivalent to not less than the sum of--
(a) the amount of his liabilities to holders of life insurance policies in India on account of matured claims, and
(b) the amount required to meet the liability on policies of life insurance maturing for payment in India,
less--
(i) the amount of premiums which have fallen due to the insurer on such policies but have not been paid and the days of grace for payment of which have not expired, and
(ii) any amount due to the insurer for loans granted on and within the surrender values of policies of life insurance maturing for payment in India issued by him or by an insurer whose business he has acquired and in respect of which he has assumed liability in the following manner, namely: --
(a) twenty-five per cent. of the said sum in Government securities, a further sum equal to not less than twenty-five per cent. of the said sum in Government securities or other approved securities; and
(b) the balance in any of the approved investments,
as may be specified by the regulations subject to the limitations, conditions and restrictions specified therein.
(2) In the case of an insurer carrying on general insurance business, twenty per cent. of the assets in Government Securities, a further sum equal to not less than ten per cent. of the assets in Government Securities or other approved securities and the balance in any other investment in accordance with the regulations of the Authority and subject to such limitations, conditions and restrictions as may be specified by the Authority in this regard.
Explanation. --In this section, the term assets means all the assets of insurer at their carrying value but does not include any assets specifically held against any fund or portion thereof in respect of which the Authority is satisfied that such fund or portion thereof, as the case may be, is regulated by the law of any country outside India or miscellaneous expenditure or in respect of which the Authority is satisfied that it would not be in the interest of the insurer to apply the provisions of this section.
(3) For the purposes of sub-sections (1) and (2), any specified assets shall, subject to such conditions, if any, as may be specified, be deemed to be assets invested or kept invested in approved investments specified by regulations.
(4) In computing the assets referred to in sub-sections (1) and (2), any investment made with reference to any currency other than the Indian rupee which is in excess of the amount required to meet the liabilities of the insurers in India with reference to that currency, to the extent of such excess, shall not be taken into account:
Provided that nothing contained in this sub-section shall affect the operation of sub-section (2):
Provided further that the Authority may, either generally or in any particular case, direct that any investment shall, subject to such conditions as may be imposed, be taken into account, in such manner as may be specified in computing the assets referred to in sub-sections (1) and (2) and where any direction has been issued under this proviso, copies thereof shall be laid before each house of Parliament as soon as may be after it is issued.
(5) Where an insurer has accepted re-insurance in respect of any policies of life insurance issued by another insurer and maturing for payment in India or has ceded re-insurance to another insurer in respect of any such policies issued by himself, the sum referred to in sub-section (1) shall be increased by the amount of the liability involved in such acceptance and decreased by the amount of the liability involved in such cession.
(6) The Government securities and other approved securities in which assets are under sub-section (1) or sub-section (2) to be invested and kept invested shall be held by the insurer free of any encumbrance, charge, hypothecation or lien.
(7) The assets required by this section to be held invested by an insurer incorporated or domiciled outside India shall, except to the extent of any part thereof which consists of foreign assets held outside India, be held in India and all such assets shall be held in trust for the discharge of the liabilities of the nature referred to in sub-section (1) and shall be vested in trustees resident in India and approved by the Authority, and the instrument of trust under this sub-section shall be executed by the insurer with the approval of the Authority and shall define the manner in which alone the subject-matter of the trust shall be dealt with.
2*****1. Subs. by Act 5 of 2015, s. 26, for sections 27, 27A, 27B, 27C and 27D (w.e.f. 26-12-2014).
2. Explanation omitted by Act 6 of 2021, s. 3 (w.e.f. 1-4-2021). | 2 | Investment of assets |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18135§ionno=27&orderno=41 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 27 | Investment of assets | 1[27. Investment of assets. --(1) Every insurer shall invest and at all times keep invested assets equivalent to not less than the sum of--
(a) the amount of his liabilities to holders of life insurance policies in India on account of matured claims, and
(b) the amount required to meet the liability on policies of life insurance maturing for payment in India,
less--
(i) the amount of premiums which have fallen due to the insurer on such policies but have not been paid and the days of grace for payment of which have not expired, and
(ii) any amount due to the insurer for loans granted on and within the surrender values of policies of life insurance maturing for payment in India issued by him or by an insurer whose business he has acquired and in respect of which he has assumed liability in the following manner, namely: --
(a) twenty-five per cent. of the said sum in Government securities, a further sum equal to not less than twenty-five per cent. of the said sum in Government securities or other approved securities; and
(b) the balance in any of the approved investments,
as may be specified by the regulations subject to the limitations, conditions and restrictions specified therein.
(2) In the case of an insurer carrying on general insurance business, twenty per cent. of the assets in Government Securities, a further sum equal to not less than ten per cent. of the assets in Government Securities or other approved securities and the balance in any other investment in accordance with the regulations of the Authority and subject to such limitations, conditions and restrictions as may be specified by the Authority in this regard.
Explanation. --In this section, the term assets means all the assets of insurer at their carrying value but does not include any assets specifically held against any fund or portion thereof in respect of which the Authority is satisfied that such fund or portion thereof, as the case may be, is regulated by the law of any country outside India or miscellaneous expenditure or in respect of which the Authority is satisfied that it would not be in the interest of the insurer to apply the provisions of this section.
(3) For the purposes of sub-sections (1) and (2), any specified assets shall, subject to such conditions, if any, as may be specified, be deemed to be assets invested or kept invested in approved investments specified by regulations.
(4) In computing the assets referred to in sub-sections (1) and (2), any investment made with reference to any currency other than the Indian rupee which is in excess of the amount required to meet the liabilities of the insurers in India with reference to that currency, to the extent of such excess, shall not be taken into account:
Provided that nothing contained in this sub-section shall affect the operation of sub-section (2):
Provided further that the Authority may, either generally or in any particular case, direct that any investment shall, subject to such conditions as may be imposed, be taken into account, in such manner as may be specified in computing the assets referred to in sub-sections (1) and (2) and where any direction has been issued under this proviso, copies thereof shall be laid before each house of Parliament as soon as may be after it is issued.
(5) Where an insurer has accepted re-insurance in respect of any policies of life insurance issued by another insurer and maturing for payment in India or has ceded re-insurance to another insurer in respect of any such policies issued by himself, the sum referred to in sub-section (1) shall be increased by the amount of the liability involved in such acceptance and decreased by the amount of the liability involved in such cession.
(6) The Government securities and other approved securities in which assets are under sub-section (1) or sub-section (2) to be invested and kept invested shall be held by the insurer free of any encumbrance, charge, hypothecation or lien.
(7) The assets required by this section to be held invested by an insurer incorporated or domiciled outside India shall, except to the extent of any part thereof which consists of foreign assets held outside India, be held in India and all such assets shall be held in trust for the discharge of the liabilities of the nature referred to in sub-section (1) and shall be vested in trustees resident in India and approved by the Authority, and the instrument of trust under this sub-section shall be executed by the insurer with the approval of the Authority and shall define the manner in which alone the subject-matter of the trust shall be dealt with.
2*****1. Subs. by Act 5 of 2015, s. 26, for sections 27, 27A, 27B, 27C and 27D (w.e.f. 26-12-2014).
2. Explanation omitted by Act 6 of 2021, s. 3 (w.e.f. 1-4-2021). | 3 | Investment of assets |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18135§ionno=27&orderno=41 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 27 | Investment of assets | 1[27. Investment of assets. --(1) Every insurer shall invest and at all times keep invested assets equivalent to not less than the sum of--
(a) the amount of his liabilities to holders of life insurance policies in India on account of matured claims, and
(b) the amount required to meet the liability on policies of life insurance maturing for payment in India,
less--
(i) the amount of premiums which have fallen due to the insurer on such policies but have not been paid and the days of grace for payment of which have not expired, and
(ii) any amount due to the insurer for loans granted on and within the surrender values of policies of life insurance maturing for payment in India issued by him or by an insurer whose business he has acquired and in respect of which he has assumed liability in the following manner, namely: --
(a) twenty-five per cent. of the said sum in Government securities, a further sum equal to not less than twenty-five per cent. of the said sum in Government securities or other approved securities; and
(b) the balance in any of the approved investments,
as may be specified by the regulations subject to the limitations, conditions and restrictions specified therein.
(2) In the case of an insurer carrying on general insurance business, twenty per cent. of the assets in Government Securities, a further sum equal to not less than ten per cent. of the assets in Government Securities or other approved securities and the balance in any other investment in accordance with the regulations of the Authority and subject to such limitations, conditions and restrictions as may be specified by the Authority in this regard.
Explanation. --In this section, the term assets means all the assets of insurer at their carrying value but does not include any assets specifically held against any fund or portion thereof in respect of which the Authority is satisfied that such fund or portion thereof, as the case may be, is regulated by the law of any country outside India or miscellaneous expenditure or in respect of which the Authority is satisfied that it would not be in the interest of the insurer to apply the provisions of this section.
(3) For the purposes of sub-sections (1) and (2), any specified assets shall, subject to such conditions, if any, as may be specified, be deemed to be assets invested or kept invested in approved investments specified by regulations.
(4) In computing the assets referred to in sub-sections (1) and (2), any investment made with reference to any currency other than the Indian rupee which is in excess of the amount required to meet the liabilities of the insurers in India with reference to that currency, to the extent of such excess, shall not be taken into account:
Provided that nothing contained in this sub-section shall affect the operation of sub-section (2):
Provided further that the Authority may, either generally or in any particular case, direct that any investment shall, subject to such conditions as may be imposed, be taken into account, in such manner as may be specified in computing the assets referred to in sub-sections (1) and (2) and where any direction has been issued under this proviso, copies thereof shall be laid before each house of Parliament as soon as may be after it is issued.
(5) Where an insurer has accepted re-insurance in respect of any policies of life insurance issued by another insurer and maturing for payment in India or has ceded re-insurance to another insurer in respect of any such policies issued by himself, the sum referred to in sub-section (1) shall be increased by the amount of the liability involved in such acceptance and decreased by the amount of the liability involved in such cession.
(6) The Government securities and other approved securities in which assets are under sub-section (1) or sub-section (2) to be invested and kept invested shall be held by the insurer free of any encumbrance, charge, hypothecation or lien.
(7) The assets required by this section to be held invested by an insurer incorporated or domiciled outside India shall, except to the extent of any part thereof which consists of foreign assets held outside India, be held in India and all such assets shall be held in trust for the discharge of the liabilities of the nature referred to in sub-section (1) and shall be vested in trustees resident in India and approved by the Authority, and the instrument of trust under this sub-section shall be executed by the insurer with the approval of the Authority and shall define the manner in which alone the subject-matter of the trust shall be dealt with.
2*****1. Subs. by Act 5 of 2015, s. 26, for sections 27, 27A, 27B, 27C and 27D (w.e.f. 26-12-2014).
2. Explanation omitted by Act 6 of 2021, s. 3 (w.e.f. 1-4-2021). | 4 | Investment of assets (5) Where an insurer has accepted re-insurance in respect of any policies of life insurance issued by another insurer and maturing for payment in India or has ceded re-insurance to another insurer in respect of any such policies issued by himself, the sum referred to in sub-section (1) shall be increased by the amount of the liability involved in such acceptance and decreased by the amount of the liability involved in such cession.(6) The Government securities and other approved securities in which assets are under sub-section (1) or sub-section (2) to be invested and kept invested shall be held by the insurer free of any encumbrance, charge, hypothecation or lien.(7) The assets required by this section to be held invested by an insurer incorporated or domiciled outside India shall, except to the extent of any part thereof which consists of foreign assets held outside India, be held in India and all such assets shall be held in trust for the discharge of the liabilities of the nature referred to in sub-section (1) and shall be vested in trustees resident in India and approved by the Authority, and the instrument of trust under this sub-section shall be executed by the insurer with the approval of the Authority and shall define the manner in which alone the subject-matter of the trust shall be dealt with.2*****1.Subs.by Act 5 of 2015, s.26, for sections 27, 27A, 27B, 27C and 27D (w.e.f.26-12-2014).2.Explanation omitted by Act 6 of 2021, s.3 (w.e.f.1-4-2021). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18136§ionno=27A&orderno=42 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 27A | Further provisions regarding investments | (1) No insurer carrying on life insurance business shall invest or keep invested any part of his controlled fund and no insurer carrying on general business shall invest or keep invested any part of his assets otherwise than in any of the approved investments as may be specified by the regulations subject to such limitations, conditions and restrictions therein.
(2) Notwithstanding anything contained in sub-section (1) or sub-section (2) of section 27, an insurer may, subject to the provisions contained in the next succeeding sub-sections, invest or keep invested any part of his controlled fund or assets otherwise than in an approved investment, if--
(i) after such investment, the total amounts of all such investments of the insurer do not exceed fifteen per cent. of the sum referred to in sub-section (1) of section 27 or fifteen per cent. of the assets referred to in sub-section (2) as the case may be;
(ii) the investment is made, or, in the case of any investment already made, the continuance of such investment is with the consent of all the directors present at a meeting and eligible to vote, special notice of which has been given to all the directors then in India, and all such investments, including investments in which any director is interested, are reported without delay to the Authority with full details of the investments and the extent of the director's interest in any such investment.
(3) An insurer shall not out of his controlled fund or assets as referred to in section 27, --
(a) invest in the shares of any one banking company; or
(b) invest in the shares or debentures of any one company,
more than the percentage specified by the regulations.
(4) An insurer shall not out of his controlled fund or assets as referred to in sub-section (2) of section 27 invest or keep invested in the shares or debentures of any private limited company.
(5) All assets forming the controlled fund or assets as referred to in sub-section (2) of section 27, not being Government securities or other approved securities in which assets are to be invested or held invested in accordance with this section, shall (except for a part thereof not exceeding one-tenth of the controlled fund or assets as referred to in sub-section (2) thereof in value which may, subject to such conditions and restrictions as may be prescribed, be offered as security for any loan taken for purposes of any investment), be held free of any encumbrance, charge, hypothecation or lien.
(6) If at any time the Authority considers any one or more of the investments of an insurer to be unsuitable or undesirable, the Authority may, after giving the insurer an opportunity of being heard, direct him to realise the investment or investments, and the insurer shall comply with the direction within such time as may be specified in this behalf by the Authority.
(7) Nothing contained in this section shall be deemed to affect in any way the manner in which any moneys relating to the provident fund of any employee or to any security taken from any employee or other moneys of a like nature are required to be held by or under any Central Act, or Act of a State legislature.
Explanation. --In this section "controlled fund" means--
(a) in the case of any insurer carrying on life insurance business--
(i) all his funds, if he carries on no other class of insurance business;
(ii) all the funds in India appertaining to his life insurance business if he carries on some other class of insurance business also.
Explanation.--For the purposes of sub-clauses (i) and (ii), the fund does not include any fund or portion thereof in respect of which the Authority is satisfied that such fund or portion, as the case may be, is regulated by the law in force of any country outside India or it would not be in the interest of the insurer to apply the provisions of this section;
(b) in the case of any other insurer carrying on life insurance business--
(i) all his funds in India, if he carries on no other class of insurance business;
(ii) all the funds in India appertaining to his life insurance business if he carries on some other class of insurance business also; but does not include any fund or portion thereof in respect of which the Authority is satisfied that such fund or portion thereof, as the case may be, is regulated by the law of any country outside India or in respect of which the Authority is satisfied that it would not be in the interest of the insurer to apply the provisions of this section. | 0 | Further provisions regarding investments (1) No insurer carrying on life insurance business shall invest or keep invested any part of his controlled fund and no insurer carrying on general business shall invest or keep invested any part of his assets otherwise than in any of the approved investments as may be specified by the regulations subject to such limitations, conditions and restrictions therein.(2) Notwithstanding anything contained in sub-section (1) or sub-section (2) of section 27, an insurer may, subject to the provisions contained in the next succeeding sub-sections, invest or keep invested any part of his controlled fund or assets otherwise than in an approved investment, if--
(i) after such investment, the total amounts of all such investments of the insurer do not exceed fifteen per cent.of the sum referred to in sub-section (1) of section 27 or fifteen per cent.of the assets referred to in sub-section (2) as the case may be;
(ii) the investment is made, or, in the case of any investment already made, the continuance of such investment is with the consent of all the directors present at a meeting and eligible to vote, special notice of which has been given to all the directors then in India, and all such investments, including investments in which any director is interested, are reported without delay to the Authority with full details of the investments and the extent of the director's interest in any such investment.(3) An insurer shall not out of his controlled fund or assets as referred to in section 27, --
(a) invest in the shares of any one banking company; or
(b) invest in the shares or debentures of any one company,
more than the percentage specified by the regulations.(4) An insurer shall not out of his controlled fund or assets as referred to in sub-section (2) of section 27 invest or keep invested in the shares or debentures of any private limited company.(5) All assets forming the controlled fund or assets as referred to in sub-section (2) of section 27, not being Government securities or other approved securities in which assets are to be invested or held invested in accordance with this section, shall (except for a part thereof not exceeding one-tenth of the controlled fund or assets as referred to in sub-section (2) thereof in value which may, subject to such conditions and restrictions as may be prescribed, be offered as security for any loan taken for purposes of any investment), be held free of any encumbrance, charge, hypothecation or lien. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18136§ionno=27A&orderno=42 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 27A | Further provisions regarding investments | (1) No insurer carrying on life insurance business shall invest or keep invested any part of his controlled fund and no insurer carrying on general business shall invest or keep invested any part of his assets otherwise than in any of the approved investments as may be specified by the regulations subject to such limitations, conditions and restrictions therein.
(2) Notwithstanding anything contained in sub-section (1) or sub-section (2) of section 27, an insurer may, subject to the provisions contained in the next succeeding sub-sections, invest or keep invested any part of his controlled fund or assets otherwise than in an approved investment, if--
(i) after such investment, the total amounts of all such investments of the insurer do not exceed fifteen per cent. of the sum referred to in sub-section (1) of section 27 or fifteen per cent. of the assets referred to in sub-section (2) as the case may be;
(ii) the investment is made, or, in the case of any investment already made, the continuance of such investment is with the consent of all the directors present at a meeting and eligible to vote, special notice of which has been given to all the directors then in India, and all such investments, including investments in which any director is interested, are reported without delay to the Authority with full details of the investments and the extent of the director's interest in any such investment.
(3) An insurer shall not out of his controlled fund or assets as referred to in section 27, --
(a) invest in the shares of any one banking company; or
(b) invest in the shares or debentures of any one company,
more than the percentage specified by the regulations.
(4) An insurer shall not out of his controlled fund or assets as referred to in sub-section (2) of section 27 invest or keep invested in the shares or debentures of any private limited company.
(5) All assets forming the controlled fund or assets as referred to in sub-section (2) of section 27, not being Government securities or other approved securities in which assets are to be invested or held invested in accordance with this section, shall (except for a part thereof not exceeding one-tenth of the controlled fund or assets as referred to in sub-section (2) thereof in value which may, subject to such conditions and restrictions as may be prescribed, be offered as security for any loan taken for purposes of any investment), be held free of any encumbrance, charge, hypothecation or lien.
(6) If at any time the Authority considers any one or more of the investments of an insurer to be unsuitable or undesirable, the Authority may, after giving the insurer an opportunity of being heard, direct him to realise the investment or investments, and the insurer shall comply with the direction within such time as may be specified in this behalf by the Authority.
(7) Nothing contained in this section shall be deemed to affect in any way the manner in which any moneys relating to the provident fund of any employee or to any security taken from any employee or other moneys of a like nature are required to be held by or under any Central Act, or Act of a State legislature.
Explanation. --In this section "controlled fund" means--
(a) in the case of any insurer carrying on life insurance business--
(i) all his funds, if he carries on no other class of insurance business;
(ii) all the funds in India appertaining to his life insurance business if he carries on some other class of insurance business also.
Explanation.--For the purposes of sub-clauses (i) and (ii), the fund does not include any fund or portion thereof in respect of which the Authority is satisfied that such fund or portion, as the case may be, is regulated by the law in force of any country outside India or it would not be in the interest of the insurer to apply the provisions of this section;
(b) in the case of any other insurer carrying on life insurance business--
(i) all his funds in India, if he carries on no other class of insurance business;
(ii) all the funds in India appertaining to his life insurance business if he carries on some other class of insurance business also; but does not include any fund or portion thereof in respect of which the Authority is satisfied that such fund or portion thereof, as the case may be, is regulated by the law of any country outside India or in respect of which the Authority is satisfied that it would not be in the interest of the insurer to apply the provisions of this section. | 1 | Further provisions regarding investments (6) If at any time the Authority considers any one or more of the investments of an insurer to be unsuitable or undesirable, the Authority may, after giving the insurer an opportunity of being heard, direct him to realise the investment or investments, and the insurer shall comply with the direction within such time as may be specified in this behalf by the Authority. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18136§ionno=27A&orderno=42 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 27A | Further provisions regarding investments | (1) No insurer carrying on life insurance business shall invest or keep invested any part of his controlled fund and no insurer carrying on general business shall invest or keep invested any part of his assets otherwise than in any of the approved investments as may be specified by the regulations subject to such limitations, conditions and restrictions therein.
(2) Notwithstanding anything contained in sub-section (1) or sub-section (2) of section 27, an insurer may, subject to the provisions contained in the next succeeding sub-sections, invest or keep invested any part of his controlled fund or assets otherwise than in an approved investment, if--
(i) after such investment, the total amounts of all such investments of the insurer do not exceed fifteen per cent. of the sum referred to in sub-section (1) of section 27 or fifteen per cent. of the assets referred to in sub-section (2) as the case may be;
(ii) the investment is made, or, in the case of any investment already made, the continuance of such investment is with the consent of all the directors present at a meeting and eligible to vote, special notice of which has been given to all the directors then in India, and all such investments, including investments in which any director is interested, are reported without delay to the Authority with full details of the investments and the extent of the director's interest in any such investment.
(3) An insurer shall not out of his controlled fund or assets as referred to in section 27, --
(a) invest in the shares of any one banking company; or
(b) invest in the shares or debentures of any one company,
more than the percentage specified by the regulations.
(4) An insurer shall not out of his controlled fund or assets as referred to in sub-section (2) of section 27 invest or keep invested in the shares or debentures of any private limited company.
(5) All assets forming the controlled fund or assets as referred to in sub-section (2) of section 27, not being Government securities or other approved securities in which assets are to be invested or held invested in accordance with this section, shall (except for a part thereof not exceeding one-tenth of the controlled fund or assets as referred to in sub-section (2) thereof in value which may, subject to such conditions and restrictions as may be prescribed, be offered as security for any loan taken for purposes of any investment), be held free of any encumbrance, charge, hypothecation or lien.
(6) If at any time the Authority considers any one or more of the investments of an insurer to be unsuitable or undesirable, the Authority may, after giving the insurer an opportunity of being heard, direct him to realise the investment or investments, and the insurer shall comply with the direction within such time as may be specified in this behalf by the Authority.
(7) Nothing contained in this section shall be deemed to affect in any way the manner in which any moneys relating to the provident fund of any employee or to any security taken from any employee or other moneys of a like nature are required to be held by or under any Central Act, or Act of a State legislature.
Explanation. --In this section "controlled fund" means--
(a) in the case of any insurer carrying on life insurance business--
(i) all his funds, if he carries on no other class of insurance business;
(ii) all the funds in India appertaining to his life insurance business if he carries on some other class of insurance business also.
Explanation.--For the purposes of sub-clauses (i) and (ii), the fund does not include any fund or portion thereof in respect of which the Authority is satisfied that such fund or portion, as the case may be, is regulated by the law in force of any country outside India or it would not be in the interest of the insurer to apply the provisions of this section;
(b) in the case of any other insurer carrying on life insurance business--
(i) all his funds in India, if he carries on no other class of insurance business;
(ii) all the funds in India appertaining to his life insurance business if he carries on some other class of insurance business also; but does not include any fund or portion thereof in respect of which the Authority is satisfied that such fund or portion thereof, as the case may be, is regulated by the law of any country outside India or in respect of which the Authority is satisfied that it would not be in the interest of the insurer to apply the provisions of this section. | 2 | Further provisions regarding investments |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18136§ionno=27A&orderno=42 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 27A | Further provisions regarding investments | (1) No insurer carrying on life insurance business shall invest or keep invested any part of his controlled fund and no insurer carrying on general business shall invest or keep invested any part of his assets otherwise than in any of the approved investments as may be specified by the regulations subject to such limitations, conditions and restrictions therein.
(2) Notwithstanding anything contained in sub-section (1) or sub-section (2) of section 27, an insurer may, subject to the provisions contained in the next succeeding sub-sections, invest or keep invested any part of his controlled fund or assets otherwise than in an approved investment, if--
(i) after such investment, the total amounts of all such investments of the insurer do not exceed fifteen per cent. of the sum referred to in sub-section (1) of section 27 or fifteen per cent. of the assets referred to in sub-section (2) as the case may be;
(ii) the investment is made, or, in the case of any investment already made, the continuance of such investment is with the consent of all the directors present at a meeting and eligible to vote, special notice of which has been given to all the directors then in India, and all such investments, including investments in which any director is interested, are reported without delay to the Authority with full details of the investments and the extent of the director's interest in any such investment.
(3) An insurer shall not out of his controlled fund or assets as referred to in section 27, --
(a) invest in the shares of any one banking company; or
(b) invest in the shares or debentures of any one company,
more than the percentage specified by the regulations.
(4) An insurer shall not out of his controlled fund or assets as referred to in sub-section (2) of section 27 invest or keep invested in the shares or debentures of any private limited company.
(5) All assets forming the controlled fund or assets as referred to in sub-section (2) of section 27, not being Government securities or other approved securities in which assets are to be invested or held invested in accordance with this section, shall (except for a part thereof not exceeding one-tenth of the controlled fund or assets as referred to in sub-section (2) thereof in value which may, subject to such conditions and restrictions as may be prescribed, be offered as security for any loan taken for purposes of any investment), be held free of any encumbrance, charge, hypothecation or lien.
(6) If at any time the Authority considers any one or more of the investments of an insurer to be unsuitable or undesirable, the Authority may, after giving the insurer an opportunity of being heard, direct him to realise the investment or investments, and the insurer shall comply with the direction within such time as may be specified in this behalf by the Authority.
(7) Nothing contained in this section shall be deemed to affect in any way the manner in which any moneys relating to the provident fund of any employee or to any security taken from any employee or other moneys of a like nature are required to be held by or under any Central Act, or Act of a State legislature.
Explanation. --In this section "controlled fund" means--
(a) in the case of any insurer carrying on life insurance business--
(i) all his funds, if he carries on no other class of insurance business;
(ii) all the funds in India appertaining to his life insurance business if he carries on some other class of insurance business also.
Explanation.--For the purposes of sub-clauses (i) and (ii), the fund does not include any fund or portion thereof in respect of which the Authority is satisfied that such fund or portion, as the case may be, is regulated by the law in force of any country outside India or it would not be in the interest of the insurer to apply the provisions of this section;
(b) in the case of any other insurer carrying on life insurance business--
(i) all his funds in India, if he carries on no other class of insurance business;
(ii) all the funds in India appertaining to his life insurance business if he carries on some other class of insurance business also; but does not include any fund or portion thereof in respect of which the Authority is satisfied that such fund or portion thereof, as the case may be, is regulated by the law of any country outside India or in respect of which the Authority is satisfied that it would not be in the interest of the insurer to apply the provisions of this section. | 3 | Further provisions regarding investments (7) Nothing contained in this section shall be deemed to affect in any way the manner in which any moneys relating to the provident fund of any employee or to any security taken from any employee or other moneys of a like nature are required to be held by or under any Central Act, or Act of a State legislature.Explanation.--In this section "controlled fund" means--
(a) in the case of any insurer carrying on life insurance business--
(i) all his funds, if he carries on no other class of insurance business;
(ii) all the funds in India appertaining to his life insurance business if he carries on some other class of insurance business also.Explanation.--For the purposes of sub-clauses (i) and (ii), the fund does not include any fund or portion thereof in respect of which the Authority is satisfied that such fund or portion, as the case may be, is regulated by the law in force of any country outside India or it would not be in the interest of the insurer to apply the provisions of this section;
(b) in the case of any other insurer carrying on life insurance business--
(i) all his funds in India, if he carries on no other class of insurance business;
(ii) all the funds in India appertaining to his life insurance business if he carries on some other class of insurance business also; but does not include any fund or portion thereof in respect of which the Authority is satisfied that such fund or portion thereof, as the case may be, is regulated by the law of any country outside India or in respect of which the Authority is satisfied that it would not be in the interest of the insurer to apply the provisions of this section. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18137§ionno=27B&orderno=43 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 27B | Provisions regarding investments of assets of insurer carrying general insurance business | (1) All assets of an insurer carrying on general insurance business shall, subject to such conditions, if any, as may be prescribed, be deemed to be assets invested or kept invested in approved investments specified in section 27.
(2) All assets shall (except for a part thereof not exceeding one-tenth of the total assets in value which may subject to such conditions and restrictions as may be prescribed, be offered as security for any loan taken for purposes of any investment or for payment of claims, or which may be kept as security deposit with the banks for acceptance of policies) be held free of any encumbrance, charge, hypothecation or lien.
(3) Without prejudice to the powers conferred on the Authority by sub-section (5) of section 27A nothing contained in this section shall be deemed to require any insurer to realise any investment made in conformity with the provisions of sub-section (1) of section 27 after the commencement of the Insurance (Amendment) Act, 1968 (62 of 1968), which, after the making thereof, has ceased to be an approved investment within the meaning of this section. | 0 | Provisions regarding investments of assets of insurer carrying general insurance business (1) All assets of an insurer carrying on general insurance business shall, subject to such conditions, if any, as may be prescribed, be deemed to be assets invested or kept invested in approved investments specified in section 27.(2) All assets shall (except for a part thereof not exceeding one-tenth of the total assets in value which may subject to such conditions and restrictions as may be prescribed, be offered as security for any loan taken for purposes of any investment or for payment of claims, or which may be kept as security deposit with the banks for acceptance of policies) be held free of any encumbrance, charge, hypothecation or lien.(3) Without prejudice to the powers conferred on the Authority by sub-section (5) of section 27A nothing contained in this section shall be deemed to require any insurer to realise any investment made in conformity with the provisions of sub-section (1) of section 27 after the commencement of the Insurance (Amendment) Act, 1968 (62 of 1968), which, after the making thereof, has ceased to be an approved investment within the meaning of this section. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18138§ionno=27C&orderno=44 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 27C | Investment by insurer in certain cases | An insurer may invest not more than five per cent. in aggregate of his controlled fund or assets as referred to in sub-section (2) of section 27 in the companies belonging to the promoters, subject to such conditions as may be specified by the regulations. | 0 | Investment by insurer in certain cases An insurer may invest not more than five per cent.in aggregate of his controlled fund or assets as referred to in sub-section (2) of section 27 in the companies belonging to the promoters, subject to such conditions as may be specified by the regulations. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18139§ionno=27D&orderno=45 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 27D | Manner and conditions of investment | (1) Without prejudice to anything contained in this section, the Authority may, in the interests of the policyholders, specify by the regulations, the time, manner and other conditions of investment of assets to be held by an insurer for the purposes of this Act.
(2) The Authority may give specific directions for the time, manner and other conditions subject to which the funds of policyholders shall be invested in the infrastructure and social sector as may be specified by the regulations and such regulations shall apply uniformly to all the insurers carrying on the business of life insurance, general insurance, or health insurance or re-insurance in India on or after the commencement of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999).
(3) The Authority may, after taking into account the nature of business and to protect the interests of the policyholders, issue to an insurer the directions relating to the time, manner and other conditions of investment of assets to be held by him:
Provided that no direction under this sub-section shall be issued unless the insurer concerned has been given a reasonable opportunity of being heard. | 0 | Manner and conditions of investment (1) Without prejudice to anything contained in this section, the Authority may, in the interests of the policyholders, specify by the regulations, the time, manner and other conditions of investment of assets to be held by an insurer for the purposes of this Act.(2) The Authority may give specific directions for the time, manner and other conditions subject to which the funds of policyholders shall be invested in the infrastructure and social sector as may be specified by the regulations and such regulations shall apply uniformly to all the insurers carrying on the business of life insurance, general insurance, or health insurance or re-insurance in India on or after the commencement of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999).(3) The Authority may, after taking into account the nature of business and to protect the interests of the policyholders, issue to an insurer the directions relating to the time, manner and other conditions of investment of assets to be held by him:
Provided that no direction under this sub-section shall be issued unless the insurer concerned has been given a reasonable opportunity of being heard. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18140§ionno=27E&orderno=46 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 27E | Prohibition for investment of funds outside India | No insurer shall directly or indirectly invest outside India the funds of the policyholders. | 0 | Prohibition for investment of funds outside India No insurer shall directly or indirectly invest outside India the funds of the policyholders. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18141§ionno=28&orderno=47 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 28 | Statement and return of investment of assets | 1[28. Statement and return of investment of assets.--Every insurer shall submit to the Authority returns giving details of investments made, in such form, time and manner including its authentication as may be specified by the regulations.]1. Subs. by Act 5 of 2015, s. 27, for section 28, section 28A and section 28B (w.e.f. 26-12-2014). | 0 | Statement and return of investment of assets 1[28.Statement and return of investment of assets.--Every insurer shall submit to the Authority returns giving details of investments made, in such form, time and manner including its authentication as may be specified by the regulations.]1.Subs.by Act 5 of 2015, s.27, for section 28, section 28A and section 28B (w.e.f.26-12-2014). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18142§ionno=29&orderno=48 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 29 | Prohibition of loans | 1[29. Prohibition of loans.--(1) No insurer shall grant loans or temporary advances either on hypothecation of property or on personal security or otherwise, except loans on life insurance policies issued by him within their surrender value, to any director, manager, actuary, auditor or officer of the insurer, if a company or to any other company or firm in which any such director, manager, actuary or officer holds the position of a director, manager, actuary, officer or partner:
Provided that nothing contained in this sub-section shall apply to such loans, made by an insurer to a banking company, as may be specified by the Authority:
Provided further that nothing in this section shall prohibit a company from granting such loans or advances to a subsidiary company or to any other company of which the company granting the loan or advance is a subsidiary company if the previous approval of the Authority is obtained for such loan or advance.
(2) The provisions of section 185 of the Companies Act, 2013 (18 of 2013) shall not apply to a loan granted to a director of an insurer being a company, if the loan is one granted on the security of a policy on which the insurer bears the risk and the policy was issued to the director on his own life, and the loan is within the surrender value of the policy.
(3) Subject to the provisions of sub-section (1), no insurer shall grant--
(a) any loans or temporary advances either on hypothecation of property or on personal security or otherwise, except such loans as may be specified by the regulations including the loans sanctioned as part of their salary package to the full-time employees of the insurer as per the scheme duly approved by its Board of Directors;
(b) temporary advances to any insurance agent to facilitate the carrying out of his functions as such except in cases where such advances do not exceed in the aggregate the renewal commission earned by him during the immediately preceding year.
(4) Where any event occurs giving rise to circumstances, the existence of which at the time of grant of any subsisting loan or advance would have made such grant a contravention of this section, such loan or advance shall, notwithstanding anything in any contract to the contrary, be repaid within three months from the occurrence of such event.
(5) In case of default in complying with the provisions of sub-section (4), the director, manager, auditor, actuary, officer or insurance agent concerned shall, without prejudice to any other penalty which he may incur, cease to hold office under, or to act for, the insurer granting the loan on the expiry of three months.]1. Subs. by s. 27, ibid., for section 29 (w.e.f. 26-12-2014). | 0 | Prohibition of loans 1[29.Prohibition of loans.--(1) No insurer shall grant loans or temporary advances either on hypothecation of property or on personal security or otherwise, except loans on life insurance policies issued by him within their surrender value, to any director, manager, actuary, auditor or officer of the insurer, if a company or to any other company or firm in which any such director, manager, actuary or officer holds the position of a director, manager, actuary, officer or partner:
Provided that nothing contained in this sub-section shall apply to such loans, made by an insurer to a banking company, as may be specified by the Authority:
Provided further that nothing in this section shall prohibit a company from granting such loans or advances to a subsidiary company or to any other company of which the company granting the loan or advance is a subsidiary company if the previous approval of the Authority is obtained for such loan or advance.(2) The provisions of section 185 of the Companies Act, 2013 (18 of 2013) shall not apply to a loan granted to a director of an insurer being a company, if the loan is one granted on the security of a policy on which the insurer bears the risk and the policy was issued to the director on his own life, and the loan is within the surrender value of the policy.(3) Subject to the provisions of sub-section (1), no insurer shall grant--
(a) any loans or temporary advances either on hypothecation of property or on personal security or otherwise, except such loans as may be specified by the regulations including the loans sanctioned as part of their salary package to the full-time employees of the insurer as per the scheme duly approved by its Board of Directors;
(b) temporary advances to any insurance agent to facilitate the carrying out of his functions as such except in cases where such advances do not exceed in the aggregate the renewal commission earned by him during the immediately preceding year.(4) Where any event occurs giving rise to circumstances, the existence of which at the time of grant of any subsisting loan or advance would have made such grant a contravention of this section, such loan or advance shall, notwithstanding anything in any contract to the contrary, be repaid within three months from the occurrence of such event.(5) In case of default in complying with the provisions of sub-section (4), the director, manager, auditor, actuary, officer or insurance agent concerned shall, without prejudice to any other penalty which he may incur, cease to hold office under, or to act for, the insurer granting the loan on the expiry of three months.]1.Subs.by s.27, ibid., for section 29 (w.e.f.26-12-2014). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18143§ionno=30&orderno=49 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 30 | Liability of directors, etc | 1[30. Liability of directors, etc., for loss due to contravention of section 27, 27A, 27B, 27C, 27D or section 29.--If by reason of a contravention of any of the provisions of section 27, 27A, 27B, 27C, 27D or section 29, any loss is sustained by the insurer or by the policyholders, every director, manager or officer who is knowingly a party to such contravention shall, without prejudice to any other penalty to which he may be liable under this Act, be jointly and severally liable to make good the amount of such loss.]1. Subs. by Act 5 of 2015, s. 29, for section 30 (w.e.f. 26-12-2014). | 0 | Liability of directors, etc 1[30.Liability of directors, etc., for loss due to contravention of section 27, 27A, 27B, 27C, 27D or section 29.--If by reason of a contravention of any of the provisions of section 27, 27A, 27B, 27C, 27D or section 29, any loss is sustained by the insurer or by the policyholders, every director, manager or officer who is knowingly a party to such contravention shall, without prejudice to any other penalty to which he may be liable under this Act, be jointly and severally liable to make good the amount of such loss.]1.Subs.by Act 5 of 2015, s.29, for section 30 (w.e.f.26-12-2014). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18144§ionno=31&orderno=50 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 31 | Assets of insurer how to be kept | 1 [(1) None of the assets in India of any insurer shall, except in so far as assets are required to be vested in trustees under sub-section (7) of section 27, be kept otherwise than in the name of a public officer approved by the Authority, or in the corporate name of the undertaking, if a company or an insurance co-operative society, as the case may be.]
2[(2) Nothing contained in this section shall be deemed to prohibit the endorsement in favour of a banking company of any security or other document solely for the purpose of collection or for realisation of interest, bonus or dividend.]1 Subs. by s. 30, ibid., for sub-section (1) (w.e.f. 26-12-2014).
2 Subs. by Act 47 of 1950, s. 22, for sub-section (2) (w.e.f. 1-6-1950). Earlier ins. by Act 6 of 1946, s. 18 (w.e.f. 20-3-1946). | 0 | Assets of insurer how to be kept 1 [(1) None of the assets in India of any insurer shall, except in so far as assets are required to be vested in trustees under sub-section (7) of section 27, be kept otherwise than in the name of a public officer approved by the Authority, or in the corporate name of the undertaking, if a company or an insurance co-operative society, as the case may be.]
2[(2) Nothing contained in this section shall be deemed to prohibit the endorsement in favour of a banking company of any security or other document solely for the purpose of collection or for realisation of interest, bonus or dividend.]1 Subs.by s.30, ibid., for sub-section (1) (w.e.f.26-12-2014).2 Subs.by Act 47 of 1950, s.22, for sub-section (2) (w.e.f.1-6-1950).Earlier ins.by Act 6 of 1946, s.18 (w.e.f.20-3-1946). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18145§ionno=31A&orderno=51 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 31A | Provisions relating to managers, etc | 1[31A. Provisions relating to managers, etc.--(1) Notwithstanding anything to the contrary contained in 2[the Companies Act, 2013 (18 of 2013)], or in the articles of association of the insurer, if a company, or in any contract or agreement, no insurer shall after expiry of one year from the commencement of the Insurance (Amendment) Act, 1950 ( 47 of 1950 ), --
(a) be directed or managed by, or employ as manager or officer,
(b) be directed or managed by, or employ as manager or officer or in any capacity, any person whose remuneration or any part thereof takes the form of commission or bonus or a share in the valuation surplus in respect of the life insurance business of the insurer, or
(c) be directed or managed by, or employ as manager or officer or in any capacity, any person whose remuneration or any part thereof takes the form of commission or bonus in respect of the general insurance business of the insurer:
Provided that nothing in this sub-section shall be deemed to prohibit --
3[(i) the payment of commission to an insurance agent, in respect of insurance business procured by or through him;]
4* * * * *
(iv) the employment of any individual in a clerical or other subordinate capacity who, as an insurance agent, receives commission in respect of insurance business procured by him;
(v) the employment as an officer of any individual who receives renewal commission in respect of life insurance business procured by hi m in hi s capacity as an insurance agent or as an employer of agents before such employment, or before the commencement of the Insurance (Amendment) Act, 1950 ( 47 of 1950 ), whichever is later;
(vi) the payment of a share in the profits of general insurance business;
(vii) the payment of bonus in any year on a uniform basis to all salaried employees or any class of them by way of additional remuneration 5***.
(2) Notwithstanding anything to the contrary contained in the Indian Companies Act, 1913 (7 of 1913), or in the articles of association of the insurer, being a company, or in any contract or agreement, no manager, managing director or any other person concerned in the management of an insurer's business shall be entitled to nominate a successor to hi s office, and no person so nominated, whether before or after the commencement of the Insurance (Amendment) Act, 1950 (47 of 1950), shall be entitled to hold or to continue in such office.
(3) If in the case of any insurance company provision is made by the articles of association of the company or by an agreement entered into between any person and the company for empowering a director or manager or other officer of the company to assign hi s office to any other person, any assignment of office made in pursuance of the said provision, shall, notwithstanding anything to the contrary contained in the said provision 6[or in any other law for the time being in force] be void.
(4) No person shall have any right, whether in contract or otherwise, to any compensation for any loss incurred by reason of the operation of any provision of this section.]1. Ins. by Act 47 of 1950, s. 23 (w.e.f. 1-6-1950).
2. Subs. by Act 5 of 2015, s. 2, for "the Indian Companies Act, 1913 (7 of 1913)" (w.e.f. 26-12-2014).
3. Subs. by s. 31, ibid., for sub-clause (i) and (ii) (w.e.f. 26-12-2014).
4. Clause (iii) omitted by Act 5 of 2015, s. 31 (w.e.f. 26-12-2014).
5. Certain words omitted by Act 62 of 1968, s. 14.
6. Subs. by Act 5 of 2015, s. 31 for "or in section 86B of the Indian Companies Act, 1913 (7 of 1913)" (w.e.f. 26-12-2014). | 0 | Provisions relating to managers, etc 1[31A.Provisions relating to managers, etc.--(1) Notwithstanding anything to the contrary contained in 2[the Companies Act, 2013 (18 of 2013)], or in the articles of association of the insurer, if a company, or in any contract or agreement, no insurer shall after expiry of one year from the commencement of the Insurance (Amendment) Act, 1950 ( 47 of 1950 ), --
(a) be directed or managed by, or employ as manager or officer,
(b) be directed or managed by, or employ as manager or officer or in any capacity, any person whose remuneration or any part thereof takes the form of commission or bonus or a share in the valuation surplus in respect of the life insurance business of the insurer, or
(c) be directed or managed by, or employ as manager or officer or in any capacity, any person whose remuneration or any part thereof takes the form of commission or bonus in respect of the general insurance business of the insurer:
Provided that nothing in this sub-section shall be deemed to prohibit --
3[(i) the payment of commission to an insurance agent, in respect of insurance business procured by or through him;]
4* * * * *
(iv) the employment of any individual in a clerical or other subordinate capacity who, as an insurance agent, receives commission in respect of insurance business procured by him;
(v) the employment as an officer of any individual who receives renewal commission in respect of life insurance business procured by hi m in hi s capacity as an insurance agent or as an employer of agents before such employment, or before the commencement of the Insurance (Amendment) Act, 1950 ( 47 of 1950 ), whichever is later;
(vi) the payment of a share in the profits of general insurance business;
(vii) the payment of bonus in any year on a uniform basis to all salaried employees or any class of them by way of additional remuneration 5***.(2) Notwithstanding anything to the contrary contained in the Indian Companies Act, 1913 (7 of 1913), or in the articles of association of the insurer, being a company, or in any contract or agreement, no manager, managing director or any other person concerned in the management of an insurer's business shall be entitled to nominate a successor to hi s office, and no person so nominated, whether before or after the commencement of the Insurance (Amendment) Act, 1950 (47 of 1950), shall be entitled to hold or to continue in such office. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18145§ionno=31A&orderno=51 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 31A | Provisions relating to managers, etc | 1[31A. Provisions relating to managers, etc.--(1) Notwithstanding anything to the contrary contained in 2[the Companies Act, 2013 (18 of 2013)], or in the articles of association of the insurer, if a company, or in any contract or agreement, no insurer shall after expiry of one year from the commencement of the Insurance (Amendment) Act, 1950 ( 47 of 1950 ), --
(a) be directed or managed by, or employ as manager or officer,
(b) be directed or managed by, or employ as manager or officer or in any capacity, any person whose remuneration or any part thereof takes the form of commission or bonus or a share in the valuation surplus in respect of the life insurance business of the insurer, or
(c) be directed or managed by, or employ as manager or officer or in any capacity, any person whose remuneration or any part thereof takes the form of commission or bonus in respect of the general insurance business of the insurer:
Provided that nothing in this sub-section shall be deemed to prohibit --
3[(i) the payment of commission to an insurance agent, in respect of insurance business procured by or through him;]
4* * * * *
(iv) the employment of any individual in a clerical or other subordinate capacity who, as an insurance agent, receives commission in respect of insurance business procured by him;
(v) the employment as an officer of any individual who receives renewal commission in respect of life insurance business procured by hi m in hi s capacity as an insurance agent or as an employer of agents before such employment, or before the commencement of the Insurance (Amendment) Act, 1950 ( 47 of 1950 ), whichever is later;
(vi) the payment of a share in the profits of general insurance business;
(vii) the payment of bonus in any year on a uniform basis to all salaried employees or any class of them by way of additional remuneration 5***.
(2) Notwithstanding anything to the contrary contained in the Indian Companies Act, 1913 (7 of 1913), or in the articles of association of the insurer, being a company, or in any contract or agreement, no manager, managing director or any other person concerned in the management of an insurer's business shall be entitled to nominate a successor to hi s office, and no person so nominated, whether before or after the commencement of the Insurance (Amendment) Act, 1950 (47 of 1950), shall be entitled to hold or to continue in such office.
(3) If in the case of any insurance company provision is made by the articles of association of the company or by an agreement entered into between any person and the company for empowering a director or manager or other officer of the company to assign hi s office to any other person, any assignment of office made in pursuance of the said provision, shall, notwithstanding anything to the contrary contained in the said provision 6[or in any other law for the time being in force] be void.
(4) No person shall have any right, whether in contract or otherwise, to any compensation for any loss incurred by reason of the operation of any provision of this section.]1. Ins. by Act 47 of 1950, s. 23 (w.e.f. 1-6-1950).
2. Subs. by Act 5 of 2015, s. 2, for "the Indian Companies Act, 1913 (7 of 1913)" (w.e.f. 26-12-2014).
3. Subs. by s. 31, ibid., for sub-clause (i) and (ii) (w.e.f. 26-12-2014).
4. Clause (iii) omitted by Act 5 of 2015, s. 31 (w.e.f. 26-12-2014).
5. Certain words omitted by Act 62 of 1968, s. 14.
6. Subs. by Act 5 of 2015, s. 31 for "or in section 86B of the Indian Companies Act, 1913 (7 of 1913)" (w.e.f. 26-12-2014). | 1 | Provisions relating to managers, etc (3) If in the case of any insurance company provision is made by the articles of association of the company or by an agreement entered into between any person and the company for empowering a director or manager or other officer of the company to assign hi s office to any other person, any assignment of office made in pursuance of the said provision, shall, notwithstanding anything to the contrary contained in the said provision 6[or in any other law for the time being in force] be void. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18145§ionno=31A&orderno=51 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 31A | Provisions relating to managers, etc | 1[31A. Provisions relating to managers, etc.--(1) Notwithstanding anything to the contrary contained in 2[the Companies Act, 2013 (18 of 2013)], or in the articles of association of the insurer, if a company, or in any contract or agreement, no insurer shall after expiry of one year from the commencement of the Insurance (Amendment) Act, 1950 ( 47 of 1950 ), --
(a) be directed or managed by, or employ as manager or officer,
(b) be directed or managed by, or employ as manager or officer or in any capacity, any person whose remuneration or any part thereof takes the form of commission or bonus or a share in the valuation surplus in respect of the life insurance business of the insurer, or
(c) be directed or managed by, or employ as manager or officer or in any capacity, any person whose remuneration or any part thereof takes the form of commission or bonus in respect of the general insurance business of the insurer:
Provided that nothing in this sub-section shall be deemed to prohibit --
3[(i) the payment of commission to an insurance agent, in respect of insurance business procured by or through him;]
4* * * * *
(iv) the employment of any individual in a clerical or other subordinate capacity who, as an insurance agent, receives commission in respect of insurance business procured by him;
(v) the employment as an officer of any individual who receives renewal commission in respect of life insurance business procured by hi m in hi s capacity as an insurance agent or as an employer of agents before such employment, or before the commencement of the Insurance (Amendment) Act, 1950 ( 47 of 1950 ), whichever is later;
(vi) the payment of a share in the profits of general insurance business;
(vii) the payment of bonus in any year on a uniform basis to all salaried employees or any class of them by way of additional remuneration 5***.
(2) Notwithstanding anything to the contrary contained in the Indian Companies Act, 1913 (7 of 1913), or in the articles of association of the insurer, being a company, or in any contract or agreement, no manager, managing director or any other person concerned in the management of an insurer's business shall be entitled to nominate a successor to hi s office, and no person so nominated, whether before or after the commencement of the Insurance (Amendment) Act, 1950 (47 of 1950), shall be entitled to hold or to continue in such office.
(3) If in the case of any insurance company provision is made by the articles of association of the company or by an agreement entered into between any person and the company for empowering a director or manager or other officer of the company to assign hi s office to any other person, any assignment of office made in pursuance of the said provision, shall, notwithstanding anything to the contrary contained in the said provision 6[or in any other law for the time being in force] be void.
(4) No person shall have any right, whether in contract or otherwise, to any compensation for any loss incurred by reason of the operation of any provision of this section.]1. Ins. by Act 47 of 1950, s. 23 (w.e.f. 1-6-1950).
2. Subs. by Act 5 of 2015, s. 2, for "the Indian Companies Act, 1913 (7 of 1913)" (w.e.f. 26-12-2014).
3. Subs. by s. 31, ibid., for sub-clause (i) and (ii) (w.e.f. 26-12-2014).
4. Clause (iii) omitted by Act 5 of 2015, s. 31 (w.e.f. 26-12-2014).
5. Certain words omitted by Act 62 of 1968, s. 14.
6. Subs. by Act 5 of 2015, s. 31 for "or in section 86B of the Indian Companies Act, 1913 (7 of 1913)" (w.e.f. 26-12-2014). | 2 | Provisions relating to managers, etc |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18145§ionno=31A&orderno=51 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 31A | Provisions relating to managers, etc | 1[31A. Provisions relating to managers, etc.--(1) Notwithstanding anything to the contrary contained in 2[the Companies Act, 2013 (18 of 2013)], or in the articles of association of the insurer, if a company, or in any contract or agreement, no insurer shall after expiry of one year from the commencement of the Insurance (Amendment) Act, 1950 ( 47 of 1950 ), --
(a) be directed or managed by, or employ as manager or officer,
(b) be directed or managed by, or employ as manager or officer or in any capacity, any person whose remuneration or any part thereof takes the form of commission or bonus or a share in the valuation surplus in respect of the life insurance business of the insurer, or
(c) be directed or managed by, or employ as manager or officer or in any capacity, any person whose remuneration or any part thereof takes the form of commission or bonus in respect of the general insurance business of the insurer:
Provided that nothing in this sub-section shall be deemed to prohibit --
3[(i) the payment of commission to an insurance agent, in respect of insurance business procured by or through him;]
4* * * * *
(iv) the employment of any individual in a clerical or other subordinate capacity who, as an insurance agent, receives commission in respect of insurance business procured by him;
(v) the employment as an officer of any individual who receives renewal commission in respect of life insurance business procured by hi m in hi s capacity as an insurance agent or as an employer of agents before such employment, or before the commencement of the Insurance (Amendment) Act, 1950 ( 47 of 1950 ), whichever is later;
(vi) the payment of a share in the profits of general insurance business;
(vii) the payment of bonus in any year on a uniform basis to all salaried employees or any class of them by way of additional remuneration 5***.
(2) Notwithstanding anything to the contrary contained in the Indian Companies Act, 1913 (7 of 1913), or in the articles of association of the insurer, being a company, or in any contract or agreement, no manager, managing director or any other person concerned in the management of an insurer's business shall be entitled to nominate a successor to hi s office, and no person so nominated, whether before or after the commencement of the Insurance (Amendment) Act, 1950 (47 of 1950), shall be entitled to hold or to continue in such office.
(3) If in the case of any insurance company provision is made by the articles of association of the company or by an agreement entered into between any person and the company for empowering a director or manager or other officer of the company to assign hi s office to any other person, any assignment of office made in pursuance of the said provision, shall, notwithstanding anything to the contrary contained in the said provision 6[or in any other law for the time being in force] be void.
(4) No person shall have any right, whether in contract or otherwise, to any compensation for any loss incurred by reason of the operation of any provision of this section.]1. Ins. by Act 47 of 1950, s. 23 (w.e.f. 1-6-1950).
2. Subs. by Act 5 of 2015, s. 2, for "the Indian Companies Act, 1913 (7 of 1913)" (w.e.f. 26-12-2014).
3. Subs. by s. 31, ibid., for sub-clause (i) and (ii) (w.e.f. 26-12-2014).
4. Clause (iii) omitted by Act 5 of 2015, s. 31 (w.e.f. 26-12-2014).
5. Certain words omitted by Act 62 of 1968, s. 14.
6. Subs. by Act 5 of 2015, s. 31 for "or in section 86B of the Indian Companies Act, 1913 (7 of 1913)" (w.e.f. 26-12-2014). | 3 | Provisions relating to managers, etc (4) No person shall have any right, whether in contract or otherwise, to any compensation for any loss incurred by reason of the operation of any provision of this section.]1.Ins.by Act 47 of 1950, s.23 (w.e.f.1-6-1950).2.Subs.by Act 5 of 2015, s.2, for "the Indian Companies Act, 1913 (7 of 1913)" (w.e.f.26-12-2014).3.Subs.by s.31, ibid., for sub-clause (i) and (ii) (w.e.f.26-12-2014).4.Clause (iii) omitted by Act 5 of 2015, s.31 (w.e.f.26-12-2014).5.Certain words omitted by Act 62 of 1968, s.14.6.Subs.by Act 5 of 2015, s.31 for "or in section 86B of the Indian Companies Act, 1913 (7 of 1913)" (w.e.f.26-12-2014). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18146§ionno=31B&orderno=52 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 31B | Power to restrict payment of excessive remuneration | 1[31B. Power to restrict payment of excessive remuneration. -- No insurer shall in respect of insurance business transacted by him, shall pay to any person by way of remuneration, whether by way of commission or otherwise in excess of such sum as may be specified by the regulations.]1. Subs. by s. 32, ibid., for section 31B (w.e.f. 26-12-2014). | 0 | Power to restrict payment of excessive remuneration 1[31B.Power to restrict payment of excessive remuneration.-- No insurer shall in respect of insurance business transacted by him, shall pay to any person by way of remuneration, whether by way of commission or otherwise in excess of such sum as may be specified by the regulations.]1.Subs.by s.32, ibid., for section 31B (w.e.f.26-12-2014). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18147§ionno=32&orderno=53 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 32 | [Omitted | [Limitation on employment of managing agents and on the remuneration payable to them]. --Omitted by the Insurance Laws (Amendment) Act, 2015 (5 of 2015), s. 33 (w.e.f. 26-12-2014). | 0 | [Omitted [Limitation on employment of managing agents and on the remuneration payable to them].--Omitted by the Insurance Laws (Amendment) Act, 2015 (5 of 2015), s.33 (w.e.f.26-12-2014). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18148§ionno=32A&orderno=54 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 32A | Prohibition of common officers and requirement as to whole-time officers | 1[32A. Prohibition of common officers and requirement as to whole-time officers. --(1) A managing director or other officer of an insurer 2*** carrying on life insurance business shall not be a managing director or other officer of any other insurer carrying on life insurance business or of a banking company or of an investment company:
Provided that the 3[Authority] may permit such managing director or other officer to be a managing director or other officer of any other insurer carrying on life insurance business for the purpose of amalgamating the business of the two insurers or transferring the business of one insurer to the other.
4* * * * *1. Ins. by Act 47 of 1950, s. 24 (w.e.f. 1-6-1950).
2. The words, brackets, letter and figures "specified in sub-clause (b) of clause (9) of section 2 and," omitted by Act 5 of 2015, s. 34 (w.e.f. 26-12-2014).
3. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Central Government" (w.e.f. 19-4-2000).
4. Sub-sections (2) and (3) omitted by Act 5 of 2015, s. 34 (w.e.f. 26-12-2014). | 0 | Prohibition of common officers and requirement as to whole-time officers 1[32A.Prohibition of common officers and requirement as to whole-time officers.--(1) A managing director or other officer of an insurer 2*** carrying on life insurance business shall not be a managing director or other officer of any other insurer carrying on life insurance business or of a banking company or of an investment company:
Provided that the 3[Authority] may permit such managing director or other officer to be a managing director or other officer of any other insurer carrying on life insurance business for the purpose of amalgamating the business of the two insurers or transferring the business of one insurer to the other.4* * * * *1.Ins.by Act 47 of 1950, s.24 (w.e.f.1-6-1950).2.The words, brackets, letter and figures "specified in sub-clause (b) of clause (9) of section 2 and," omitted by Act 5 of 2015, s.34 (w.e.f.26-12-2014).3.Subs.by Act 41 of 1999, s.30 and the First Schedule, for "Central Government" (w.e.f.19-4-2000).4.Sub-sections (2) and (3) omitted by Act 5 of 2015, s.34 (w.e.f.26-12-2014). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18149§ionno=32B&orderno=55 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 32B | Insurance business in rural and social sectors | 1[32B. Insurance business in 2[rural and social sectors].--Every insurer shall, after the commencement of the Insurance Regulatory and Development Authority Act, 1999 , undertake such percentages of life insurance business and general insurance business in the 2[rural and social sectors], as may by specified, in the Official Gazette by the Authority, in this behalf.]1. Ins. by Act 41 of 1999, s. 30 and the First Schedule (w.e.f. 19-4-2000).
2. Subs. by Act 5 of 2015, s. 35, for "rural or social sector" (w.e.f. 26-12-2014). | 0 | Insurance business in rural and social sectors 1[32B.Insurance business in 2[rural and social sectors].--Every insurer shall, after the commencement of the Insurance Regulatory and Development Authority Act, 1999 , undertake such percentages of life insurance business and general insurance business in the 2[rural and social sectors], as may by specified, in the Official Gazette by the Authority, in this behalf.]1.Ins.by Act 41 of 1999, s.30 and the First Schedule (w.e.f.19-4-2000).2.Subs.by Act 5 of 2015, s.35, for "rural or social sector" (w.e.f.26-12-2014). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18150§ionno=32C&orderno=56 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 32C | Obligations of insurer in respect of rural or unorganised sector and backward classes | 1[32C. Obligations of insurer in respect of rural or unorganised sector and backward classes. -- Every insurer shall, after the commencement of the Insurance Regulatory and Development Authority Act, 1999, discharge the obligations specified under section 32B to provide life insurance or general insurance policies to the persons residing in the rural sector, workers in the unorganised or informal sector or for economically vulnerable or backward classes of the society and other categories of persons as may specified by regulations made by the Authority and such insurance policies shall include insurance for crops.]1. Ins. by Act 41 of 1999, s. 30 and the First Schedule (w.e.f. 19-4-2000). | 0 | Obligations of insurer in respect of rural or unorganised sector and backward classes 1[32C.Obligations of insurer in respect of rural or unorganised sector and backward classes.-- Every insurer shall, after the commencement of the Insurance Regulatory and Development Authority Act, 1999, discharge the obligations specified under section 32B to provide life insurance or general insurance policies to the persons residing in the rural sector, workers in the unorganised or informal sector or for economically vulnerable or backward classes of the society and other categories of persons as may specified by regulations made by the Authority and such insurance policies shall include insurance for crops.]1.Ins.by Act 41 of 1999, s.30 and the First Schedule (w.e.f.19-4-2000). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18151§ionno=32D&orderno=57 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 32D | Obligation of insurer in respect of insurance business in third party risks of motor vehicles | 1[32D. Obligation of insurer in respect of insurance business in third party risks of motor vehicles. -- Every insurer carrying on general insurance business shall, after the commencement of the Insurance Laws (Amendment) Act, 2015 (5 of 2015), underwrite such minimum percentage of insurance business in third party risks of motor vehicles as may be specified by the regulations:
Provided that the Authority may, by regulations, exempt any insurer who is primarily engaged in the business of health, re-insurance, agriculture, export credit guarantee, from the application of this section.]1. Ins. by, s. 36, ibid. (w.e.f. 26-12-2014). | 0 | Obligation of insurer in respect of insurance business in third party risks of motor vehicles 1[32D.Obligation of insurer in respect of insurance business in third party risks of motor vehicles.-- Every insurer carrying on general insurance business shall, after the commencement of the Insurance Laws (Amendment) Act, 2015 (5 of 2015), underwrite such minimum percentage of insurance business in third party risks of motor vehicles as may be specified by the regulations:
Provided that the Authority may, by regulations, exempt any insurer who is primarily engaged in the business of health, re-insurance, agriculture, export credit guarantee, from the application of this section.]1.Ins.by, s.36, ibid.(w.e.f.26-12-2014). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18152§ionno=33&orderno=58 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 33 | Power of investigation and inspection by Authority | 1[ 2[33. Power of investigation and inspection by Authority. --(1) The Authority may, at any time, if it considers expedient to do so by order in writing, direct any person (herein referred to as "Investigating Officer") specified in the order to investigate the affairs of any insurer or intermediary or insurance intermediary, as the case may be, and to report to the Authority on any investigation made by such Investigating Officer:
Provided that the Investigating Officer may, wherever necessary, employ any auditor or actuary or both for the purpose of assisting him in any investigation under this section.
(2) Notwithstanding anything to the contrary contained in section 210 of the Companies Act, 2013 (18 of 2013), the Investigating Officer may, at any time, and shall, on being directed so to do by the Authority, cause an inspection to be made by one or more of his officers of the books of account of any insurer or intermediary or insurance intermediary, as the case may be, and the Investigating Officer shall supply to the insurer or intermediary or insurance intermediary, as the case may be, a copy of the report on such inspection.
(3) It shall be the duty of every manager, managing director or other officer of the insurer including a service provider, contractor of an insurer where services are outsourced by the insurer, or intermediary or insurance intermediary, as the case may be, to produce before the Investigating Officer directed to make the investigation under sub-section (1), or inspection under sub-section (2), all such books of account, registers, other documents and the database in his custody or power and to furnish him with any statement and information relating to the affairs of the insurer or intermediary or insurance intermediary, as the case may be, as the Investigating Officer may require of him within such time as the said Investigating Officer may specify.
(4) Any Investigating Officer, directed to make an investigation under subsection (1), or inspection under sub-section (2), may examine on oath, any manager, managing director or other officer of the insurer including a service provider or contractor where the services are outsourced by the insurer or intermediary or insurance intermediary, as the case may be, in relation to his business.
(5) The Investigating Officer shall, if he has been directed by the Authority to cause an inspection to be made, make a report to the Authority on such inspection.
(6) On receipt of any report under sub-section (1) or sub-section (5), the Authority may, after giving such opportunity to the insurer or intermediary or insurance intermediary, as the case may be, to make a representation in connection with the report as, in the opinion of the Authority, seems reasonable, by order in writing, --
(a) require the insurer, to take such action in respect of any matter arising out of the report as the Authority may think fit; or
(b) cancel the registration of the insurer or intermediary or insurance intermediary, as the case may be; or
(c) direct any person to apply to the court for the winding up of the insurer or intermediary or insurance intermediary, as the case may be, if it is a company, whether the registration of the insurer or intermediary or insurance intermediary, as the case may be, has been cancelled under clause (b) or not.
(7) The Authority may by the regulations made by it specify the minimum information to be maintained by insurers or intermediary or insurance intermediary, as the case may be, in their books, the manner in which such information shall be maintained, the checks and other verifications to be adopted by insurers or intermediary or insurance intermediary, as the case may be, in that connection and all other matters incidental thereto as are, in its opinion, necessary to enable the Investigating Officer to discharge satisfactorily his functions under this section.
Explanation.-- For the purposes of this section, the expression "insurer" shall include in the case of an insurer incorporated in India--
(a) all its subsidiaries formed for the purpose of carrying on the business of insurance exclusively outside India; and
(b) all its branches whether situated in India or outside India.
(8) Any insurer or intermediary or insurance intermediary aggrieved by any order made under this section may prefer an appeal to the Securities Appellate Tribunal.
(9) All expenses of, and incidental to, any investigation made under this section shall be defrayed by the insurer or intermediary or insurance intermediary, as the case may be, shall have priority over the debts due from the insurer and shall be recoverable as an arrear of land revenue.]]1. Subs. by Act 25 of 1942, s. 3 and the Second Schedule, for "Inspection".
2. Subs. by Act 5 of 2015, s. 37, for section 33 (w.e.f. 26-12-2014). | 0 | Power of investigation and inspection by Authority 1[ 2[33.Power of investigation and inspection by Authority.--(1) The Authority may, at any time, if it considers expedient to do so by order in writing, direct any person (herein referred to as "Investigating Officer") specified in the order to investigate the affairs of any insurer or intermediary or insurance intermediary, as the case may be, and to report to the Authority on any investigation made by such Investigating Officer:
Provided that the Investigating Officer may, wherever necessary, employ any auditor or actuary or both for the purpose of assisting him in any investigation under this section.(2) Notwithstanding anything to the contrary contained in section 210 of the Companies Act, 2013 (18 of 2013), the Investigating Officer may, at any time, and shall, on being directed so to do by the Authority, cause an inspection to be made by one or more of his officers of the books of account of any insurer or intermediary or insurance intermediary, as the case may be, and the Investigating Officer shall supply to the insurer or intermediary or insurance intermediary, as the case may be, a copy of the report on such inspection.(3) It shall be the duty of every manager, managing director or other officer of the insurer including a service provider, contractor of an insurer where services are outsourced by the insurer, or intermediary or insurance intermediary, as the case may be, to produce before the Investigating Officer directed to make the investigation under sub-section (1), or inspection under sub-section (2), all such books of account, registers, other documents and the database in his custody or power and to furnish him with any statement and information relating to the affairs of the insurer or intermediary or insurance intermediary, as the case may be, as the Investigating Officer may require of him within such time as the said Investigating Officer may specify.(4) Any Investigating Officer, directed to make an investigation under subsection (1), or inspection under sub-section (2), may examine on oath, any manager, managing director or other officer of the insurer including a service provider or contractor where the services are outsourced by the insurer or intermediary or insurance intermediary, as the case may be, in relation to his business.(5) The Investigating Officer shall, if he has been directed by the Authority to cause an inspection to be made, make a report to the Authority on such inspection. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18152§ionno=33&orderno=58 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 33 | Power of investigation and inspection by Authority | 1[ 2[33. Power of investigation and inspection by Authority. --(1) The Authority may, at any time, if it considers expedient to do so by order in writing, direct any person (herein referred to as "Investigating Officer") specified in the order to investigate the affairs of any insurer or intermediary or insurance intermediary, as the case may be, and to report to the Authority on any investigation made by such Investigating Officer:
Provided that the Investigating Officer may, wherever necessary, employ any auditor or actuary or both for the purpose of assisting him in any investigation under this section.
(2) Notwithstanding anything to the contrary contained in section 210 of the Companies Act, 2013 (18 of 2013), the Investigating Officer may, at any time, and shall, on being directed so to do by the Authority, cause an inspection to be made by one or more of his officers of the books of account of any insurer or intermediary or insurance intermediary, as the case may be, and the Investigating Officer shall supply to the insurer or intermediary or insurance intermediary, as the case may be, a copy of the report on such inspection.
(3) It shall be the duty of every manager, managing director or other officer of the insurer including a service provider, contractor of an insurer where services are outsourced by the insurer, or intermediary or insurance intermediary, as the case may be, to produce before the Investigating Officer directed to make the investigation under sub-section (1), or inspection under sub-section (2), all such books of account, registers, other documents and the database in his custody or power and to furnish him with any statement and information relating to the affairs of the insurer or intermediary or insurance intermediary, as the case may be, as the Investigating Officer may require of him within such time as the said Investigating Officer may specify.
(4) Any Investigating Officer, directed to make an investigation under subsection (1), or inspection under sub-section (2), may examine on oath, any manager, managing director or other officer of the insurer including a service provider or contractor where the services are outsourced by the insurer or intermediary or insurance intermediary, as the case may be, in relation to his business.
(5) The Investigating Officer shall, if he has been directed by the Authority to cause an inspection to be made, make a report to the Authority on such inspection.
(6) On receipt of any report under sub-section (1) or sub-section (5), the Authority may, after giving such opportunity to the insurer or intermediary or insurance intermediary, as the case may be, to make a representation in connection with the report as, in the opinion of the Authority, seems reasonable, by order in writing, --
(a) require the insurer, to take such action in respect of any matter arising out of the report as the Authority may think fit; or
(b) cancel the registration of the insurer or intermediary or insurance intermediary, as the case may be; or
(c) direct any person to apply to the court for the winding up of the insurer or intermediary or insurance intermediary, as the case may be, if it is a company, whether the registration of the insurer or intermediary or insurance intermediary, as the case may be, has been cancelled under clause (b) or not.
(7) The Authority may by the regulations made by it specify the minimum information to be maintained by insurers or intermediary or insurance intermediary, as the case may be, in their books, the manner in which such information shall be maintained, the checks and other verifications to be adopted by insurers or intermediary or insurance intermediary, as the case may be, in that connection and all other matters incidental thereto as are, in its opinion, necessary to enable the Investigating Officer to discharge satisfactorily his functions under this section.
Explanation.-- For the purposes of this section, the expression "insurer" shall include in the case of an insurer incorporated in India--
(a) all its subsidiaries formed for the purpose of carrying on the business of insurance exclusively outside India; and
(b) all its branches whether situated in India or outside India.
(8) Any insurer or intermediary or insurance intermediary aggrieved by any order made under this section may prefer an appeal to the Securities Appellate Tribunal.
(9) All expenses of, and incidental to, any investigation made under this section shall be defrayed by the insurer or intermediary or insurance intermediary, as the case may be, shall have priority over the debts due from the insurer and shall be recoverable as an arrear of land revenue.]]1. Subs. by Act 25 of 1942, s. 3 and the Second Schedule, for "Inspection".
2. Subs. by Act 5 of 2015, s. 37, for section 33 (w.e.f. 26-12-2014). | 1 | Power of investigation and inspection by Authority (6) On receipt of any report under sub-section (1) or sub-section (5), the Authority may, after giving such opportunity to the insurer or intermediary or insurance intermediary, as the case may be, to make a representation in connection with the report as, in the opinion of the Authority, seems reasonable, by order in writing, --
(a) require the insurer, to take such action in respect of any matter arising out of the report as the Authority may think fit; or
(b) cancel the registration of the insurer or intermediary or insurance intermediary, as the case may be; or
(c) direct any person to apply to the court for the winding up of the insurer or intermediary or insurance intermediary, as the case may be, if it is a company, whether the registration of the insurer or intermediary or insurance intermediary, as the case may be, has been cancelled under clause (b) or not. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18152§ionno=33&orderno=58 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 33 | Power of investigation and inspection by Authority | 1[ 2[33. Power of investigation and inspection by Authority. --(1) The Authority may, at any time, if it considers expedient to do so by order in writing, direct any person (herein referred to as "Investigating Officer") specified in the order to investigate the affairs of any insurer or intermediary or insurance intermediary, as the case may be, and to report to the Authority on any investigation made by such Investigating Officer:
Provided that the Investigating Officer may, wherever necessary, employ any auditor or actuary or both for the purpose of assisting him in any investigation under this section.
(2) Notwithstanding anything to the contrary contained in section 210 of the Companies Act, 2013 (18 of 2013), the Investigating Officer may, at any time, and shall, on being directed so to do by the Authority, cause an inspection to be made by one or more of his officers of the books of account of any insurer or intermediary or insurance intermediary, as the case may be, and the Investigating Officer shall supply to the insurer or intermediary or insurance intermediary, as the case may be, a copy of the report on such inspection.
(3) It shall be the duty of every manager, managing director or other officer of the insurer including a service provider, contractor of an insurer where services are outsourced by the insurer, or intermediary or insurance intermediary, as the case may be, to produce before the Investigating Officer directed to make the investigation under sub-section (1), or inspection under sub-section (2), all such books of account, registers, other documents and the database in his custody or power and to furnish him with any statement and information relating to the affairs of the insurer or intermediary or insurance intermediary, as the case may be, as the Investigating Officer may require of him within such time as the said Investigating Officer may specify.
(4) Any Investigating Officer, directed to make an investigation under subsection (1), or inspection under sub-section (2), may examine on oath, any manager, managing director or other officer of the insurer including a service provider or contractor where the services are outsourced by the insurer or intermediary or insurance intermediary, as the case may be, in relation to his business.
(5) The Investigating Officer shall, if he has been directed by the Authority to cause an inspection to be made, make a report to the Authority on such inspection.
(6) On receipt of any report under sub-section (1) or sub-section (5), the Authority may, after giving such opportunity to the insurer or intermediary or insurance intermediary, as the case may be, to make a representation in connection with the report as, in the opinion of the Authority, seems reasonable, by order in writing, --
(a) require the insurer, to take such action in respect of any matter arising out of the report as the Authority may think fit; or
(b) cancel the registration of the insurer or intermediary or insurance intermediary, as the case may be; or
(c) direct any person to apply to the court for the winding up of the insurer or intermediary or insurance intermediary, as the case may be, if it is a company, whether the registration of the insurer or intermediary or insurance intermediary, as the case may be, has been cancelled under clause (b) or not.
(7) The Authority may by the regulations made by it specify the minimum information to be maintained by insurers or intermediary or insurance intermediary, as the case may be, in their books, the manner in which such information shall be maintained, the checks and other verifications to be adopted by insurers or intermediary or insurance intermediary, as the case may be, in that connection and all other matters incidental thereto as are, in its opinion, necessary to enable the Investigating Officer to discharge satisfactorily his functions under this section.
Explanation.-- For the purposes of this section, the expression "insurer" shall include in the case of an insurer incorporated in India--
(a) all its subsidiaries formed for the purpose of carrying on the business of insurance exclusively outside India; and
(b) all its branches whether situated in India or outside India.
(8) Any insurer or intermediary or insurance intermediary aggrieved by any order made under this section may prefer an appeal to the Securities Appellate Tribunal.
(9) All expenses of, and incidental to, any investigation made under this section shall be defrayed by the insurer or intermediary or insurance intermediary, as the case may be, shall have priority over the debts due from the insurer and shall be recoverable as an arrear of land revenue.]]1. Subs. by Act 25 of 1942, s. 3 and the Second Schedule, for "Inspection".
2. Subs. by Act 5 of 2015, s. 37, for section 33 (w.e.f. 26-12-2014). | 2 | Power of investigation and inspection by Authority |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18152§ionno=33&orderno=58 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 33 | Power of investigation and inspection by Authority | 1[ 2[33. Power of investigation and inspection by Authority. --(1) The Authority may, at any time, if it considers expedient to do so by order in writing, direct any person (herein referred to as "Investigating Officer") specified in the order to investigate the affairs of any insurer or intermediary or insurance intermediary, as the case may be, and to report to the Authority on any investigation made by such Investigating Officer:
Provided that the Investigating Officer may, wherever necessary, employ any auditor or actuary or both for the purpose of assisting him in any investigation under this section.
(2) Notwithstanding anything to the contrary contained in section 210 of the Companies Act, 2013 (18 of 2013), the Investigating Officer may, at any time, and shall, on being directed so to do by the Authority, cause an inspection to be made by one or more of his officers of the books of account of any insurer or intermediary or insurance intermediary, as the case may be, and the Investigating Officer shall supply to the insurer or intermediary or insurance intermediary, as the case may be, a copy of the report on such inspection.
(3) It shall be the duty of every manager, managing director or other officer of the insurer including a service provider, contractor of an insurer where services are outsourced by the insurer, or intermediary or insurance intermediary, as the case may be, to produce before the Investigating Officer directed to make the investigation under sub-section (1), or inspection under sub-section (2), all such books of account, registers, other documents and the database in his custody or power and to furnish him with any statement and information relating to the affairs of the insurer or intermediary or insurance intermediary, as the case may be, as the Investigating Officer may require of him within such time as the said Investigating Officer may specify.
(4) Any Investigating Officer, directed to make an investigation under subsection (1), or inspection under sub-section (2), may examine on oath, any manager, managing director or other officer of the insurer including a service provider or contractor where the services are outsourced by the insurer or intermediary or insurance intermediary, as the case may be, in relation to his business.
(5) The Investigating Officer shall, if he has been directed by the Authority to cause an inspection to be made, make a report to the Authority on such inspection.
(6) On receipt of any report under sub-section (1) or sub-section (5), the Authority may, after giving such opportunity to the insurer or intermediary or insurance intermediary, as the case may be, to make a representation in connection with the report as, in the opinion of the Authority, seems reasonable, by order in writing, --
(a) require the insurer, to take such action in respect of any matter arising out of the report as the Authority may think fit; or
(b) cancel the registration of the insurer or intermediary or insurance intermediary, as the case may be; or
(c) direct any person to apply to the court for the winding up of the insurer or intermediary or insurance intermediary, as the case may be, if it is a company, whether the registration of the insurer or intermediary or insurance intermediary, as the case may be, has been cancelled under clause (b) or not.
(7) The Authority may by the regulations made by it specify the minimum information to be maintained by insurers or intermediary or insurance intermediary, as the case may be, in their books, the manner in which such information shall be maintained, the checks and other verifications to be adopted by insurers or intermediary or insurance intermediary, as the case may be, in that connection and all other matters incidental thereto as are, in its opinion, necessary to enable the Investigating Officer to discharge satisfactorily his functions under this section.
Explanation.-- For the purposes of this section, the expression "insurer" shall include in the case of an insurer incorporated in India--
(a) all its subsidiaries formed for the purpose of carrying on the business of insurance exclusively outside India; and
(b) all its branches whether situated in India or outside India.
(8) Any insurer or intermediary or insurance intermediary aggrieved by any order made under this section may prefer an appeal to the Securities Appellate Tribunal.
(9) All expenses of, and incidental to, any investigation made under this section shall be defrayed by the insurer or intermediary or insurance intermediary, as the case may be, shall have priority over the debts due from the insurer and shall be recoverable as an arrear of land revenue.]]1. Subs. by Act 25 of 1942, s. 3 and the Second Schedule, for "Inspection".
2. Subs. by Act 5 of 2015, s. 37, for section 33 (w.e.f. 26-12-2014). | 3 | Power of investigation and inspection by Authority |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18152§ionno=33&orderno=58 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 33 | Power of investigation and inspection by Authority | 1[ 2[33. Power of investigation and inspection by Authority. --(1) The Authority may, at any time, if it considers expedient to do so by order in writing, direct any person (herein referred to as "Investigating Officer") specified in the order to investigate the affairs of any insurer or intermediary or insurance intermediary, as the case may be, and to report to the Authority on any investigation made by such Investigating Officer:
Provided that the Investigating Officer may, wherever necessary, employ any auditor or actuary or both for the purpose of assisting him in any investigation under this section.
(2) Notwithstanding anything to the contrary contained in section 210 of the Companies Act, 2013 (18 of 2013), the Investigating Officer may, at any time, and shall, on being directed so to do by the Authority, cause an inspection to be made by one or more of his officers of the books of account of any insurer or intermediary or insurance intermediary, as the case may be, and the Investigating Officer shall supply to the insurer or intermediary or insurance intermediary, as the case may be, a copy of the report on such inspection.
(3) It shall be the duty of every manager, managing director or other officer of the insurer including a service provider, contractor of an insurer where services are outsourced by the insurer, or intermediary or insurance intermediary, as the case may be, to produce before the Investigating Officer directed to make the investigation under sub-section (1), or inspection under sub-section (2), all such books of account, registers, other documents and the database in his custody or power and to furnish him with any statement and information relating to the affairs of the insurer or intermediary or insurance intermediary, as the case may be, as the Investigating Officer may require of him within such time as the said Investigating Officer may specify.
(4) Any Investigating Officer, directed to make an investigation under subsection (1), or inspection under sub-section (2), may examine on oath, any manager, managing director or other officer of the insurer including a service provider or contractor where the services are outsourced by the insurer or intermediary or insurance intermediary, as the case may be, in relation to his business.
(5) The Investigating Officer shall, if he has been directed by the Authority to cause an inspection to be made, make a report to the Authority on such inspection.
(6) On receipt of any report under sub-section (1) or sub-section (5), the Authority may, after giving such opportunity to the insurer or intermediary or insurance intermediary, as the case may be, to make a representation in connection with the report as, in the opinion of the Authority, seems reasonable, by order in writing, --
(a) require the insurer, to take such action in respect of any matter arising out of the report as the Authority may think fit; or
(b) cancel the registration of the insurer or intermediary or insurance intermediary, as the case may be; or
(c) direct any person to apply to the court for the winding up of the insurer or intermediary or insurance intermediary, as the case may be, if it is a company, whether the registration of the insurer or intermediary or insurance intermediary, as the case may be, has been cancelled under clause (b) or not.
(7) The Authority may by the regulations made by it specify the minimum information to be maintained by insurers or intermediary or insurance intermediary, as the case may be, in their books, the manner in which such information shall be maintained, the checks and other verifications to be adopted by insurers or intermediary or insurance intermediary, as the case may be, in that connection and all other matters incidental thereto as are, in its opinion, necessary to enable the Investigating Officer to discharge satisfactorily his functions under this section.
Explanation.-- For the purposes of this section, the expression "insurer" shall include in the case of an insurer incorporated in India--
(a) all its subsidiaries formed for the purpose of carrying on the business of insurance exclusively outside India; and
(b) all its branches whether situated in India or outside India.
(8) Any insurer or intermediary or insurance intermediary aggrieved by any order made under this section may prefer an appeal to the Securities Appellate Tribunal.
(9) All expenses of, and incidental to, any investigation made under this section shall be defrayed by the insurer or intermediary or insurance intermediary, as the case may be, shall have priority over the debts due from the insurer and shall be recoverable as an arrear of land revenue.]]1. Subs. by Act 25 of 1942, s. 3 and the Second Schedule, for "Inspection".
2. Subs. by Act 5 of 2015, s. 37, for section 33 (w.e.f. 26-12-2014). | 4 | Power of investigation and inspection by Authority (7) The Authority may by the regulations made by it specify the minimum information to be maintained by insurers or intermediary or insurance intermediary, as the case may be, in their books, the manner in which such information shall be maintained, the checks and other verifications to be adopted by insurers or intermediary or insurance intermediary, as the case may be, in that connection and all other matters incidental thereto as are, in its opinion, necessary to enable the Investigating Officer to discharge satisfactorily his functions under this section.Explanation.-- For the purposes of this section, the expression "insurer" shall include in the case of an insurer incorporated in India--
(a) all its subsidiaries formed for the purpose of carrying on the business of insurance exclusively outside India; and
(b) all its branches whether situated in India or outside India.(8) Any insurer or intermediary or insurance intermediary aggrieved by any order made under this section may prefer an appeal to the Securities Appellate Tribunal.(9) All expenses of, and incidental to, any investigation made under this section shall be defrayed by the insurer or intermediary or insurance intermediary, as the case may be, shall have priority over the debts due from the insurer and shall be recoverable as an arrear of land revenue.]]1.Subs.by Act 25 of 1942, s.3 and the Second Schedule, for "Inspection".2.Subs.by Act 5 of 2015, s.37, for section 33 (w.e.f.26-12-2014). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18153§ionno=33A&orderno=59 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 33A | Power to appoint staff | 1[33A. Power to appoint staff. --The 2*** 3[Authority] may appoint such staff, and at such places at it or he may consider necessary, for the scrutiny of the returns, statements and information furnished by insurers under this Act and generally to ensure the efficient performance of the functions of the 4 [Authority] under this Act.]1. Ins. by Act 62 of 1968, s. 16 (w.e.f. 1-6-1969).
2. The words "Central Government or the" omitted by Act 41 of 1999, s. 30 and the First Schedule (w.e.f. 19-4-2000).
3. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000).
4. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000). | 0 | Power to appoint staff 1[33A.Power to appoint staff.--The 2*** 3[Authority] may appoint such staff, and at such places at it or he may consider necessary, for the scrutiny of the returns, statements and information furnished by insurers under this Act and generally to ensure the efficient performance of the functions of the 4 [Authority] under this Act.]1.Ins.by Act 62 of 1968, s.16 (w.e.f.1-6-1969).2.The words "Central Government or the" omitted by Act 41 of 1999, s.30 and the First Schedule (w.e.f.19-4-2000).3.Subs.by Act 41 of 1999, s.30 and the First Schedule, for "Controller" (w.e.f.19-4-2000).4.Subs.by Act 41 of 1999, s.30 and the First Schedule, for "Controller" (w.e.f.19-4-2000). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18154§ionno=34&orderno=60 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 34 | Power of the Authority to issue directions | 1[34. Power of the 2[Authority] to issue directions. --(1) Where the 2[Authority] is satisfied that--
(a) in the public interest; or
(b) to prevent the affairs of any insurer being conducted in a manner detrimental to the interests of the policy-holders or in a manner prejudicial to the interests of the insurer; or
(c) generally to secure the proper management of any insurer,
it is necessary to issue directions to insurers generally or to any insurer in particular, he may, from time to time, issue such directions as he deems fit, and the insurers or the insurer, as the case may be, shall be bound to comply with such directions:
Provided that no such direction shall be issued to any insurer in particular unless such insurer has been given a reasonable opportunity of being heard.
(2) The 2[Authority] may, on representation made to him or on his own motion, modify or cancel any direction issued under sub-section (1), and in so modifying or cancelling any direction, may impose such conditions as he thinks fit, subject to which the modification or cancellation shall have effect.]1. Ins. by Act 62 of 1968, s. 16 (w.e.f. 1-6-1969).
2. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000). | 0 | Power of the Authority to issue directions 1[34.Power of the 2[Authority] to issue directions.--(1) Where the 2[Authority] is satisfied that--
(a) in the public interest; or
(b) to prevent the affairs of any insurer being conducted in a manner detrimental to the interests of the policy-holders or in a manner prejudicial to the interests of the insurer; or
(c) generally to secure the proper management of any insurer,
it is necessary to issue directions to insurers generally or to any insurer in particular, he may, from time to time, issue such directions as he deems fit, and the insurers or the insurer, as the case may be, shall be bound to comply with such directions:
Provided that no such direction shall be issued to any insurer in particular unless such insurer has been given a reasonable opportunity of being heard.(2) The 2[Authority] may, on representation made to him or on his own motion, modify or cancel any direction issued under sub-section (1), and in so modifying or cancelling any direction, may impose such conditions as he thinks fit, subject to which the modification or cancellation shall have effect.]1.Ins.by Act 62 of 1968, s.16 (w.e.f.1-6-1969).2.Subs.by Act 41 of 1999, s.30 and the First Schedule, for "Controller" (w.e.f.19-4-2000). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18155§ionno=34A&orderno=61 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 34A | Amendment of provisions relating to appointments of managing directors, etc | 34A. Amendment of provisions relating to appointments of managing directors, etc., to be subject to previous approval of the 1[Authority]. -- (1) In the case of an insurer, --
(a) no amendment made after the commencement of the Insurance (Amendment) Act, 1968, of any provision relating to the appointment, reappointment, termination of appointment or remuneration of a managing or whole-time director, or of a manager or a chief executive officer, by whatever name called, whether that provision be contained in the insurer's memorandum or articles of association, or in an agreement entered into by him, or in any resolution passed by the insurer in general meeting or by his Board of directors shall have effect unless approved by the 1[Authority];
(b) no appointment, re-appointment or termination of appointment, made after the commencement of the Insurance (Amendment) Act, 1968 , of a managing or whole-time director, or a manager or a chief executive officer, by whatever name called, shall have effect unless such appointment, reappointment or termination of appointment is made with the previous approval of the 139[Authority].
Explanation-- For the purposes of this sub-section, any provision conferring any benefit or providing any amenity or perquisite, in whatever form, whether during or after the termination of the term of office of the manager or the chief executive officer, by whatever name called, or a managing or whole-time director, shall be deemed to be a provision relating to his remuneration.
(2) Nothing contained in sections 268 and 269 , the proviso to sub-section (3) of section 309, sections 310 and 311 , the proviso to section 387 , and section 388 (in so far as section 388 makes the provisions of sections 310 and 311 apply in relation to the manager of a company) of the Companies Act, 1956 (1 of 1956), shall apply to any matter in respect of which the approval of the 2[authority] has to be obtained under sub-section (1).
(3) No act done by a person as a managing or whole-time director or a director not liable to retire by rotation or a manager or a chief executive officer, by whatever name called, shall be deemed to be invalid on the ground that it is subsequently discovered that hi s appointment or re-appointment had not taken effect by reason of any of the provisions of this Act; but nothing in this sub-section shall be construed as rendering valid any act done by such person after hi s appointment or re-appointment has been shown to the insurer not to have had effect.1. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000).
2. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000). | 0 | Amendment of provisions relating to appointments of managing directors, etc 34A.Amendment of provisions relating to appointments of managing directors, etc., to be subject to previous approval of the 1[Authority].-- (1) In the case of an insurer, --
(a) no amendment made after the commencement of the Insurance (Amendment) Act, 1968, of any provision relating to the appointment, reappointment, termination of appointment or remuneration of a managing or whole-time director, or of a manager or a chief executive officer, by whatever name called, whether that provision be contained in the insurer's memorandum or articles of association, or in an agreement entered into by him, or in any resolution passed by the insurer in general meeting or by his Board of directors shall have effect unless approved by the 1[Authority];
(b) no appointment, re-appointment or termination of appointment, made after the commencement of the Insurance (Amendment) Act, 1968 , of a managing or whole-time director, or a manager or a chief executive officer, by whatever name called, shall have effect unless such appointment, reappointment or termination of appointment is made with the previous approval of the 139[Authority].Explanation-- For the purposes of this sub-section, any provision conferring any benefit or providing any amenity or perquisite, in whatever form, whether during or after the termination of the term of office of the manager or the chief executive officer, by whatever name called, or a managing or whole-time director, shall be deemed to be a provision relating to his remuneration.(2) Nothing contained in sections 268 and 269 , the proviso to sub-section (3) of section 309, sections 310 and 311 , the proviso to section 387 , and section 388 (in so far as section 388 makes the provisions of sections 310 and 311 apply in relation to the manager of a company) of the Companies Act, 1956 (1 of 1956), shall apply to any matter in respect of which the approval of the 2[authority] has to be obtained under sub-section (1).(3) No act done by a person as a managing or whole-time director or a director not liable to retire by rotation or a manager or a chief executive officer, by whatever name called, shall be deemed to be invalid on the ground that it is subsequently discovered that hi s appointment or re-appointment had not taken effect by reason of any of the provisions of this Act; but nothing in this sub-section shall be construed as rendering valid any act done by such person after hi s appointment or re-appointment has been shown to the insurer not to have had effect.1.Subs.by Act 41 of 1999, s.30 and the First Schedule, for "Controller" (w.e.f.19-4-2000).2.Subs.by Act 41 of 1999, s.30 and the First Schedule, for "Controller" (w.e.f.19-4-2000). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18156§ionno=34B&orderno=62 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 34B | Power of Authority to remove managerial persons from office | 34B. Power of 1[Authority] to remove managerial persons from office. --(1) Where the 1[Authority] is satisfied that in the public interest or for preventing the affairs of an insurer being conducted in a manner detrimental to the interests of the policy-holders or for securing the proper management of any insurer it is necessary so to do, he may, for reasons to be recorded in writing, by order, remove from office, with effect from such date as may be specified in the order, any director or the chief executive officer, by whatever name called, of the insurer.
(2) No order under sub-section (1) shall be made unless the director or chief executive officer concerned has been given a reasonable opportunity of making a representation to the 1[Authority] against the proposed order:
Provided that if, in the opinion of the 1[Authority], any delay would be detrimental to the interests of the insurer or his policy-holders, he may, at the time of giving the opportunity aforesaid or at any time thereafter, by order direct that, pending the consideration of the representation aforesaid, if any, the director or, as the case may be, chief executive officer, shall not, with effect from the date of such order, --
(a) act as such director or chief executive officer of the insurer;
(b) in any way, whether directly or indirectly, be concerned with, or take part in, the management of the insurer.
(3) Where any order is made in respect of a director or chief executive officer of an insurer under sub-section (1), he shall cease to be a director or, as the case may be, chief executive officer of the insurer and shall not, in any way, whether directly or indirectly, be concerned with, or take part it, the management of any insurer for such period not exceeding five years as may be specified in the order.
2[(4) If any person in respect of whom an order is made by the Authority under sub-section (1) or under the proviso to sub-section (2), contravenes the provisions of this section, he shall be liable to a penalty of one lakh rupees for each day during which such contravention continues or one crore rupees, whichever is less.]
(5) Where an order under subsection (1) has been made, the 1[Authority] may, by order in writing, appoint a suitable person in place of the director or chief executive officer who has been removed from his office under that sub-section, with effect from such date as may be specified in the order.
(6) Any person appointed as director or chief executive officer under this section shall--
(a) hold office during the pleasure of the 1[Authority] and subject thereto for a period not exceeding three years or such farther periods not exceeding three years at a time as the 1[Authority] may specify;
(b) not insure any obligation or liability by reason only of hi s being a director or chief executive officer or for anything done or omitted to be done in good faith in the execution of the duties of his office or in relation thereto.
(7) Notwithstanding anything contained in any law or in any contract, memorandum or articles of association, on the removal of a person from office under this section, that person shall not be entitled to claim any compensation for the loss or termination of office.]1. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000).
2. Subs. by Act 5 of 2015, s. 38, for sub-section (4) (w.e.f. 26-12-2014). | 0 | Power of Authority to remove managerial persons from office 34B.Power of 1[Authority] to remove managerial persons from office.--(1) Where the 1[Authority] is satisfied that in the public interest or for preventing the affairs of an insurer being conducted in a manner detrimental to the interests of the policy-holders or for securing the proper management of any insurer it is necessary so to do, he may, for reasons to be recorded in writing, by order, remove from office, with effect from such date as may be specified in the order, any director or the chief executive officer, by whatever name called, of the insurer.(2) No order under sub-section (1) shall be made unless the director or chief executive officer concerned has been given a reasonable opportunity of making a representation to the 1[Authority] against the proposed order:
Provided that if, in the opinion of the 1[Authority], any delay would be detrimental to the interests of the insurer or his policy-holders, he may, at the time of giving the opportunity aforesaid or at any time thereafter, by order direct that, pending the consideration of the representation aforesaid, if any, the director or, as the case may be, chief executive officer, shall not, with effect from the date of such order, --
(a) act as such director or chief executive officer of the insurer;
(b) in any way, whether directly or indirectly, be concerned with, or take part in, the management of the insurer.(3) Where any order is made in respect of a director or chief executive officer of an insurer under sub-section (1), he shall cease to be a director or, as the case may be, chief executive officer of the insurer and shall not, in any way, whether directly or indirectly, be concerned with, or take part it, the management of any insurer for such period not exceeding five years as may be specified in the order.2[(4) If any person in respect of whom an order is made by the Authority under sub-section (1) or under the proviso to sub-section (2), contravenes the provisions of this section, he shall be liable to a penalty of one lakh rupees for each day during which such contravention continues or one crore rupees, whichever is less.]
(5) Where an order under subsection (1) has been made, the 1[Authority] may, by order in writing, appoint a suitable person in place of the director or chief executive officer who has been removed from his office under that sub-section, with effect from such date as may be specified in the order. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18156§ionno=34B&orderno=62 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 34B | Power of Authority to remove managerial persons from office | 34B. Power of 1[Authority] to remove managerial persons from office. --(1) Where the 1[Authority] is satisfied that in the public interest or for preventing the affairs of an insurer being conducted in a manner detrimental to the interests of the policy-holders or for securing the proper management of any insurer it is necessary so to do, he may, for reasons to be recorded in writing, by order, remove from office, with effect from such date as may be specified in the order, any director or the chief executive officer, by whatever name called, of the insurer.
(2) No order under sub-section (1) shall be made unless the director or chief executive officer concerned has been given a reasonable opportunity of making a representation to the 1[Authority] against the proposed order:
Provided that if, in the opinion of the 1[Authority], any delay would be detrimental to the interests of the insurer or his policy-holders, he may, at the time of giving the opportunity aforesaid or at any time thereafter, by order direct that, pending the consideration of the representation aforesaid, if any, the director or, as the case may be, chief executive officer, shall not, with effect from the date of such order, --
(a) act as such director or chief executive officer of the insurer;
(b) in any way, whether directly or indirectly, be concerned with, or take part in, the management of the insurer.
(3) Where any order is made in respect of a director or chief executive officer of an insurer under sub-section (1), he shall cease to be a director or, as the case may be, chief executive officer of the insurer and shall not, in any way, whether directly or indirectly, be concerned with, or take part it, the management of any insurer for such period not exceeding five years as may be specified in the order.
2[(4) If any person in respect of whom an order is made by the Authority under sub-section (1) or under the proviso to sub-section (2), contravenes the provisions of this section, he shall be liable to a penalty of one lakh rupees for each day during which such contravention continues or one crore rupees, whichever is less.]
(5) Where an order under subsection (1) has been made, the 1[Authority] may, by order in writing, appoint a suitable person in place of the director or chief executive officer who has been removed from his office under that sub-section, with effect from such date as may be specified in the order.
(6) Any person appointed as director or chief executive officer under this section shall--
(a) hold office during the pleasure of the 1[Authority] and subject thereto for a period not exceeding three years or such farther periods not exceeding three years at a time as the 1[Authority] may specify;
(b) not insure any obligation or liability by reason only of hi s being a director or chief executive officer or for anything done or omitted to be done in good faith in the execution of the duties of his office or in relation thereto.
(7) Notwithstanding anything contained in any law or in any contract, memorandum or articles of association, on the removal of a person from office under this section, that person shall not be entitled to claim any compensation for the loss or termination of office.]1. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000).
2. Subs. by Act 5 of 2015, s. 38, for sub-section (4) (w.e.f. 26-12-2014). | 1 | Power of Authority to remove managerial persons from office (6) Any person appointed as director or chief executive officer under this section shall--
(a) hold office during the pleasure of the 1[Authority] and subject thereto for a period not exceeding three years or such farther periods not exceeding three years at a time as the 1[Authority] may specify;
(b) not insure any obligation or liability by reason only of hi s being a director or chief executive officer or for anything done or omitted to be done in good faith in the execution of the duties of his office or in relation thereto. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18156§ionno=34B&orderno=62 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 34B | Power of Authority to remove managerial persons from office | 34B. Power of 1[Authority] to remove managerial persons from office. --(1) Where the 1[Authority] is satisfied that in the public interest or for preventing the affairs of an insurer being conducted in a manner detrimental to the interests of the policy-holders or for securing the proper management of any insurer it is necessary so to do, he may, for reasons to be recorded in writing, by order, remove from office, with effect from such date as may be specified in the order, any director or the chief executive officer, by whatever name called, of the insurer.
(2) No order under sub-section (1) shall be made unless the director or chief executive officer concerned has been given a reasonable opportunity of making a representation to the 1[Authority] against the proposed order:
Provided that if, in the opinion of the 1[Authority], any delay would be detrimental to the interests of the insurer or his policy-holders, he may, at the time of giving the opportunity aforesaid or at any time thereafter, by order direct that, pending the consideration of the representation aforesaid, if any, the director or, as the case may be, chief executive officer, shall not, with effect from the date of such order, --
(a) act as such director or chief executive officer of the insurer;
(b) in any way, whether directly or indirectly, be concerned with, or take part in, the management of the insurer.
(3) Where any order is made in respect of a director or chief executive officer of an insurer under sub-section (1), he shall cease to be a director or, as the case may be, chief executive officer of the insurer and shall not, in any way, whether directly or indirectly, be concerned with, or take part it, the management of any insurer for such period not exceeding five years as may be specified in the order.
2[(4) If any person in respect of whom an order is made by the Authority under sub-section (1) or under the proviso to sub-section (2), contravenes the provisions of this section, he shall be liable to a penalty of one lakh rupees for each day during which such contravention continues or one crore rupees, whichever is less.]
(5) Where an order under subsection (1) has been made, the 1[Authority] may, by order in writing, appoint a suitable person in place of the director or chief executive officer who has been removed from his office under that sub-section, with effect from such date as may be specified in the order.
(6) Any person appointed as director or chief executive officer under this section shall--
(a) hold office during the pleasure of the 1[Authority] and subject thereto for a period not exceeding three years or such farther periods not exceeding three years at a time as the 1[Authority] may specify;
(b) not insure any obligation or liability by reason only of hi s being a director or chief executive officer or for anything done or omitted to be done in good faith in the execution of the duties of his office or in relation thereto.
(7) Notwithstanding anything contained in any law or in any contract, memorandum or articles of association, on the removal of a person from office under this section, that person shall not be entitled to claim any compensation for the loss or termination of office.]1. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000).
2. Subs. by Act 5 of 2015, s. 38, for sub-section (4) (w.e.f. 26-12-2014). | 2 | Power of Authority to remove managerial persons from office |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18156§ionno=34B&orderno=62 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 34B | Power of Authority to remove managerial persons from office | 34B. Power of 1[Authority] to remove managerial persons from office. --(1) Where the 1[Authority] is satisfied that in the public interest or for preventing the affairs of an insurer being conducted in a manner detrimental to the interests of the policy-holders or for securing the proper management of any insurer it is necessary so to do, he may, for reasons to be recorded in writing, by order, remove from office, with effect from such date as may be specified in the order, any director or the chief executive officer, by whatever name called, of the insurer.
(2) No order under sub-section (1) shall be made unless the director or chief executive officer concerned has been given a reasonable opportunity of making a representation to the 1[Authority] against the proposed order:
Provided that if, in the opinion of the 1[Authority], any delay would be detrimental to the interests of the insurer or his policy-holders, he may, at the time of giving the opportunity aforesaid or at any time thereafter, by order direct that, pending the consideration of the representation aforesaid, if any, the director or, as the case may be, chief executive officer, shall not, with effect from the date of such order, --
(a) act as such director or chief executive officer of the insurer;
(b) in any way, whether directly or indirectly, be concerned with, or take part in, the management of the insurer.
(3) Where any order is made in respect of a director or chief executive officer of an insurer under sub-section (1), he shall cease to be a director or, as the case may be, chief executive officer of the insurer and shall not, in any way, whether directly or indirectly, be concerned with, or take part it, the management of any insurer for such period not exceeding five years as may be specified in the order.
2[(4) If any person in respect of whom an order is made by the Authority under sub-section (1) or under the proviso to sub-section (2), contravenes the provisions of this section, he shall be liable to a penalty of one lakh rupees for each day during which such contravention continues or one crore rupees, whichever is less.]
(5) Where an order under subsection (1) has been made, the 1[Authority] may, by order in writing, appoint a suitable person in place of the director or chief executive officer who has been removed from his office under that sub-section, with effect from such date as may be specified in the order.
(6) Any person appointed as director or chief executive officer under this section shall--
(a) hold office during the pleasure of the 1[Authority] and subject thereto for a period not exceeding three years or such farther periods not exceeding three years at a time as the 1[Authority] may specify;
(b) not insure any obligation or liability by reason only of hi s being a director or chief executive officer or for anything done or omitted to be done in good faith in the execution of the duties of his office or in relation thereto.
(7) Notwithstanding anything contained in any law or in any contract, memorandum or articles of association, on the removal of a person from office under this section, that person shall not be entitled to claim any compensation for the loss or termination of office.]1. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000).
2. Subs. by Act 5 of 2015, s. 38, for sub-section (4) (w.e.f. 26-12-2014). | 3 | Power of Authority to remove managerial persons from office (7) Notwithstanding anything contained in any law or in any contract, memorandum or articles of association, on the removal of a person from office under this section, that person shall not be entitled to claim any compensation for the loss or termination of office.]1.Subs.by Act 41 of 1999, s.30 and the First Schedule, for "Controller" (w.e.f.19-4-2000).2.Subs.by Act 5 of 2015, s.38, for sub-section (4) (w.e.f.26-12-2014). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18157§ionno=34C&orderno=63 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 34C | Power of Authority to appoint additional directors | 34C. Power of 1[Authority] to appoint additional directors. -- 2 (1) If the Authority is of opinion that in the public interest or in the interest of an insurer, or his policyholders it is necessary so to do, it may, from time to time, by order in writing, appoint, in consultation with the Central Government with effect from such date as may be specified in the order, one or more persons to hold office as additional directors of the insurer:
Provided that the number of additional directors so appointed shall not, at any time, exceed five or one-third of the maximum strength fixed for the Board by the articles of association of the insurer, whichever is less.
(2) Any person appointed as additional director in pursuance of this section,--
(a) shall hold office during the pleasure of the 1[Authority], and subject thereto for a period not exceeding three years or such further periods not exceeding three years at a time as the 1[Authority] may specify;
(b) shall not incur any obligation or liability by reason only of his being a director or for anything done or omitted to be done in good faith in the execution of the duties of his office or in relation thereto; and
(c) shall not be required to hold qualification shares of the insurer.
(3) For the purpose of reckoning any proportion of the total number of directors of the insurer, any additional director appointed under this section shall not be taken into account.1. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000).
2. Subs. by Act 5 of 2015, s. 39, for sub-section (1) (w.e.f. 26-12-2014). | 0 | Power of Authority to appoint additional directors 34C.Power of 1[Authority] to appoint additional directors.-- 2 (1) If the Authority is of opinion that in the public interest or in the interest of an insurer, or his policyholders it is necessary so to do, it may, from time to time, by order in writing, appoint, in consultation with the Central Government with effect from such date as may be specified in the order, one or more persons to hold office as additional directors of the insurer:
Provided that the number of additional directors so appointed shall not, at any time, exceed five or one-third of the maximum strength fixed for the Board by the articles of association of the insurer, whichever is less.(2) Any person appointed as additional director in pursuance of this section,--
(a) shall hold office during the pleasure of the 1[Authority], and subject thereto for a period not exceeding three years or such further periods not exceeding three years at a time as the 1[Authority] may specify;
(b) shall not incur any obligation or liability by reason only of his being a director or for anything done or omitted to be done in good faith in the execution of the duties of his office or in relation thereto; and
(c) shall not be required to hold qualification shares of the insurer.(3) For the purpose of reckoning any proportion of the total number of directors of the insurer, any additional director appointed under this section shall not be taken into account.1.Subs.by Act 41 of 1999, s.30 and the First Schedule, for "Controller" (w.e.f.19-4-2000).2.Subs.by Act 5 of 2015, s.39, for sub-section (1) (w.e.f.26-12-2014). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18158§ionno=34D&orderno=64 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 34D | Sections 34B and 34C to override other laws | Any appointment or removal of a director or executive officer in pursuance of section 34B or section 34 C shall have effect notwithstanding anything the contrary contained in the Companies Act, 1956 (1 of 1956), or any other law for the time being in force or any contract or any other instrument. | 0 | Sections 34B and 34C to override other laws Any appointment or removal of a director or executive officer in pursuance of section 34B or section 34 C shall have effect notwithstanding anything the contrary contained in the Companies Act, 1956 (1 of 1956), or any other law for the time being in force or any contract or any other instrument. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18159§ionno=34E&orderno=65 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 34E | Further powers | The 142[Authority] may, -- (a) caution or prohibit insurers, generally or any insurer in particular against entering into any particular transaction or class of transactions, and generally give advice to any insurer;
(b) at any time, if it is satisfied that in the public interest or in the interests of the insurer or for preventing the affairs of the insurer being conducted in a manner detrimental to the interests of the insurer or hi s policy-holders, it is necessary so to do, by order in writing and on such terms and conditions as may be specified therein,--
(i) require the insurer to call a meeting of hi s directors for the purpose of considering any matter relating to or arising out of the affairs of the insurer;
(ii) depute one or more of his officers to watch the proceedings at any meeting of the Board of directors of the insurer or of any committee or of any other body constituted by it; require the insurer to give an opportunity to the officers so deputed to be heard at such meetings and also require such officers to send a report of such proceedings to the 1[Authority];
(iii) require the Board of directors of the insurer or any committee or any other body constituted by it to give in writing to any officer specified by the 2[Authority] in this behalf at hi s usual address all notices if, and other communications relating to, any meeting of the Board, committee or other body constituted by it;
(iv) appoint one or more of hi s officers to observe the manner in which the affairs of the insurer or of hi s offices or branches are being conducted and make a report thereon;
(v) require the insurer to make, within such time as may be specified in the order, such changes in the management as the 2[Authority] may consider necessary.]1. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000).
2. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000). | 0 | Further powers The 142[Authority] may, -- (a) caution or prohibit insurers, generally or any insurer in particular against entering into any particular transaction or class of transactions, and generally give advice to any insurer;
(b) at any time, if it is satisfied that in the public interest or in the interests of the insurer or for preventing the affairs of the insurer being conducted in a manner detrimental to the interests of the insurer or hi s policy-holders, it is necessary so to do, by order in writing and on such terms and conditions as may be specified therein,--
(i) require the insurer to call a meeting of hi s directors for the purpose of considering any matter relating to or arising out of the affairs of the insurer;
(ii) depute one or more of his officers to watch the proceedings at any meeting of the Board of directors of the insurer or of any committee or of any other body constituted by it; require the insurer to give an opportunity to the officers so deputed to be heard at such meetings and also require such officers to send a report of such proceedings to the 1[Authority];
(iii) require the Board of directors of the insurer or any committee or any other body constituted by it to give in writing to any officer specified by the 2[Authority] in this behalf at hi s usual address all notices if, and other communications relating to, any meeting of the Board, committee or other body constituted by it;
(iv) appoint one or more of hi s officers to observe the manner in which the affairs of the insurer or of hi s offices or branches are being conducted and make a report thereon;
(v) require the insurer to make, within such time as may be specified in the order, such changes in the management as the 2[Authority] may consider necessary.]1.Subs.by Act 41 of 1999, s.30 and the First Schedule, for "Controller" (w.e.f.19-4-2000).2.Subs.by Act 41 of 1999, s.30 and the First Schedule, for "Controller" (w.e.f.19-4-2000). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18160§ionno=34F&orderno=66 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 34F | Power of Authority to issue directions regarding re-insurance treaties, etc | 34F. Power of 1 [Authority] to issue directions regarding re-insurance treaties, etc. —--(1) Without prejudice to the generality of the powers conferred by sub-section (1) of section 34, the 1[Authority] may, if he is of opinion that the terms or conditions of any re-insurance treaty or other reinsurance contract entered into by an insurer are not favourable to the insurer or are detrimental to the public interest, he may, by order, require the insurer to make, at the time when the renewal of such treaty or contract becomes next due, such modifications in the terms and conditions of such treaty or contract as he may specify in the order or not to renew such treaty or contract, and, if the insurer fails to comply with such order, he shall be deemed to have failed to comply with the provisions of this Act.
(2) The 1[Authority] may, if he has reason to believe that an insurer is entering into or is likely to enter into re-insurance treaties or other re-insurance contracts which are not favourable to the insurer or are detrimental to the public interest, he may, by order, direct that the insurer shall not enter into such re-insurance treaty or other re-insurance contract unless a copy of such treaty or contract has been furnished to him in advance and the terms and conditions thereof have been approved by him and if the insurer fails to comply with such order he shall be deemed to have failed to comply with the requirements of this Act.]1. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000). | 0 | Power of Authority to issue directions regarding re-insurance treaties, etc 34F.Power of 1 [Authority] to issue directions regarding re-insurance treaties, etc.—--(1) Without prejudice to the generality of the powers conferred by sub-section (1) of section 34, the 1[Authority] may, if he is of opinion that the terms or conditions of any re-insurance treaty or other reinsurance contract entered into by an insurer are not favourable to the insurer or are detrimental to the public interest, he may, by order, require the insurer to make, at the time when the renewal of such treaty or contract becomes next due, such modifications in the terms and conditions of such treaty or contract as he may specify in the order or not to renew such treaty or contract, and, if the insurer fails to comply with such order, he shall be deemed to have failed to comply with the provisions of this Act.(2) The 1[Authority] may, if he has reason to believe that an insurer is entering into or is likely to enter into re-insurance treaties or other re-insurance contracts which are not favourable to the insurer or are detrimental to the public interest, he may, by order, direct that the insurer shall not enter into such re-insurance treaty or other re-insurance contract unless a copy of such treaty or contract has been furnished to him in advance and the terms and conditions thereof have been approved by him and if the insurer fails to comply with such order he shall be deemed to have failed to comply with the requirements of this Act.]1.Subs.by Act 41 of 1999, s.30 and the First Schedule, for "Controller" (w.e.f.19-4-2000). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18161§ionno=34G&orderno=67 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 34G | Omitted | [Power of Controller to order closure of foreign branches.] Omitted by the Insurance Laws (Amendment) Act, 2015 (5 of 2015), s. 40 (w.e.f. 26-12-2014)]. | 0 | Omitted [Power of Controller to order closure of foreign branches.] Omitted by the Insurance Laws (Amendment) Act, 2015 (5 of 2015), s.40 (w.e.f.26-12-2014)]. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18162§ionno=34H&orderno=68 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 34H | Search and seizure | (1) Where the 1[Chairperson of the Authority], in consequence of information in his possession, has reason to believe that --
(a) any person who has been required under sub-section (2) of section 33 to produce, or cause to be produced, any books, accounts or other documents in his custody or power has omitted or failed to produce, or cause to be produced, such books, accounts or other documents, or
(b) Any person to whom a requisition to produce any books, accounts or other documents as aforesaid has been or might be issued will not, or would not, produce or cause to be produced, any books, accounts or other documents which will be useful for, or relevant to, an investigation under sub-section (1) of section 33 or an inspection under sub-section (1A) of that section, or
(c) a contravention of any provision of this Act has been committed or is likely to be committed by an insurer, or
(d) any claim which is due to be settled by an insurer, has been or is likely to be rejected or settled at a figure higher than a reasonable amount, or
(e) any claim which is due to be settled by an insurer, has been or is likely to be rejected or settled at a figure lower than a reasonable amount, or
(f) any illegal rebate or commission has been paid or is likely to be paid by an insurer, or
(g) any books, accounts, receipts, vouchers, survey reports or other documents, belonging to an insurer are likely to be tampered with, falsified or manufactured,
he may authorise any subordinate officer of his, not lower in rank than 2[a Deputy Director or an equivalent officer] (hereafter referred to as the authorised officer) to --
(i) enter and search any building or place where he has reason to suspect that such books, accounts or other documents, or any books or papers relating to any claim, rebate or commission or any receipts, vouchers, reports or other documents are kept;
(ii) break open the lock of any door, box, locker, safe, almirah or other receptacle for exercising the powers conferred by clause (i) where the keys thereof are not available;
(iii) seize all or any such books, accounts or other documents, found as a result of such search;
(iv) place marks of identification on such books, accounts or other documents or make or cause to be made extracts or copies therefrom.
(2) The authorised officer may requisition the services of any police-officer or of any officer of the Central Government, or of both, to assist hi m for all or any of the purposes specified in sub-section (1) and it shall be the duty of every such officer to comply with such requisition.
(3) The authorised officer may, where it is not practicable to seize any such book, account or other document, specified in sub-section (1), serve an order on the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it except with the previous permission of such officer and such officer may take such steps as may be necessary for ensuring compliance with this sub-section.
(4) The authorised officer may, during the course of the search or seizure, examine on oath any person who is found to be in possession or control of any books, accounts or other documents, and any statement made by such person during such examination may thereafter be used in evidence in any proceeding under this Act.
(5) The books, accounts, papers, receipts, vouchers, reports, or other documents seized under sub-section (1) shall not be retained by the authorised officer for a period exceeding one hundred and eighty days from the date of the seizure unless the reasons for retaining the same recorded by hi m in writing and the approval of the 3[Chairperson of the Authority] for such retention is obtained:
Provided that the 3[Chairperson of the Authority] shall not authorise the retention of the books, accounts, papers, receipts, vouchers, reports, or other documents for a period exceeding thirty days after all the proceedings under this Act for which the books, accounts, papers, receipts, vouchers, reports, or other documents are relevant are completed.
(6 ) The person from whose custody and books, accounts, papers, receipts, vouchers, reports, or other documents are seized under sub-section (1) may make copies thereof, or take extracts therefrom, in the presence of the authorised officer or any other person empowered by hi m in this behalf at such place and time as the authorised officer may appoint in this behalf.
(7) If a person legally entitled to the books, accounts, papers, receipts, vouchers, reports or other documents seized under sub-section (1) objects for any reason to the approval given by the 4[Chairperson of the Authority] under sub-section (5), he may make an application to the 5[Securities Appellate Tribunal] stating therein the reason for such objection and requesting for the return of the books, accounts, papers, receipts, vouchers, reports or other documents.
(8) On receipt of the application under sub-section (7), the 5[Securities Appellate Tribunal] may, after giving the applicant an opportunity of being heard, pass such orders as it thinks fit.
(9) The provisions of the Code of Criminal Procedure, 1898 (5 of 1898) relating to searches and seizures shall apply, so far as may be, to every search and seizure made under sub-section (1).
(10) The Central Government 6[ may, by notification in the Official Gazette; make rules] in relation to any search or seizure under this section; in particular, and without prejudice to the generality of the foregoing power, such rules may provide for the procedure to be followed by the authorised officer, --
(i) for obtaining ingress into such building or place to be searched where free ingress thereto is not available;
(ii) for ensuring safe custody of any books, accounts, papers, receipts, vouchers, reports, or other documents seized under this section.]1. Subs. by s. 30 and the First Schedule, [Serial no. 22 (a)], ibid., for "Controller" (w.e.f. 19-4-2000).
2. Subs. by Act 5 of 2015, s. 41, for "an officer authorised by the Authority" (w.e.f. 26-12-2014).
3. Subs. by Act 62 of 1968, s. 33 and the First Schedule [Serial no. 22 (b)], for "Controller" (w.e.f. 19-4-2000).
4. Subs. by Act 41 of 1999, s. 30 and the First Schedule for [Serial no. 22 (b)] "Controller" (w.e.f. 19-4-2000).
5. Subs. by Act 5 of 2015, s. 41, for "Central Government" (w.e.f. 26-12-2014).
6. Subs. by Act 20 of 1983, s. 2 and the Schedule, for "may make rules" (w.e.f. 15-3-1984). | 0 | Search and seizure (1) Where the 1[Chairperson of the Authority], in consequence of information in his possession, has reason to believe that --
(a) any person who has been required under sub-section (2) of section 33 to produce, or cause to be produced, any books, accounts or other documents in his custody or power has omitted or failed to produce, or cause to be produced, such books, accounts or other documents, or
(b) Any person to whom a requisition to produce any books, accounts or other documents as aforesaid has been or might be issued will not, or would not, produce or cause to be produced, any books, accounts or other documents which will be useful for, or relevant to, an investigation under sub-section (1) of section 33 or an inspection under sub-section (1A) of that section, or
(c) a contravention of any provision of this Act has been committed or is likely to be committed by an insurer, or
(d) any claim which is due to be settled by an insurer, has been or is likely to be rejected or settled at a figure higher than a reasonable amount, or
(e) any claim which is due to be settled by an insurer, has been or is likely to be rejected or settled at a figure lower than a reasonable amount, or
(f) any illegal rebate or commission has been paid or is likely to be paid by an insurer, or
(g) any books, accounts, receipts, vouchers, survey reports or other documents, belonging to an insurer are likely to be tampered with, falsified or manufactured,
he may authorise any subordinate officer of his, not lower in rank than 2[a Deputy Director or an equivalent officer] (hereafter referred to as the authorised officer) to --
(i) enter and search any building or place where he has reason to suspect that such books, accounts or other documents, or any books or papers relating to any claim, rebate or commission or any receipts, vouchers, reports or other documents are kept;
(ii) break open the lock of any door, box, locker, safe, almirah or other receptacle for exercising the powers conferred by clause (i) where the keys thereof are not available;
(iii) seize all or any such books, accounts or other documents, found as a result of such search;
(iv) place marks of identification on such books, accounts or other documents or make or cause to be made extracts or copies therefrom.(2) The authorised officer may requisition the services of any police-officer or of any officer of the Central Government, or of both, to assist hi m for all or any of the purposes specified in sub-section (1) and it shall be the duty of every such officer to comply with such requisition. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18162§ionno=34H&orderno=68 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 34H | Search and seizure | (1) Where the 1[Chairperson of the Authority], in consequence of information in his possession, has reason to believe that --
(a) any person who has been required under sub-section (2) of section 33 to produce, or cause to be produced, any books, accounts or other documents in his custody or power has omitted or failed to produce, or cause to be produced, such books, accounts or other documents, or
(b) Any person to whom a requisition to produce any books, accounts or other documents as aforesaid has been or might be issued will not, or would not, produce or cause to be produced, any books, accounts or other documents which will be useful for, or relevant to, an investigation under sub-section (1) of section 33 or an inspection under sub-section (1A) of that section, or
(c) a contravention of any provision of this Act has been committed or is likely to be committed by an insurer, or
(d) any claim which is due to be settled by an insurer, has been or is likely to be rejected or settled at a figure higher than a reasonable amount, or
(e) any claim which is due to be settled by an insurer, has been or is likely to be rejected or settled at a figure lower than a reasonable amount, or
(f) any illegal rebate or commission has been paid or is likely to be paid by an insurer, or
(g) any books, accounts, receipts, vouchers, survey reports or other documents, belonging to an insurer are likely to be tampered with, falsified or manufactured,
he may authorise any subordinate officer of his, not lower in rank than 2[a Deputy Director or an equivalent officer] (hereafter referred to as the authorised officer) to --
(i) enter and search any building or place where he has reason to suspect that such books, accounts or other documents, or any books or papers relating to any claim, rebate or commission or any receipts, vouchers, reports or other documents are kept;
(ii) break open the lock of any door, box, locker, safe, almirah or other receptacle for exercising the powers conferred by clause (i) where the keys thereof are not available;
(iii) seize all or any such books, accounts or other documents, found as a result of such search;
(iv) place marks of identification on such books, accounts or other documents or make or cause to be made extracts or copies therefrom.
(2) The authorised officer may requisition the services of any police-officer or of any officer of the Central Government, or of both, to assist hi m for all or any of the purposes specified in sub-section (1) and it shall be the duty of every such officer to comply with such requisition.
(3) The authorised officer may, where it is not practicable to seize any such book, account or other document, specified in sub-section (1), serve an order on the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it except with the previous permission of such officer and such officer may take such steps as may be necessary for ensuring compliance with this sub-section.
(4) The authorised officer may, during the course of the search or seizure, examine on oath any person who is found to be in possession or control of any books, accounts or other documents, and any statement made by such person during such examination may thereafter be used in evidence in any proceeding under this Act.
(5) The books, accounts, papers, receipts, vouchers, reports, or other documents seized under sub-section (1) shall not be retained by the authorised officer for a period exceeding one hundred and eighty days from the date of the seizure unless the reasons for retaining the same recorded by hi m in writing and the approval of the 3[Chairperson of the Authority] for such retention is obtained:
Provided that the 3[Chairperson of the Authority] shall not authorise the retention of the books, accounts, papers, receipts, vouchers, reports, or other documents for a period exceeding thirty days after all the proceedings under this Act for which the books, accounts, papers, receipts, vouchers, reports, or other documents are relevant are completed.
(6 ) The person from whose custody and books, accounts, papers, receipts, vouchers, reports, or other documents are seized under sub-section (1) may make copies thereof, or take extracts therefrom, in the presence of the authorised officer or any other person empowered by hi m in this behalf at such place and time as the authorised officer may appoint in this behalf.
(7) If a person legally entitled to the books, accounts, papers, receipts, vouchers, reports or other documents seized under sub-section (1) objects for any reason to the approval given by the 4[Chairperson of the Authority] under sub-section (5), he may make an application to the 5[Securities Appellate Tribunal] stating therein the reason for such objection and requesting for the return of the books, accounts, papers, receipts, vouchers, reports or other documents.
(8) On receipt of the application under sub-section (7), the 5[Securities Appellate Tribunal] may, after giving the applicant an opportunity of being heard, pass such orders as it thinks fit.
(9) The provisions of the Code of Criminal Procedure, 1898 (5 of 1898) relating to searches and seizures shall apply, so far as may be, to every search and seizure made under sub-section (1).
(10) The Central Government 6[ may, by notification in the Official Gazette; make rules] in relation to any search or seizure under this section; in particular, and without prejudice to the generality of the foregoing power, such rules may provide for the procedure to be followed by the authorised officer, --
(i) for obtaining ingress into such building or place to be searched where free ingress thereto is not available;
(ii) for ensuring safe custody of any books, accounts, papers, receipts, vouchers, reports, or other documents seized under this section.]1. Subs. by s. 30 and the First Schedule, [Serial no. 22 (a)], ibid., for "Controller" (w.e.f. 19-4-2000).
2. Subs. by Act 5 of 2015, s. 41, for "an officer authorised by the Authority" (w.e.f. 26-12-2014).
3. Subs. by Act 62 of 1968, s. 33 and the First Schedule [Serial no. 22 (b)], for "Controller" (w.e.f. 19-4-2000).
4. Subs. by Act 41 of 1999, s. 30 and the First Schedule for [Serial no. 22 (b)] "Controller" (w.e.f. 19-4-2000).
5. Subs. by Act 5 of 2015, s. 41, for "Central Government" (w.e.f. 26-12-2014).
6. Subs. by Act 20 of 1983, s. 2 and the Schedule, for "may make rules" (w.e.f. 15-3-1984). | 1 | Search and seizure (3) The authorised officer may, where it is not practicable to seize any such book, account or other document, specified in sub-section (1), serve an order on the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it except with the previous permission of such officer and such officer may take such steps as may be necessary for ensuring compliance with this sub-section. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18162§ionno=34H&orderno=68 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 34H | Search and seizure | (1) Where the 1[Chairperson of the Authority], in consequence of information in his possession, has reason to believe that --
(a) any person who has been required under sub-section (2) of section 33 to produce, or cause to be produced, any books, accounts or other documents in his custody or power has omitted or failed to produce, or cause to be produced, such books, accounts or other documents, or
(b) Any person to whom a requisition to produce any books, accounts or other documents as aforesaid has been or might be issued will not, or would not, produce or cause to be produced, any books, accounts or other documents which will be useful for, or relevant to, an investigation under sub-section (1) of section 33 or an inspection under sub-section (1A) of that section, or
(c) a contravention of any provision of this Act has been committed or is likely to be committed by an insurer, or
(d) any claim which is due to be settled by an insurer, has been or is likely to be rejected or settled at a figure higher than a reasonable amount, or
(e) any claim which is due to be settled by an insurer, has been or is likely to be rejected or settled at a figure lower than a reasonable amount, or
(f) any illegal rebate or commission has been paid or is likely to be paid by an insurer, or
(g) any books, accounts, receipts, vouchers, survey reports or other documents, belonging to an insurer are likely to be tampered with, falsified or manufactured,
he may authorise any subordinate officer of his, not lower in rank than 2[a Deputy Director or an equivalent officer] (hereafter referred to as the authorised officer) to --
(i) enter and search any building or place where he has reason to suspect that such books, accounts or other documents, or any books or papers relating to any claim, rebate or commission or any receipts, vouchers, reports or other documents are kept;
(ii) break open the lock of any door, box, locker, safe, almirah or other receptacle for exercising the powers conferred by clause (i) where the keys thereof are not available;
(iii) seize all or any such books, accounts or other documents, found as a result of such search;
(iv) place marks of identification on such books, accounts or other documents or make or cause to be made extracts or copies therefrom.
(2) The authorised officer may requisition the services of any police-officer or of any officer of the Central Government, or of both, to assist hi m for all or any of the purposes specified in sub-section (1) and it shall be the duty of every such officer to comply with such requisition.
(3) The authorised officer may, where it is not practicable to seize any such book, account or other document, specified in sub-section (1), serve an order on the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it except with the previous permission of such officer and such officer may take such steps as may be necessary for ensuring compliance with this sub-section.
(4) The authorised officer may, during the course of the search or seizure, examine on oath any person who is found to be in possession or control of any books, accounts or other documents, and any statement made by such person during such examination may thereafter be used in evidence in any proceeding under this Act.
(5) The books, accounts, papers, receipts, vouchers, reports, or other documents seized under sub-section (1) shall not be retained by the authorised officer for a period exceeding one hundred and eighty days from the date of the seizure unless the reasons for retaining the same recorded by hi m in writing and the approval of the 3[Chairperson of the Authority] for such retention is obtained:
Provided that the 3[Chairperson of the Authority] shall not authorise the retention of the books, accounts, papers, receipts, vouchers, reports, or other documents for a period exceeding thirty days after all the proceedings under this Act for which the books, accounts, papers, receipts, vouchers, reports, or other documents are relevant are completed.
(6 ) The person from whose custody and books, accounts, papers, receipts, vouchers, reports, or other documents are seized under sub-section (1) may make copies thereof, or take extracts therefrom, in the presence of the authorised officer or any other person empowered by hi m in this behalf at such place and time as the authorised officer may appoint in this behalf.
(7) If a person legally entitled to the books, accounts, papers, receipts, vouchers, reports or other documents seized under sub-section (1) objects for any reason to the approval given by the 4[Chairperson of the Authority] under sub-section (5), he may make an application to the 5[Securities Appellate Tribunal] stating therein the reason for such objection and requesting for the return of the books, accounts, papers, receipts, vouchers, reports or other documents.
(8) On receipt of the application under sub-section (7), the 5[Securities Appellate Tribunal] may, after giving the applicant an opportunity of being heard, pass such orders as it thinks fit.
(9) The provisions of the Code of Criminal Procedure, 1898 (5 of 1898) relating to searches and seizures shall apply, so far as may be, to every search and seizure made under sub-section (1).
(10) The Central Government 6[ may, by notification in the Official Gazette; make rules] in relation to any search or seizure under this section; in particular, and without prejudice to the generality of the foregoing power, such rules may provide for the procedure to be followed by the authorised officer, --
(i) for obtaining ingress into such building or place to be searched where free ingress thereto is not available;
(ii) for ensuring safe custody of any books, accounts, papers, receipts, vouchers, reports, or other documents seized under this section.]1. Subs. by s. 30 and the First Schedule, [Serial no. 22 (a)], ibid., for "Controller" (w.e.f. 19-4-2000).
2. Subs. by Act 5 of 2015, s. 41, for "an officer authorised by the Authority" (w.e.f. 26-12-2014).
3. Subs. by Act 62 of 1968, s. 33 and the First Schedule [Serial no. 22 (b)], for "Controller" (w.e.f. 19-4-2000).
4. Subs. by Act 41 of 1999, s. 30 and the First Schedule for [Serial no. 22 (b)] "Controller" (w.e.f. 19-4-2000).
5. Subs. by Act 5 of 2015, s. 41, for "Central Government" (w.e.f. 26-12-2014).
6. Subs. by Act 20 of 1983, s. 2 and the Schedule, for "may make rules" (w.e.f. 15-3-1984). | 2 | Search and seizure |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18162§ionno=34H&orderno=68 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 34H | Search and seizure | (1) Where the 1[Chairperson of the Authority], in consequence of information in his possession, has reason to believe that --
(a) any person who has been required under sub-section (2) of section 33 to produce, or cause to be produced, any books, accounts or other documents in his custody or power has omitted or failed to produce, or cause to be produced, such books, accounts or other documents, or
(b) Any person to whom a requisition to produce any books, accounts or other documents as aforesaid has been or might be issued will not, or would not, produce or cause to be produced, any books, accounts or other documents which will be useful for, or relevant to, an investigation under sub-section (1) of section 33 or an inspection under sub-section (1A) of that section, or
(c) a contravention of any provision of this Act has been committed or is likely to be committed by an insurer, or
(d) any claim which is due to be settled by an insurer, has been or is likely to be rejected or settled at a figure higher than a reasonable amount, or
(e) any claim which is due to be settled by an insurer, has been or is likely to be rejected or settled at a figure lower than a reasonable amount, or
(f) any illegal rebate or commission has been paid or is likely to be paid by an insurer, or
(g) any books, accounts, receipts, vouchers, survey reports or other documents, belonging to an insurer are likely to be tampered with, falsified or manufactured,
he may authorise any subordinate officer of his, not lower in rank than 2[a Deputy Director or an equivalent officer] (hereafter referred to as the authorised officer) to --
(i) enter and search any building or place where he has reason to suspect that such books, accounts or other documents, or any books or papers relating to any claim, rebate or commission or any receipts, vouchers, reports or other documents are kept;
(ii) break open the lock of any door, box, locker, safe, almirah or other receptacle for exercising the powers conferred by clause (i) where the keys thereof are not available;
(iii) seize all or any such books, accounts or other documents, found as a result of such search;
(iv) place marks of identification on such books, accounts or other documents or make or cause to be made extracts or copies therefrom.
(2) The authorised officer may requisition the services of any police-officer or of any officer of the Central Government, or of both, to assist hi m for all or any of the purposes specified in sub-section (1) and it shall be the duty of every such officer to comply with such requisition.
(3) The authorised officer may, where it is not practicable to seize any such book, account or other document, specified in sub-section (1), serve an order on the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it except with the previous permission of such officer and such officer may take such steps as may be necessary for ensuring compliance with this sub-section.
(4) The authorised officer may, during the course of the search or seizure, examine on oath any person who is found to be in possession or control of any books, accounts or other documents, and any statement made by such person during such examination may thereafter be used in evidence in any proceeding under this Act.
(5) The books, accounts, papers, receipts, vouchers, reports, or other documents seized under sub-section (1) shall not be retained by the authorised officer for a period exceeding one hundred and eighty days from the date of the seizure unless the reasons for retaining the same recorded by hi m in writing and the approval of the 3[Chairperson of the Authority] for such retention is obtained:
Provided that the 3[Chairperson of the Authority] shall not authorise the retention of the books, accounts, papers, receipts, vouchers, reports, or other documents for a period exceeding thirty days after all the proceedings under this Act for which the books, accounts, papers, receipts, vouchers, reports, or other documents are relevant are completed.
(6 ) The person from whose custody and books, accounts, papers, receipts, vouchers, reports, or other documents are seized under sub-section (1) may make copies thereof, or take extracts therefrom, in the presence of the authorised officer or any other person empowered by hi m in this behalf at such place and time as the authorised officer may appoint in this behalf.
(7) If a person legally entitled to the books, accounts, papers, receipts, vouchers, reports or other documents seized under sub-section (1) objects for any reason to the approval given by the 4[Chairperson of the Authority] under sub-section (5), he may make an application to the 5[Securities Appellate Tribunal] stating therein the reason for such objection and requesting for the return of the books, accounts, papers, receipts, vouchers, reports or other documents.
(8) On receipt of the application under sub-section (7), the 5[Securities Appellate Tribunal] may, after giving the applicant an opportunity of being heard, pass such orders as it thinks fit.
(9) The provisions of the Code of Criminal Procedure, 1898 (5 of 1898) relating to searches and seizures shall apply, so far as may be, to every search and seizure made under sub-section (1).
(10) The Central Government 6[ may, by notification in the Official Gazette; make rules] in relation to any search or seizure under this section; in particular, and without prejudice to the generality of the foregoing power, such rules may provide for the procedure to be followed by the authorised officer, --
(i) for obtaining ingress into such building or place to be searched where free ingress thereto is not available;
(ii) for ensuring safe custody of any books, accounts, papers, receipts, vouchers, reports, or other documents seized under this section.]1. Subs. by s. 30 and the First Schedule, [Serial no. 22 (a)], ibid., for "Controller" (w.e.f. 19-4-2000).
2. Subs. by Act 5 of 2015, s. 41, for "an officer authorised by the Authority" (w.e.f. 26-12-2014).
3. Subs. by Act 62 of 1968, s. 33 and the First Schedule [Serial no. 22 (b)], for "Controller" (w.e.f. 19-4-2000).
4. Subs. by Act 41 of 1999, s. 30 and the First Schedule for [Serial no. 22 (b)] "Controller" (w.e.f. 19-4-2000).
5. Subs. by Act 5 of 2015, s. 41, for "Central Government" (w.e.f. 26-12-2014).
6. Subs. by Act 20 of 1983, s. 2 and the Schedule, for "may make rules" (w.e.f. 15-3-1984). | 3 | Search and seizure |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18162§ionno=34H&orderno=68 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 34H | Search and seizure | (1) Where the 1[Chairperson of the Authority], in consequence of information in his possession, has reason to believe that --
(a) any person who has been required under sub-section (2) of section 33 to produce, or cause to be produced, any books, accounts or other documents in his custody or power has omitted or failed to produce, or cause to be produced, such books, accounts or other documents, or
(b) Any person to whom a requisition to produce any books, accounts or other documents as aforesaid has been or might be issued will not, or would not, produce or cause to be produced, any books, accounts or other documents which will be useful for, or relevant to, an investigation under sub-section (1) of section 33 or an inspection under sub-section (1A) of that section, or
(c) a contravention of any provision of this Act has been committed or is likely to be committed by an insurer, or
(d) any claim which is due to be settled by an insurer, has been or is likely to be rejected or settled at a figure higher than a reasonable amount, or
(e) any claim which is due to be settled by an insurer, has been or is likely to be rejected or settled at a figure lower than a reasonable amount, or
(f) any illegal rebate or commission has been paid or is likely to be paid by an insurer, or
(g) any books, accounts, receipts, vouchers, survey reports or other documents, belonging to an insurer are likely to be tampered with, falsified or manufactured,
he may authorise any subordinate officer of his, not lower in rank than 2[a Deputy Director or an equivalent officer] (hereafter referred to as the authorised officer) to --
(i) enter and search any building or place where he has reason to suspect that such books, accounts or other documents, or any books or papers relating to any claim, rebate or commission or any receipts, vouchers, reports or other documents are kept;
(ii) break open the lock of any door, box, locker, safe, almirah or other receptacle for exercising the powers conferred by clause (i) where the keys thereof are not available;
(iii) seize all or any such books, accounts or other documents, found as a result of such search;
(iv) place marks of identification on such books, accounts or other documents or make or cause to be made extracts or copies therefrom.
(2) The authorised officer may requisition the services of any police-officer or of any officer of the Central Government, or of both, to assist hi m for all or any of the purposes specified in sub-section (1) and it shall be the duty of every such officer to comply with such requisition.
(3) The authorised officer may, where it is not practicable to seize any such book, account or other document, specified in sub-section (1), serve an order on the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it except with the previous permission of such officer and such officer may take such steps as may be necessary for ensuring compliance with this sub-section.
(4) The authorised officer may, during the course of the search or seizure, examine on oath any person who is found to be in possession or control of any books, accounts or other documents, and any statement made by such person during such examination may thereafter be used in evidence in any proceeding under this Act.
(5) The books, accounts, papers, receipts, vouchers, reports, or other documents seized under sub-section (1) shall not be retained by the authorised officer for a period exceeding one hundred and eighty days from the date of the seizure unless the reasons for retaining the same recorded by hi m in writing and the approval of the 3[Chairperson of the Authority] for such retention is obtained:
Provided that the 3[Chairperson of the Authority] shall not authorise the retention of the books, accounts, papers, receipts, vouchers, reports, or other documents for a period exceeding thirty days after all the proceedings under this Act for which the books, accounts, papers, receipts, vouchers, reports, or other documents are relevant are completed.
(6 ) The person from whose custody and books, accounts, papers, receipts, vouchers, reports, or other documents are seized under sub-section (1) may make copies thereof, or take extracts therefrom, in the presence of the authorised officer or any other person empowered by hi m in this behalf at such place and time as the authorised officer may appoint in this behalf.
(7) If a person legally entitled to the books, accounts, papers, receipts, vouchers, reports or other documents seized under sub-section (1) objects for any reason to the approval given by the 4[Chairperson of the Authority] under sub-section (5), he may make an application to the 5[Securities Appellate Tribunal] stating therein the reason for such objection and requesting for the return of the books, accounts, papers, receipts, vouchers, reports or other documents.
(8) On receipt of the application under sub-section (7), the 5[Securities Appellate Tribunal] may, after giving the applicant an opportunity of being heard, pass such orders as it thinks fit.
(9) The provisions of the Code of Criminal Procedure, 1898 (5 of 1898) relating to searches and seizures shall apply, so far as may be, to every search and seizure made under sub-section (1).
(10) The Central Government 6[ may, by notification in the Official Gazette; make rules] in relation to any search or seizure under this section; in particular, and without prejudice to the generality of the foregoing power, such rules may provide for the procedure to be followed by the authorised officer, --
(i) for obtaining ingress into such building or place to be searched where free ingress thereto is not available;
(ii) for ensuring safe custody of any books, accounts, papers, receipts, vouchers, reports, or other documents seized under this section.]1. Subs. by s. 30 and the First Schedule, [Serial no. 22 (a)], ibid., for "Controller" (w.e.f. 19-4-2000).
2. Subs. by Act 5 of 2015, s. 41, for "an officer authorised by the Authority" (w.e.f. 26-12-2014).
3. Subs. by Act 62 of 1968, s. 33 and the First Schedule [Serial no. 22 (b)], for "Controller" (w.e.f. 19-4-2000).
4. Subs. by Act 41 of 1999, s. 30 and the First Schedule for [Serial no. 22 (b)] "Controller" (w.e.f. 19-4-2000).
5. Subs. by Act 5 of 2015, s. 41, for "Central Government" (w.e.f. 26-12-2014).
6. Subs. by Act 20 of 1983, s. 2 and the Schedule, for "may make rules" (w.e.f. 15-3-1984). | 4 | Search and seizure (4) The authorised officer may, during the course of the search or seizure, examine on oath any person who is found to be in possession or control of any books, accounts or other documents, and any statement made by such person during such examination may thereafter be used in evidence in any proceeding under this Act.(5) The books, accounts, papers, receipts, vouchers, reports, or other documents seized under sub-section (1) shall not be retained by the authorised officer for a period exceeding one hundred and eighty days from the date of the seizure unless the reasons for retaining the same recorded by hi m in writing and the approval of the 3[Chairperson of the Authority] for such retention is obtained:
Provided that the 3[Chairperson of the Authority] shall not authorise the retention of the books, accounts, papers, receipts, vouchers, reports, or other documents for a period exceeding thirty days after all the proceedings under this Act for which the books, accounts, papers, receipts, vouchers, reports, or other documents are relevant are completed.(6 ) The person from whose custody and books, accounts, papers, receipts, vouchers, reports, or other documents are seized under sub-section (1) may make copies thereof, or take extracts therefrom, in the presence of the authorised officer or any other person empowered by hi m in this behalf at such place and time as the authorised officer may appoint in this behalf.(7) If a person legally entitled to the books, accounts, papers, receipts, vouchers, reports or other documents seized under sub-section (1) objects for any reason to the approval given by the 4[Chairperson of the Authority] under sub-section (5), he may make an application to the 5[Securities Appellate Tribunal] stating therein the reason for such objection and requesting for the return of the books, accounts, papers, receipts, vouchers, reports or other documents.(8) On receipt of the application under sub-section (7), the 5[Securities Appellate Tribunal] may, after giving the applicant an opportunity of being heard, pass such orders as it thinks fit.(9) The provisions of the Code of Criminal Procedure, 1898 (5 of 1898) relating to searches and seizures shall apply, so far as may be, to every search and seizure made under sub-section (1).(10) The Central Government 6[ may, by notification in the Official Gazette; make rules] in relation to any search or seizure under this section; in particular, and without prejudice to the generality of the foregoing power, such rules may provide for the procedure to be followed by the authorised officer, --
(i) for obtaining ingress into such building or place to be searched where free ingress thereto is not available;
(ii) for ensuring safe custody of any books, accounts, papers, receipts, vouchers, reports, or other documents seized under this section.]1.Subs.by s.30 and the First Schedule, [Serial no.22 (a)], ibid., for "Controller" (w.e.f.19-4-2000).2.Subs.by Act 5 of 2015, s. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18162§ionno=34H&orderno=68 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 34H | Search and seizure | (1) Where the 1[Chairperson of the Authority], in consequence of information in his possession, has reason to believe that --
(a) any person who has been required under sub-section (2) of section 33 to produce, or cause to be produced, any books, accounts or other documents in his custody or power has omitted or failed to produce, or cause to be produced, such books, accounts or other documents, or
(b) Any person to whom a requisition to produce any books, accounts or other documents as aforesaid has been or might be issued will not, or would not, produce or cause to be produced, any books, accounts or other documents which will be useful for, or relevant to, an investigation under sub-section (1) of section 33 or an inspection under sub-section (1A) of that section, or
(c) a contravention of any provision of this Act has been committed or is likely to be committed by an insurer, or
(d) any claim which is due to be settled by an insurer, has been or is likely to be rejected or settled at a figure higher than a reasonable amount, or
(e) any claim which is due to be settled by an insurer, has been or is likely to be rejected or settled at a figure lower than a reasonable amount, or
(f) any illegal rebate or commission has been paid or is likely to be paid by an insurer, or
(g) any books, accounts, receipts, vouchers, survey reports or other documents, belonging to an insurer are likely to be tampered with, falsified or manufactured,
he may authorise any subordinate officer of his, not lower in rank than 2[a Deputy Director or an equivalent officer] (hereafter referred to as the authorised officer) to --
(i) enter and search any building or place where he has reason to suspect that such books, accounts or other documents, or any books or papers relating to any claim, rebate or commission or any receipts, vouchers, reports or other documents are kept;
(ii) break open the lock of any door, box, locker, safe, almirah or other receptacle for exercising the powers conferred by clause (i) where the keys thereof are not available;
(iii) seize all or any such books, accounts or other documents, found as a result of such search;
(iv) place marks of identification on such books, accounts or other documents or make or cause to be made extracts or copies therefrom.
(2) The authorised officer may requisition the services of any police-officer or of any officer of the Central Government, or of both, to assist hi m for all or any of the purposes specified in sub-section (1) and it shall be the duty of every such officer to comply with such requisition.
(3) The authorised officer may, where it is not practicable to seize any such book, account or other document, specified in sub-section (1), serve an order on the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it except with the previous permission of such officer and such officer may take such steps as may be necessary for ensuring compliance with this sub-section.
(4) The authorised officer may, during the course of the search or seizure, examine on oath any person who is found to be in possession or control of any books, accounts or other documents, and any statement made by such person during such examination may thereafter be used in evidence in any proceeding under this Act.
(5) The books, accounts, papers, receipts, vouchers, reports, or other documents seized under sub-section (1) shall not be retained by the authorised officer for a period exceeding one hundred and eighty days from the date of the seizure unless the reasons for retaining the same recorded by hi m in writing and the approval of the 3[Chairperson of the Authority] for such retention is obtained:
Provided that the 3[Chairperson of the Authority] shall not authorise the retention of the books, accounts, papers, receipts, vouchers, reports, or other documents for a period exceeding thirty days after all the proceedings under this Act for which the books, accounts, papers, receipts, vouchers, reports, or other documents are relevant are completed.
(6 ) The person from whose custody and books, accounts, papers, receipts, vouchers, reports, or other documents are seized under sub-section (1) may make copies thereof, or take extracts therefrom, in the presence of the authorised officer or any other person empowered by hi m in this behalf at such place and time as the authorised officer may appoint in this behalf.
(7) If a person legally entitled to the books, accounts, papers, receipts, vouchers, reports or other documents seized under sub-section (1) objects for any reason to the approval given by the 4[Chairperson of the Authority] under sub-section (5), he may make an application to the 5[Securities Appellate Tribunal] stating therein the reason for such objection and requesting for the return of the books, accounts, papers, receipts, vouchers, reports or other documents.
(8) On receipt of the application under sub-section (7), the 5[Securities Appellate Tribunal] may, after giving the applicant an opportunity of being heard, pass such orders as it thinks fit.
(9) The provisions of the Code of Criminal Procedure, 1898 (5 of 1898) relating to searches and seizures shall apply, so far as may be, to every search and seizure made under sub-section (1).
(10) The Central Government 6[ may, by notification in the Official Gazette; make rules] in relation to any search or seizure under this section; in particular, and without prejudice to the generality of the foregoing power, such rules may provide for the procedure to be followed by the authorised officer, --
(i) for obtaining ingress into such building or place to be searched where free ingress thereto is not available;
(ii) for ensuring safe custody of any books, accounts, papers, receipts, vouchers, reports, or other documents seized under this section.]1. Subs. by s. 30 and the First Schedule, [Serial no. 22 (a)], ibid., for "Controller" (w.e.f. 19-4-2000).
2. Subs. by Act 5 of 2015, s. 41, for "an officer authorised by the Authority" (w.e.f. 26-12-2014).
3. Subs. by Act 62 of 1968, s. 33 and the First Schedule [Serial no. 22 (b)], for "Controller" (w.e.f. 19-4-2000).
4. Subs. by Act 41 of 1999, s. 30 and the First Schedule for [Serial no. 22 (b)] "Controller" (w.e.f. 19-4-2000).
5. Subs. by Act 5 of 2015, s. 41, for "Central Government" (w.e.f. 26-12-2014).
6. Subs. by Act 20 of 1983, s. 2 and the Schedule, for "may make rules" (w.e.f. 15-3-1984). | 5 | Search and seizure 41, for "an officer authorised by the Authority" (w. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18162§ionno=34H&orderno=68 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 34H | Search and seizure | (1) Where the 1[Chairperson of the Authority], in consequence of information in his possession, has reason to believe that --
(a) any person who has been required under sub-section (2) of section 33 to produce, or cause to be produced, any books, accounts or other documents in his custody or power has omitted or failed to produce, or cause to be produced, such books, accounts or other documents, or
(b) Any person to whom a requisition to produce any books, accounts or other documents as aforesaid has been or might be issued will not, or would not, produce or cause to be produced, any books, accounts or other documents which will be useful for, or relevant to, an investigation under sub-section (1) of section 33 or an inspection under sub-section (1A) of that section, or
(c) a contravention of any provision of this Act has been committed or is likely to be committed by an insurer, or
(d) any claim which is due to be settled by an insurer, has been or is likely to be rejected or settled at a figure higher than a reasonable amount, or
(e) any claim which is due to be settled by an insurer, has been or is likely to be rejected or settled at a figure lower than a reasonable amount, or
(f) any illegal rebate or commission has been paid or is likely to be paid by an insurer, or
(g) any books, accounts, receipts, vouchers, survey reports or other documents, belonging to an insurer are likely to be tampered with, falsified or manufactured,
he may authorise any subordinate officer of his, not lower in rank than 2[a Deputy Director or an equivalent officer] (hereafter referred to as the authorised officer) to --
(i) enter and search any building or place where he has reason to suspect that such books, accounts or other documents, or any books or papers relating to any claim, rebate or commission or any receipts, vouchers, reports or other documents are kept;
(ii) break open the lock of any door, box, locker, safe, almirah or other receptacle for exercising the powers conferred by clause (i) where the keys thereof are not available;
(iii) seize all or any such books, accounts or other documents, found as a result of such search;
(iv) place marks of identification on such books, accounts or other documents or make or cause to be made extracts or copies therefrom.
(2) The authorised officer may requisition the services of any police-officer or of any officer of the Central Government, or of both, to assist hi m for all or any of the purposes specified in sub-section (1) and it shall be the duty of every such officer to comply with such requisition.
(3) The authorised officer may, where it is not practicable to seize any such book, account or other document, specified in sub-section (1), serve an order on the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it except with the previous permission of such officer and such officer may take such steps as may be necessary for ensuring compliance with this sub-section.
(4) The authorised officer may, during the course of the search or seizure, examine on oath any person who is found to be in possession or control of any books, accounts or other documents, and any statement made by such person during such examination may thereafter be used in evidence in any proceeding under this Act.
(5) The books, accounts, papers, receipts, vouchers, reports, or other documents seized under sub-section (1) shall not be retained by the authorised officer for a period exceeding one hundred and eighty days from the date of the seizure unless the reasons for retaining the same recorded by hi m in writing and the approval of the 3[Chairperson of the Authority] for such retention is obtained:
Provided that the 3[Chairperson of the Authority] shall not authorise the retention of the books, accounts, papers, receipts, vouchers, reports, or other documents for a period exceeding thirty days after all the proceedings under this Act for which the books, accounts, papers, receipts, vouchers, reports, or other documents are relevant are completed.
(6 ) The person from whose custody and books, accounts, papers, receipts, vouchers, reports, or other documents are seized under sub-section (1) may make copies thereof, or take extracts therefrom, in the presence of the authorised officer or any other person empowered by hi m in this behalf at such place and time as the authorised officer may appoint in this behalf.
(7) If a person legally entitled to the books, accounts, papers, receipts, vouchers, reports or other documents seized under sub-section (1) objects for any reason to the approval given by the 4[Chairperson of the Authority] under sub-section (5), he may make an application to the 5[Securities Appellate Tribunal] stating therein the reason for such objection and requesting for the return of the books, accounts, papers, receipts, vouchers, reports or other documents.
(8) On receipt of the application under sub-section (7), the 5[Securities Appellate Tribunal] may, after giving the applicant an opportunity of being heard, pass such orders as it thinks fit.
(9) The provisions of the Code of Criminal Procedure, 1898 (5 of 1898) relating to searches and seizures shall apply, so far as may be, to every search and seizure made under sub-section (1).
(10) The Central Government 6[ may, by notification in the Official Gazette; make rules] in relation to any search or seizure under this section; in particular, and without prejudice to the generality of the foregoing power, such rules may provide for the procedure to be followed by the authorised officer, --
(i) for obtaining ingress into such building or place to be searched where free ingress thereto is not available;
(ii) for ensuring safe custody of any books, accounts, papers, receipts, vouchers, reports, or other documents seized under this section.]1. Subs. by s. 30 and the First Schedule, [Serial no. 22 (a)], ibid., for "Controller" (w.e.f. 19-4-2000).
2. Subs. by Act 5 of 2015, s. 41, for "an officer authorised by the Authority" (w.e.f. 26-12-2014).
3. Subs. by Act 62 of 1968, s. 33 and the First Schedule [Serial no. 22 (b)], for "Controller" (w.e.f. 19-4-2000).
4. Subs. by Act 41 of 1999, s. 30 and the First Schedule for [Serial no. 22 (b)] "Controller" (w.e.f. 19-4-2000).
5. Subs. by Act 5 of 2015, s. 41, for "Central Government" (w.e.f. 26-12-2014).
6. Subs. by Act 20 of 1983, s. 2 and the Schedule, for "may make rules" (w.e.f. 15-3-1984). | 6 | Search and seizure |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18162§ionno=34H&orderno=68 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 34H | Search and seizure | (1) Where the 1[Chairperson of the Authority], in consequence of information in his possession, has reason to believe that --
(a) any person who has been required under sub-section (2) of section 33 to produce, or cause to be produced, any books, accounts or other documents in his custody or power has omitted or failed to produce, or cause to be produced, such books, accounts or other documents, or
(b) Any person to whom a requisition to produce any books, accounts or other documents as aforesaid has been or might be issued will not, or would not, produce or cause to be produced, any books, accounts or other documents which will be useful for, or relevant to, an investigation under sub-section (1) of section 33 or an inspection under sub-section (1A) of that section, or
(c) a contravention of any provision of this Act has been committed or is likely to be committed by an insurer, or
(d) any claim which is due to be settled by an insurer, has been or is likely to be rejected or settled at a figure higher than a reasonable amount, or
(e) any claim which is due to be settled by an insurer, has been or is likely to be rejected or settled at a figure lower than a reasonable amount, or
(f) any illegal rebate or commission has been paid or is likely to be paid by an insurer, or
(g) any books, accounts, receipts, vouchers, survey reports or other documents, belonging to an insurer are likely to be tampered with, falsified or manufactured,
he may authorise any subordinate officer of his, not lower in rank than 2[a Deputy Director or an equivalent officer] (hereafter referred to as the authorised officer) to --
(i) enter and search any building or place where he has reason to suspect that such books, accounts or other documents, or any books or papers relating to any claim, rebate or commission or any receipts, vouchers, reports or other documents are kept;
(ii) break open the lock of any door, box, locker, safe, almirah or other receptacle for exercising the powers conferred by clause (i) where the keys thereof are not available;
(iii) seize all or any such books, accounts or other documents, found as a result of such search;
(iv) place marks of identification on such books, accounts or other documents or make or cause to be made extracts or copies therefrom.
(2) The authorised officer may requisition the services of any police-officer or of any officer of the Central Government, or of both, to assist hi m for all or any of the purposes specified in sub-section (1) and it shall be the duty of every such officer to comply with such requisition.
(3) The authorised officer may, where it is not practicable to seize any such book, account or other document, specified in sub-section (1), serve an order on the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it except with the previous permission of such officer and such officer may take such steps as may be necessary for ensuring compliance with this sub-section.
(4) The authorised officer may, during the course of the search or seizure, examine on oath any person who is found to be in possession or control of any books, accounts or other documents, and any statement made by such person during such examination may thereafter be used in evidence in any proceeding under this Act.
(5) The books, accounts, papers, receipts, vouchers, reports, or other documents seized under sub-section (1) shall not be retained by the authorised officer for a period exceeding one hundred and eighty days from the date of the seizure unless the reasons for retaining the same recorded by hi m in writing and the approval of the 3[Chairperson of the Authority] for such retention is obtained:
Provided that the 3[Chairperson of the Authority] shall not authorise the retention of the books, accounts, papers, receipts, vouchers, reports, or other documents for a period exceeding thirty days after all the proceedings under this Act for which the books, accounts, papers, receipts, vouchers, reports, or other documents are relevant are completed.
(6 ) The person from whose custody and books, accounts, papers, receipts, vouchers, reports, or other documents are seized under sub-section (1) may make copies thereof, or take extracts therefrom, in the presence of the authorised officer or any other person empowered by hi m in this behalf at such place and time as the authorised officer may appoint in this behalf.
(7) If a person legally entitled to the books, accounts, papers, receipts, vouchers, reports or other documents seized under sub-section (1) objects for any reason to the approval given by the 4[Chairperson of the Authority] under sub-section (5), he may make an application to the 5[Securities Appellate Tribunal] stating therein the reason for such objection and requesting for the return of the books, accounts, papers, receipts, vouchers, reports or other documents.
(8) On receipt of the application under sub-section (7), the 5[Securities Appellate Tribunal] may, after giving the applicant an opportunity of being heard, pass such orders as it thinks fit.
(9) The provisions of the Code of Criminal Procedure, 1898 (5 of 1898) relating to searches and seizures shall apply, so far as may be, to every search and seizure made under sub-section (1).
(10) The Central Government 6[ may, by notification in the Official Gazette; make rules] in relation to any search or seizure under this section; in particular, and without prejudice to the generality of the foregoing power, such rules may provide for the procedure to be followed by the authorised officer, --
(i) for obtaining ingress into such building or place to be searched where free ingress thereto is not available;
(ii) for ensuring safe custody of any books, accounts, papers, receipts, vouchers, reports, or other documents seized under this section.]1. Subs. by s. 30 and the First Schedule, [Serial no. 22 (a)], ibid., for "Controller" (w.e.f. 19-4-2000).
2. Subs. by Act 5 of 2015, s. 41, for "an officer authorised by the Authority" (w.e.f. 26-12-2014).
3. Subs. by Act 62 of 1968, s. 33 and the First Schedule [Serial no. 22 (b)], for "Controller" (w.e.f. 19-4-2000).
4. Subs. by Act 41 of 1999, s. 30 and the First Schedule for [Serial no. 22 (b)] "Controller" (w.e.f. 19-4-2000).
5. Subs. by Act 5 of 2015, s. 41, for "Central Government" (w.e.f. 26-12-2014).
6. Subs. by Act 20 of 1983, s. 2 and the Schedule, for "may make rules" (w.e.f. 15-3-1984). | 7 | Search and seizure |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18162§ionno=34H&orderno=68 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 34H | Search and seizure | (1) Where the 1[Chairperson of the Authority], in consequence of information in his possession, has reason to believe that --
(a) any person who has been required under sub-section (2) of section 33 to produce, or cause to be produced, any books, accounts or other documents in his custody or power has omitted or failed to produce, or cause to be produced, such books, accounts or other documents, or
(b) Any person to whom a requisition to produce any books, accounts or other documents as aforesaid has been or might be issued will not, or would not, produce or cause to be produced, any books, accounts or other documents which will be useful for, or relevant to, an investigation under sub-section (1) of section 33 or an inspection under sub-section (1A) of that section, or
(c) a contravention of any provision of this Act has been committed or is likely to be committed by an insurer, or
(d) any claim which is due to be settled by an insurer, has been or is likely to be rejected or settled at a figure higher than a reasonable amount, or
(e) any claim which is due to be settled by an insurer, has been or is likely to be rejected or settled at a figure lower than a reasonable amount, or
(f) any illegal rebate or commission has been paid or is likely to be paid by an insurer, or
(g) any books, accounts, receipts, vouchers, survey reports or other documents, belonging to an insurer are likely to be tampered with, falsified or manufactured,
he may authorise any subordinate officer of his, not lower in rank than 2[a Deputy Director or an equivalent officer] (hereafter referred to as the authorised officer) to --
(i) enter and search any building or place where he has reason to suspect that such books, accounts or other documents, or any books or papers relating to any claim, rebate or commission or any receipts, vouchers, reports or other documents are kept;
(ii) break open the lock of any door, box, locker, safe, almirah or other receptacle for exercising the powers conferred by clause (i) where the keys thereof are not available;
(iii) seize all or any such books, accounts or other documents, found as a result of such search;
(iv) place marks of identification on such books, accounts or other documents or make or cause to be made extracts or copies therefrom.
(2) The authorised officer may requisition the services of any police-officer or of any officer of the Central Government, or of both, to assist hi m for all or any of the purposes specified in sub-section (1) and it shall be the duty of every such officer to comply with such requisition.
(3) The authorised officer may, where it is not practicable to seize any such book, account or other document, specified in sub-section (1), serve an order on the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it except with the previous permission of such officer and such officer may take such steps as may be necessary for ensuring compliance with this sub-section.
(4) The authorised officer may, during the course of the search or seizure, examine on oath any person who is found to be in possession or control of any books, accounts or other documents, and any statement made by such person during such examination may thereafter be used in evidence in any proceeding under this Act.
(5) The books, accounts, papers, receipts, vouchers, reports, or other documents seized under sub-section (1) shall not be retained by the authorised officer for a period exceeding one hundred and eighty days from the date of the seizure unless the reasons for retaining the same recorded by hi m in writing and the approval of the 3[Chairperson of the Authority] for such retention is obtained:
Provided that the 3[Chairperson of the Authority] shall not authorise the retention of the books, accounts, papers, receipts, vouchers, reports, or other documents for a period exceeding thirty days after all the proceedings under this Act for which the books, accounts, papers, receipts, vouchers, reports, or other documents are relevant are completed.
(6 ) The person from whose custody and books, accounts, papers, receipts, vouchers, reports, or other documents are seized under sub-section (1) may make copies thereof, or take extracts therefrom, in the presence of the authorised officer or any other person empowered by hi m in this behalf at such place and time as the authorised officer may appoint in this behalf.
(7) If a person legally entitled to the books, accounts, papers, receipts, vouchers, reports or other documents seized under sub-section (1) objects for any reason to the approval given by the 4[Chairperson of the Authority] under sub-section (5), he may make an application to the 5[Securities Appellate Tribunal] stating therein the reason for such objection and requesting for the return of the books, accounts, papers, receipts, vouchers, reports or other documents.
(8) On receipt of the application under sub-section (7), the 5[Securities Appellate Tribunal] may, after giving the applicant an opportunity of being heard, pass such orders as it thinks fit.
(9) The provisions of the Code of Criminal Procedure, 1898 (5 of 1898) relating to searches and seizures shall apply, so far as may be, to every search and seizure made under sub-section (1).
(10) The Central Government 6[ may, by notification in the Official Gazette; make rules] in relation to any search or seizure under this section; in particular, and without prejudice to the generality of the foregoing power, such rules may provide for the procedure to be followed by the authorised officer, --
(i) for obtaining ingress into such building or place to be searched where free ingress thereto is not available;
(ii) for ensuring safe custody of any books, accounts, papers, receipts, vouchers, reports, or other documents seized under this section.]1. Subs. by s. 30 and the First Schedule, [Serial no. 22 (a)], ibid., for "Controller" (w.e.f. 19-4-2000).
2. Subs. by Act 5 of 2015, s. 41, for "an officer authorised by the Authority" (w.e.f. 26-12-2014).
3. Subs. by Act 62 of 1968, s. 33 and the First Schedule [Serial no. 22 (b)], for "Controller" (w.e.f. 19-4-2000).
4. Subs. by Act 41 of 1999, s. 30 and the First Schedule for [Serial no. 22 (b)] "Controller" (w.e.f. 19-4-2000).
5. Subs. by Act 5 of 2015, s. 41, for "Central Government" (w.e.f. 26-12-2014).
6. Subs. by Act 20 of 1983, s. 2 and the Schedule, for "may make rules" (w.e.f. 15-3-1984). | 8 | Search and seizure e.f.26-12-2014).3.Subs.by Act 62 of 1968, s.33 and the First Schedule [Serial no.22 (b)], for "Controller" (w.e.f.19-4-2000).4.Subs.by Act 41 of 1999, s.30 and the First Schedule for [Serial no.22 (b)] "Controller" (w.e.f.19-4-2000).5.Subs.by Act 5 of 2015, s.41, for "Central Government" (w.e.f.26-12-2014).6.Subs.by Act 20 of 1983, s.2 and the Schedule, for "may make rules" (w.e.f.15-3-1984). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18163§ionno=35&orderno=69 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 35 | Amalgamation and transfer of insurance business | 1[(1) Notwithstanding anything contained in any other law for the time being in force, no insurance business of an insurer shall be transferred to or amalgamated with the insurance business of any other insurer except in accordance with a scheme prepared under this section and approved by the Authority.]
(2) Any scheme prepared under this section shall set out the agreement under which the transfer or amalgamation is proposed to be effected, and shall contain such further provisions as may be necessary for giving effect to the scheme.
(3) Before an application is made to the 2[Authority] 3[to approve any such scheme] notices of the intention to make the application together with a statement of the nature of the amalgamation or transfer, as the case may be, and of the reason therefore shall, at least two months before the application is made, be sent to the 2[Authority] 4[and certified copies, four in number, of each of the following documents shall be furnished to the 2[Authority], and other such copies shall] during the two months aforesaid be kept open for the inspection of the members and policy-holders at the principal and branch offices and chief agencies of the insurers concerned, namely: --
(a) a draft of the agreement or deed under which it is proposed to effect the amalgamation or transfer;
5[(b) balance sheets in respect of the insurance business of each of the insurers concerned in such amalgamation or transfer, prepared in such forms as may be specified by the regulations;
(c) actuarial reports and abstracts in respect of the life insurance business of each of the insurers so concerned, prepared in conformity with the regulations specified in this regard.]
(d) a report on the proposed amalgamation or transfer, prepared by an independent actuary who has never been professionally connected with any of the parties concerned in the amalgamation or transfer at any time in the five years preceding the date on which he signs hi s report;
(e) any other reports on which the scheme of amalgamation or transfer was founded.
The balance-sheets, reports and abstracts referred to in clauses (b), (c) and (d) shall be prepared as at the date at which 6[the amalgamation or transfer if approved] by the 7[Authority] is to take effect, which date shall not be more than twelve months before the date on which the application to the 7[Authority] is made under this section:
Provided that if the 7[Authority] so directs in the case of any particular insurer there may be substituted respectively for the balance-sheet, report and abstract referred to in clauses (b) and (c) prepared in accordance with this sub-section certified copies of the last balance-sheet and last report and abstract prepared in accordance with sections 11 and 13 8[of this Act or sections 7 and 8 of the Indian Life Assurance Companies Act, 1912 ( 6 of 1912 ),] if that balance-sheet is prepared as at a date not more than twelve months, and that report and abstract as at a date not more than five years, before the date on which the application to the 7[Authority] is made under this section].1. Subs. by Act 5 of 2015, s. 42, for sub-section (1) (w.e.f. 26-12-2014).
2. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000).
3. Subs. by s. 30 and the First Schedule, ibid., for "to sanction any such scheme" (w.e.f. 19-4-2000).
4. Subs. by Act 13 of 1941, s. 22, for "and certified copies of the following documents shall be furnished to the Central Government and shall" (w.e.f. 8-4-1941).
5. Subs. by Act 5 of 2015, s. 42, for clauses (b) and (c) (w.e.f. 26-12-2014).
6. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "the amalgamation or transfer if sanctioned" (w.e.f. 19-4-2000).
7. Subs. by s. 30 and the First Schedule, ibid., for "Controller" (w.e.f. 19-4-2000). Earlier subs. by Act 47 of 1950, s. 26, for "Court" (w.e.f. 1-6-1950).
8. Ins. by Act 13 of 1941, s. 22 (w.e.f. 8-4-1941). | 0 | Amalgamation and transfer of insurance business 1[(1) Notwithstanding anything contained in any other law for the time being in force, no insurance business of an insurer shall be transferred to or amalgamated with the insurance business of any other insurer except in accordance with a scheme prepared under this section and approved by the Authority.]
(2) Any scheme prepared under this section shall set out the agreement under which the transfer or amalgamation is proposed to be effected, and shall contain such further provisions as may be necessary for giving effect to the scheme.(3) Before an application is made to the 2[Authority] 3[to approve any such scheme] notices of the intention to make the application together with a statement of the nature of the amalgamation or transfer, as the case may be, and of the reason therefore shall, at least two months before the application is made, be sent to the 2[Authority] 4[and certified copies, four in number, of each of the following documents shall be furnished to the 2[Authority], and other such copies shall] during the two months aforesaid be kept open for the inspection of the members and policy-holders at the principal and branch offices and chief agencies of the insurers concerned, namely: --
(a) a draft of the agreement or deed under which it is proposed to effect the amalgamation or transfer;
5[(b) balance sheets in respect of the insurance business of each of the insurers concerned in such amalgamation or transfer, prepared in such forms as may be specified by the regulations;
(c) actuarial reports and abstracts in respect of the life insurance business of each of the insurers so concerned, prepared in conformity with the regulations specified in this regard.]
(d) a report on the proposed amalgamation or transfer, prepared by an independent actuary who has never been professionally connected with any of the parties concerned in the amalgamation or transfer at any time in the five years preceding the date on which he signs hi s report;
(e) any other reports on which the scheme of amalgamation or transfer was founded. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18163§ionno=35&orderno=69 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 35 | Amalgamation and transfer of insurance business | 1[(1) Notwithstanding anything contained in any other law for the time being in force, no insurance business of an insurer shall be transferred to or amalgamated with the insurance business of any other insurer except in accordance with a scheme prepared under this section and approved by the Authority.]
(2) Any scheme prepared under this section shall set out the agreement under which the transfer or amalgamation is proposed to be effected, and shall contain such further provisions as may be necessary for giving effect to the scheme.
(3) Before an application is made to the 2[Authority] 3[to approve any such scheme] notices of the intention to make the application together with a statement of the nature of the amalgamation or transfer, as the case may be, and of the reason therefore shall, at least two months before the application is made, be sent to the 2[Authority] 4[and certified copies, four in number, of each of the following documents shall be furnished to the 2[Authority], and other such copies shall] during the two months aforesaid be kept open for the inspection of the members and policy-holders at the principal and branch offices and chief agencies of the insurers concerned, namely: --
(a) a draft of the agreement or deed under which it is proposed to effect the amalgamation or transfer;
5[(b) balance sheets in respect of the insurance business of each of the insurers concerned in such amalgamation or transfer, prepared in such forms as may be specified by the regulations;
(c) actuarial reports and abstracts in respect of the life insurance business of each of the insurers so concerned, prepared in conformity with the regulations specified in this regard.]
(d) a report on the proposed amalgamation or transfer, prepared by an independent actuary who has never been professionally connected with any of the parties concerned in the amalgamation or transfer at any time in the five years preceding the date on which he signs hi s report;
(e) any other reports on which the scheme of amalgamation or transfer was founded.
The balance-sheets, reports and abstracts referred to in clauses (b), (c) and (d) shall be prepared as at the date at which 6[the amalgamation or transfer if approved] by the 7[Authority] is to take effect, which date shall not be more than twelve months before the date on which the application to the 7[Authority] is made under this section:
Provided that if the 7[Authority] so directs in the case of any particular insurer there may be substituted respectively for the balance-sheet, report and abstract referred to in clauses (b) and (c) prepared in accordance with this sub-section certified copies of the last balance-sheet and last report and abstract prepared in accordance with sections 11 and 13 8[of this Act or sections 7 and 8 of the Indian Life Assurance Companies Act, 1912 ( 6 of 1912 ),] if that balance-sheet is prepared as at a date not more than twelve months, and that report and abstract as at a date not more than five years, before the date on which the application to the 7[Authority] is made under this section].1. Subs. by Act 5 of 2015, s. 42, for sub-section (1) (w.e.f. 26-12-2014).
2. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000).
3. Subs. by s. 30 and the First Schedule, ibid., for "to sanction any such scheme" (w.e.f. 19-4-2000).
4. Subs. by Act 13 of 1941, s. 22, for "and certified copies of the following documents shall be furnished to the Central Government and shall" (w.e.f. 8-4-1941).
5. Subs. by Act 5 of 2015, s. 42, for clauses (b) and (c) (w.e.f. 26-12-2014).
6. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "the amalgamation or transfer if sanctioned" (w.e.f. 19-4-2000).
7. Subs. by s. 30 and the First Schedule, ibid., for "Controller" (w.e.f. 19-4-2000). Earlier subs. by Act 47 of 1950, s. 26, for "Court" (w.e.f. 1-6-1950).
8. Ins. by Act 13 of 1941, s. 22 (w.e.f. 8-4-1941). | 1 | Amalgamation and transfer of insurance business The balance-sheets, reports and abstracts referred to in clauses (b), (c) and (d) shall be prepared as at the date at which 6[the amalgamation or transfer if approved] by the 7[Authority] is to take effect, which date shall not be more than twelve months before the date on which the application to the 7[Authority] is made under this section:
Provided that if the 7[Authority] so directs in the case of any particular insurer there may be substituted respectively for the balance-sheet, report and abstract referred to in clauses (b) and (c) prepared in accordance with this sub-section certified copies of the last balance-sheet and last report and abstract prepared in accordance with sections 11 and 13 8[of this Act or sections 7 and 8 of the Indian Life Assurance Companies Act, 1912 ( 6 of 1912 ),] if that balance-sheet is prepared as at a date not more than twelve months, and that report and abstract as at a date not more than five years, before the date on which the application to the 7[Authority] is made under this section]. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18163§ionno=35&orderno=69 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 35 | Amalgamation and transfer of insurance business | 1[(1) Notwithstanding anything contained in any other law for the time being in force, no insurance business of an insurer shall be transferred to or amalgamated with the insurance business of any other insurer except in accordance with a scheme prepared under this section and approved by the Authority.]
(2) Any scheme prepared under this section shall set out the agreement under which the transfer or amalgamation is proposed to be effected, and shall contain such further provisions as may be necessary for giving effect to the scheme.
(3) Before an application is made to the 2[Authority] 3[to approve any such scheme] notices of the intention to make the application together with a statement of the nature of the amalgamation or transfer, as the case may be, and of the reason therefore shall, at least two months before the application is made, be sent to the 2[Authority] 4[and certified copies, four in number, of each of the following documents shall be furnished to the 2[Authority], and other such copies shall] during the two months aforesaid be kept open for the inspection of the members and policy-holders at the principal and branch offices and chief agencies of the insurers concerned, namely: --
(a) a draft of the agreement or deed under which it is proposed to effect the amalgamation or transfer;
5[(b) balance sheets in respect of the insurance business of each of the insurers concerned in such amalgamation or transfer, prepared in such forms as may be specified by the regulations;
(c) actuarial reports and abstracts in respect of the life insurance business of each of the insurers so concerned, prepared in conformity with the regulations specified in this regard.]
(d) a report on the proposed amalgamation or transfer, prepared by an independent actuary who has never been professionally connected with any of the parties concerned in the amalgamation or transfer at any time in the five years preceding the date on which he signs hi s report;
(e) any other reports on which the scheme of amalgamation or transfer was founded.
The balance-sheets, reports and abstracts referred to in clauses (b), (c) and (d) shall be prepared as at the date at which 6[the amalgamation or transfer if approved] by the 7[Authority] is to take effect, which date shall not be more than twelve months before the date on which the application to the 7[Authority] is made under this section:
Provided that if the 7[Authority] so directs in the case of any particular insurer there may be substituted respectively for the balance-sheet, report and abstract referred to in clauses (b) and (c) prepared in accordance with this sub-section certified copies of the last balance-sheet and last report and abstract prepared in accordance with sections 11 and 13 8[of this Act or sections 7 and 8 of the Indian Life Assurance Companies Act, 1912 ( 6 of 1912 ),] if that balance-sheet is prepared as at a date not more than twelve months, and that report and abstract as at a date not more than five years, before the date on which the application to the 7[Authority] is made under this section].1. Subs. by Act 5 of 2015, s. 42, for sub-section (1) (w.e.f. 26-12-2014).
2. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000).
3. Subs. by s. 30 and the First Schedule, ibid., for "to sanction any such scheme" (w.e.f. 19-4-2000).
4. Subs. by Act 13 of 1941, s. 22, for "and certified copies of the following documents shall be furnished to the Central Government and shall" (w.e.f. 8-4-1941).
5. Subs. by Act 5 of 2015, s. 42, for clauses (b) and (c) (w.e.f. 26-12-2014).
6. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "the amalgamation or transfer if sanctioned" (w.e.f. 19-4-2000).
7. Subs. by s. 30 and the First Schedule, ibid., for "Controller" (w.e.f. 19-4-2000). Earlier subs. by Act 47 of 1950, s. 26, for "Court" (w.e.f. 1-6-1950).
8. Ins. by Act 13 of 1941, s. 22 (w.e.f. 8-4-1941). | 2 | Amalgamation and transfer of insurance business |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18163§ionno=35&orderno=69 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 35 | Amalgamation and transfer of insurance business | 1[(1) Notwithstanding anything contained in any other law for the time being in force, no insurance business of an insurer shall be transferred to or amalgamated with the insurance business of any other insurer except in accordance with a scheme prepared under this section and approved by the Authority.]
(2) Any scheme prepared under this section shall set out the agreement under which the transfer or amalgamation is proposed to be effected, and shall contain such further provisions as may be necessary for giving effect to the scheme.
(3) Before an application is made to the 2[Authority] 3[to approve any such scheme] notices of the intention to make the application together with a statement of the nature of the amalgamation or transfer, as the case may be, and of the reason therefore shall, at least two months before the application is made, be sent to the 2[Authority] 4[and certified copies, four in number, of each of the following documents shall be furnished to the 2[Authority], and other such copies shall] during the two months aforesaid be kept open for the inspection of the members and policy-holders at the principal and branch offices and chief agencies of the insurers concerned, namely: --
(a) a draft of the agreement or deed under which it is proposed to effect the amalgamation or transfer;
5[(b) balance sheets in respect of the insurance business of each of the insurers concerned in such amalgamation or transfer, prepared in such forms as may be specified by the regulations;
(c) actuarial reports and abstracts in respect of the life insurance business of each of the insurers so concerned, prepared in conformity with the regulations specified in this regard.]
(d) a report on the proposed amalgamation or transfer, prepared by an independent actuary who has never been professionally connected with any of the parties concerned in the amalgamation or transfer at any time in the five years preceding the date on which he signs hi s report;
(e) any other reports on which the scheme of amalgamation or transfer was founded.
The balance-sheets, reports and abstracts referred to in clauses (b), (c) and (d) shall be prepared as at the date at which 6[the amalgamation or transfer if approved] by the 7[Authority] is to take effect, which date shall not be more than twelve months before the date on which the application to the 7[Authority] is made under this section:
Provided that if the 7[Authority] so directs in the case of any particular insurer there may be substituted respectively for the balance-sheet, report and abstract referred to in clauses (b) and (c) prepared in accordance with this sub-section certified copies of the last balance-sheet and last report and abstract prepared in accordance with sections 11 and 13 8[of this Act or sections 7 and 8 of the Indian Life Assurance Companies Act, 1912 ( 6 of 1912 ),] if that balance-sheet is prepared as at a date not more than twelve months, and that report and abstract as at a date not more than five years, before the date on which the application to the 7[Authority] is made under this section].1. Subs. by Act 5 of 2015, s. 42, for sub-section (1) (w.e.f. 26-12-2014).
2. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000).
3. Subs. by s. 30 and the First Schedule, ibid., for "to sanction any such scheme" (w.e.f. 19-4-2000).
4. Subs. by Act 13 of 1941, s. 22, for "and certified copies of the following documents shall be furnished to the Central Government and shall" (w.e.f. 8-4-1941).
5. Subs. by Act 5 of 2015, s. 42, for clauses (b) and (c) (w.e.f. 26-12-2014).
6. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "the amalgamation or transfer if sanctioned" (w.e.f. 19-4-2000).
7. Subs. by s. 30 and the First Schedule, ibid., for "Controller" (w.e.f. 19-4-2000). Earlier subs. by Act 47 of 1950, s. 26, for "Court" (w.e.f. 1-6-1950).
8. Ins. by Act 13 of 1941, s. 22 (w.e.f. 8-4-1941). | 3 | Amalgamation and transfer of insurance business 1.Subs.by Act 5 of 2015, s.42, for sub-section (1) (w.e.f.26-12-2014).2.Subs.by Act 41 of 1999, s.30 and the First Schedule, for "Controller" (w.e.f.19-4-2000).3.Subs.by s.30 and the First Schedule, ibid., for "to sanction any such scheme" (w.e.f.19-4-2000).4.Subs.by Act 13 of 1941, s.22, for "and certified copies of the following documents shall be furnished to the Central Government and shall" (w.e.f.8-4-1941).5.Subs.by Act 5 of 2015, s.42, for clauses (b) and (c) (w.e.f.26-12-2014).6.Subs.by Act 41 of 1999, s.30 and the First Schedule, for "the amalgamation or transfer if sanctioned" (w.e.f.19-4-2000).7.Subs.by s.30 and the First Schedule, ibid., for "Controller" (w.e.f.19-4-2000).Earlier subs.by Act 47 of 1950, s.26, for "Court" (w.e.f.1-6-1950).8.Ins.by Act 13 of 1941, s.22 (w.e.f.8-4-1941). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18164§ionno=36&orderno=70 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 36 | Sanction of amalgamation and transfer by Controller | 1[36. Sanction of amalgamation and transfer by Authority.--When any application under sub-section (3) of section 35 is made to the Authority, the Authority shall cause, a notice of the application to be given to the holders of any kind of policy of insurer concerned alongwith statement of the nature and terms of the amalgamation or transfer, as the case may be, to be published in such manner and for such period as it may direct, and, after hearing the directors and considering the objections of the policyholders and any other persons whom it considers entitled to be heard, may approve the arrangement, and shall make such consequential orders as are necessary to give effect to the arrangement.]1. Subs. by Act 5 of 2015, s. 43, for section 36 (w.e.f. 26-12-2014). | 0 | Sanction of amalgamation and transfer by Controller 1[36.Sanction of amalgamation and transfer by Authority.--When any application under sub-section (3) of section 35 is made to the Authority, the Authority shall cause, a notice of the application to be given to the holders of any kind of policy of insurer concerned alongwith statement of the nature and terms of the amalgamation or transfer, as the case may be, to be published in such manner and for such period as it may direct, and, after hearing the directors and considering the objections of the policyholders and any other persons whom it considers entitled to be heard, may approve the arrangement, and shall make such consequential orders as are necessary to give effect to the arrangement.]1.Subs.by Act 5 of 2015, s.43, for section 36 (w.e.f.26-12-2014). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18165§ionno=37&orderno=71 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 37 | Statements required after amalgamation and transfer | Where an amalgamation takes place between any two or more insurers, or 2[where any business of an insurer is transferred], whether in accordance with a scheme confirmed by the 1[Authority] or otherwise, the insurer carrying on the amalgamated business or 3[the person to whom the business is transferred], as the case may be, shall, within three months from the date of the completion of the amalgamation or transfer, 4[furnish in duplicate to the 1[Authority]] --
(a) a certified copy of the scheme, agreement or deed under which the amalgamation or transfer has been effected, and
(b) 5[ a declaration signed by every party concerned] or in the case of a company by the chairman and the principal officer that to the best of their belief every payment made or to be made to any person whatsoever on account of the amalgamation or transfer is therein fully set forth and that no other payments beyond those set forth have been made or are to be made either in money, policies, bonds, valuable securities or other property by or with the knowledge of any parties to the amalgamation or transfer, and
6[(c) where the amalgamation or transfer has not been made in accordance with a 7[scheme approved] by the 8[Authority] under section 36--
(i) balance-sheets in respect of the insurance business of each of the insurers concerned in such amalgamation or transfer, prepared in the Form set forth in Part II of the First Schedule and in accordance with the regulations contained in Part I of that Schedule, and
(ii) certified copies of any other reports on which the scheme of amalgamation or transfer was founded.]1. Subs. by s. 30 and the First Schedule, ibid., for "Controller" (w.e.f. 19-4-2000). Earlier subs. by Act 47 of 1950, s. 26, for "Court" (w.e.f. 1-6-1950).
2. Subs. by Act 13 of 1941, s. 24, for "where any business of one insurer is transferred to another" (w.e.f. 8-4-1941).
3. Subs. by s. 24, ibid., for "the insurer to whom the business is transferred" (w.e.f. 8-4-1941).
4. Subs. by s. 24, ibid., for "furnish to the Central Government" (w.e.f. 8-4-1941).
5. Subs. by Act 13 of 1941, s. 21, for "a declaration signed by every insurer concerned" (w.e.f. 8-4-1941).
6. Subs. s. 24, ibid., for clause (c) (w.e.f. 8-4-1941).
7. Subs. by Act 41 of 1999, s. 30 the First Schedule, for "scheme sanctioned" (w.e.f. 19-4-2000).
8. Subs. by s. 30, and the First Schedule, ibid., for "Controller" (w.e.f. 19-4-2000). | 0 | Statements required after amalgamation and transfer Where an amalgamation takes place between any two or more insurers, or 2[where any business of an insurer is transferred], whether in accordance with a scheme confirmed by the 1[Authority] or otherwise, the insurer carrying on the amalgamated business or 3[the person to whom the business is transferred], as the case may be, shall, within three months from the date of the completion of the amalgamation or transfer, 4[furnish in duplicate to the 1[Authority]] --
(a) a certified copy of the scheme, agreement or deed under which the amalgamation or transfer has been effected, and
(b) 5[ a declaration signed by every party concerned] or in the case of a company by the chairman and the principal officer that to the best of their belief every payment made or to be made to any person whatsoever on account of the amalgamation or transfer is therein fully set forth and that no other payments beyond those set forth have been made or are to be made either in money, policies, bonds, valuable securities or other property by or with the knowledge of any parties to the amalgamation or transfer, and
6[(c) where the amalgamation or transfer has not been made in accordance with a 7[scheme approved] by the 8[Authority] under section 36--
(i) balance-sheets in respect of the insurance business of each of the insurers concerned in such amalgamation or transfer, prepared in the Form set forth in Part II of the First Schedule and in accordance with the regulations contained in Part I of that Schedule, and
(ii) certified copies of any other reports on which the scheme of amalgamation or transfer was founded.]1.Subs.by s.30 and the First Schedule, ibid., for "Controller" (w.e.f.19-4-2000).Earlier subs.by Act 47 of 1950, s.26, for "Court" (w.e.f.1-6-1950).2.Subs.by Act 13 of 1941, s.24, for "where any business of one insurer is transferred to another" (w.e.f.8-4-1941).3.Subs.by s.24, ibid., for "the insurer to whom the business is transferred" (w.e.f.8-4-1941).4.Subs.by s.24, ibid., for "furnish to the Central Government" (w.e.f.8-4-1941).5.Subs.by Act 13 of 1941, s.21, for "a declaration signed by every insurer concerned" (w.e.f.8-4-1941).6.Subs.s.24, ibid., for clause (c) (w.e.f.8-4-1941).7.Subs.by Act 41 of 1999, s.30 the First Schedule, for "scheme sanctioned" (w.e.f.19-4-2000).8.Subs.by s.30, and the First Schedule, ibid., for "Controller" (w.e.f.19-4-2000). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18166§ionno=37A&orderno=72 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 37A | Power of Authority to prepare Scheme of Amalgamation | 2[37A. Power of 1[Authority] to prepare Scheme of Amalgamation. --(1) If the 1[Authority] is satisfied that--
(i) in the public interest; or
(ii) in the interests of the policy-holders; or
(iii) in order to secure the proper management of an insurer; or
(iv) in the interest of insurance business of the country as a whole,
it is necessary so to do, he may prepare a scheme for the amalgamation of that insurer with any other insurer (hereinafter referred to in this section as the transferee insurer):
Provided that no such scheme shall be prepared unless the other insurer has given his written consent to the proposal for such amalgamation.
(2) The scheme aforesaid may contain provisions for all or any of the following matters, namely: --
(a) the constitution, name and registered office, the capital, assets, powers, rights, interests, authorities and privileges, and the liabilities, duties and obligations of the transferee insurer;
(b) the transfer to the transferee insurer of the business, properties, assets and liabilities of the insurer on such terms and conditions as may be specified in the scheme;
(c) any change in the Board of Directors, or the appointment of a new Board of Directors of the transferee insurer and the authority by whom, the manner in which, and the other terms and conditions on which, such change or appointment shall be made, and, in the case of appointment of a new Board of Directors or of any director, the period for which such appointment shall be made;
(d) the alteration of the memorandum and articles of association of the transferee insurer for the purpose of altering the capital thereof or for such other purposes as may be necessary to give effect to the amalgamation;
(e) subject to the provisions of the scheme, the continuation by or against the transferee insurer, of any actions or proceedings pending against the insurer;
(f) the reduction of the interest or rights which the shareholders, policy-holders and other creditors have in or against the insurer before the amalgamation to such extent as the 2[Authority[ considers necessary in the public interest or in the interests of the shareholders, policy-holders and other creditors or for the maintenance of the business of the insurer;
(g) the payment in cash or otherwise to policy-holders, and other creditors in full satisfaction of their claim,--
(i) in respect of their interest or rights in or against the insurer before the amalgamation; or
(ii) where their interest or rights aforesaid in or against the insurer has or have been reduced under clause (f) in respect of such interest or rights as so reduced;
(h) the allotment to the shareholders of the insurer for shares held by them therein before the amalgamation whether their interest in such shares has been reduced under clause (f) or not of shares in the transferee insurer and where any shareholders claim payment in cash and not allotment of shares, or where it is not possible to allot shares to any shareholders, the payment in cash to those shareholders in full satisfaction of their claim--
(i) in respect of their interest in shares in the insurer before the amalgamation; or
(ii) where such interest has been reduced under clause (f) in respect of their interest in shares as so reduced;
(i) the continuance of the services of all the employees of the insurer (excepting such of them as not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947), are specifically mentioned in the scheme) in the transferee insurer at the same remuneration and on the same terms and conditions of service, which they were getting or, as the case may be, by which they were being governed, immediately before the date of the amalgamation:
Provided that the scheme shall contain a provision that the transferee insurer shall pay or grant not later than the expiry of the period of three years, from the date of the amalgamation, to the said employees the same remuneration and the same terms and conditions of service as are applicable to the other employees of corresponding rank or status, of the transferee insurer subject to the qualifications and experience of the said employees being the same as or equivalent to those of such other employees of the transferee insurer:
Provided further that if in any case any doubt or difference arises as to whether the qualification and experience of any of the said employees are the same as or equivalent to the qualifications and experience of the other employees of corresponding rank or status of the transferee insurer, the doubt or difference shall be referred to the Controller whose decision thereon shall be final;
(j) notwithstanding anything contained in clause (i) where any of the employees of the insurer not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947), are specifically mentioned in the scheme under clause (i) of where any employees of the insurer have by notice in writing given to the insurer or, as the case may be, the transferee insurer at any time before the expiry of one month next following the date on which the scheme is sanctioned by the Central Government, intimated their intention of not becoming employees of the transferee insurer, the payment to such employees of compensation, if any, to which they are entitled under the Industrial Disputes Act, 1947 (14 of 1947), and such pension, gratuity, provident fund, or other retirement benefits ordinarily admissible to them under the rules or authorisations of the insurer immediately before the date of the amalgamation;
(k) any other terms and conditions for the amalgamation of the insurer;
(l) such incidental, consequential and supplemental matters as are necessary to secure that the amalgamation shall be fully and effectively carried out.
(3)(a) A copy of the scheme prepared by the 3[Authority] shall be sent in draft to the insurer and also to the transferee insurer and any other insurer concerned in the amalgamation, for suggestions and objections, if any, within such period as the 3Authority] may specify for this purpose.
(b) The 3[Authority] may make such modifications, if any, in the draft scheme as he may consider necessary in the light of the suggestions and objections received from the insurer and also from the transferee insurer and any other insurer concerned in the amalgamation and from any shareholder, policyholder or other creditor of each of those insurers and the transferee insurer.
4[(4) The scheme shall thereafter be placed before the Central Government for its sanction and the Central Government may sanction the scheme without any modification or with such modifications as it may consider necessary, and the scheme as sanctioned by the Central Government shall come into force on such date as the Central Government may notify in this behalf in the Official Gazette:
Provided that different dates may be specified for different provisions of the scheme.
(4A) Every policyholder or shareholder or member of each of the insurers, before amalgamation, shall have the same interest in, or rights against the insurer resulting from amalgamation as he had in the company of which he was originally a policyholder or shareholder or member:
Provided that where the interests or rights of any shareholder or member are less than his interest in, or rights against, the original insurer, he shall be entitled to compensation, which shall be assessed by the Authority in such manner as may be specified by the regulations.
(4B) The compensation so assessed shall be paid to the shareholder or member by the insurance company resulting from such amalgamation.
(4C) Any member or shareholder aggrieved by the assessment of compensation made by the Authority under sub-section (4A) may within thirty days from the publication of such assessment prefer an appeal to the Securities Appellate Tribunal.]
(5) The sanction accorded by the Central Government under sub-section (4) shall be conclusive evidence that all the requirements of this section relating to amalgamation have been complied with and a copy of the sanctioned scheme certified in writing by an officer of the Central Government to be a true copy thereof shall, in all legal proceedings (whether in appeal or otherwise) be admitted as evidence to the same extent as the original scheme.
(6) The 3[Authority] may, in like manner, add to amend or vary any scheme made under this section.
(7) On and from the date of the coming into operation of the scheme or any provision thereof, the scheme or such provision shall be binding on the insurer or, as the case may be, on the transferee insurer and any other insurer concerned in the amalgamation and also on all the shareholders, policy-holders and other creditors and employees of each of those insurers and of transferee insurer, and on any other person having any right or liability in relation to any of those insurers or the transferee insurer.
(8) On and from such date as may be specified by the Central Government in this behalf, the properties and assets of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to, and vest in, and the liabilities of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to and become the liabilities of the transferee insurer.
(9) If any difficulty arises in giving effect to the provisions of the scheme, the Central Government may by order do anything not inconsistent with such provisions which appears to it necessary or expedient for the purpose of removing the difficulty.
(10) Copies of every scheme made under this section and of every order made under sub-section (9) shall be laid before each House of Parliament, as soon as may be, after the scheme has been sanctioned by the Central Government, or as the case may be, the order has been made.
(11) Nothing in this section shall be deemed to prevent the amalgamation with an insurer by a single scheme of several insurers.
(12) The provisions of this section and of any scheme made under it shall have effect notwithstanding anything to the contrary contained in any other provisions of this Act or in any other law or any agreement, award or other instrument for the time being in force.
(13) The provisions of section 37 shall not apply to an amalgamation given effect to under the provisions of this section.]1. Subs. by s. 30, and the First Schedule, ibid., for "Controller" (w.e.f. 19-4-2000).
2. Ins. by Act 62 of 1968, s. 17 (w.e.f. 1-6-1969).
3. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000).
4. Subs. by Act 5 of 2015, s 44, for sub-section (4) (w.e.f. 26-12-2014). | 0 | Power of Authority to prepare Scheme of Amalgamation 2[37A.Power of 1[Authority] to prepare Scheme of Amalgamation.--(1) If the 1[Authority] is satisfied that--
(i) in the public interest; or
(ii) in the interests of the policy-holders; or
(iii) in order to secure the proper management of an insurer; or
(iv) in the interest of insurance business of the country as a whole,
it is necessary so to do, he may prepare a scheme for the amalgamation of that insurer with any other insurer (hereinafter referred to in this section as the transferee insurer):
Provided that no such scheme shall be prepared unless the other insurer has given his written consent to the proposal for such amalgamation. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18166§ionno=37A&orderno=72 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 37A | Power of Authority to prepare Scheme of Amalgamation | 2[37A. Power of 1[Authority] to prepare Scheme of Amalgamation. --(1) If the 1[Authority] is satisfied that--
(i) in the public interest; or
(ii) in the interests of the policy-holders; or
(iii) in order to secure the proper management of an insurer; or
(iv) in the interest of insurance business of the country as a whole,
it is necessary so to do, he may prepare a scheme for the amalgamation of that insurer with any other insurer (hereinafter referred to in this section as the transferee insurer):
Provided that no such scheme shall be prepared unless the other insurer has given his written consent to the proposal for such amalgamation.
(2) The scheme aforesaid may contain provisions for all or any of the following matters, namely: --
(a) the constitution, name and registered office, the capital, assets, powers, rights, interests, authorities and privileges, and the liabilities, duties and obligations of the transferee insurer;
(b) the transfer to the transferee insurer of the business, properties, assets and liabilities of the insurer on such terms and conditions as may be specified in the scheme;
(c) any change in the Board of Directors, or the appointment of a new Board of Directors of the transferee insurer and the authority by whom, the manner in which, and the other terms and conditions on which, such change or appointment shall be made, and, in the case of appointment of a new Board of Directors or of any director, the period for which such appointment shall be made;
(d) the alteration of the memorandum and articles of association of the transferee insurer for the purpose of altering the capital thereof or for such other purposes as may be necessary to give effect to the amalgamation;
(e) subject to the provisions of the scheme, the continuation by or against the transferee insurer, of any actions or proceedings pending against the insurer;
(f) the reduction of the interest or rights which the shareholders, policy-holders and other creditors have in or against the insurer before the amalgamation to such extent as the 2[Authority[ considers necessary in the public interest or in the interests of the shareholders, policy-holders and other creditors or for the maintenance of the business of the insurer;
(g) the payment in cash or otherwise to policy-holders, and other creditors in full satisfaction of their claim,--
(i) in respect of their interest or rights in or against the insurer before the amalgamation; or
(ii) where their interest or rights aforesaid in or against the insurer has or have been reduced under clause (f) in respect of such interest or rights as so reduced;
(h) the allotment to the shareholders of the insurer for shares held by them therein before the amalgamation whether their interest in such shares has been reduced under clause (f) or not of shares in the transferee insurer and where any shareholders claim payment in cash and not allotment of shares, or where it is not possible to allot shares to any shareholders, the payment in cash to those shareholders in full satisfaction of their claim--
(i) in respect of their interest in shares in the insurer before the amalgamation; or
(ii) where such interest has been reduced under clause (f) in respect of their interest in shares as so reduced;
(i) the continuance of the services of all the employees of the insurer (excepting such of them as not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947), are specifically mentioned in the scheme) in the transferee insurer at the same remuneration and on the same terms and conditions of service, which they were getting or, as the case may be, by which they were being governed, immediately before the date of the amalgamation:
Provided that the scheme shall contain a provision that the transferee insurer shall pay or grant not later than the expiry of the period of three years, from the date of the amalgamation, to the said employees the same remuneration and the same terms and conditions of service as are applicable to the other employees of corresponding rank or status, of the transferee insurer subject to the qualifications and experience of the said employees being the same as or equivalent to those of such other employees of the transferee insurer:
Provided further that if in any case any doubt or difference arises as to whether the qualification and experience of any of the said employees are the same as or equivalent to the qualifications and experience of the other employees of corresponding rank or status of the transferee insurer, the doubt or difference shall be referred to the Controller whose decision thereon shall be final;
(j) notwithstanding anything contained in clause (i) where any of the employees of the insurer not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947), are specifically mentioned in the scheme under clause (i) of where any employees of the insurer have by notice in writing given to the insurer or, as the case may be, the transferee insurer at any time before the expiry of one month next following the date on which the scheme is sanctioned by the Central Government, intimated their intention of not becoming employees of the transferee insurer, the payment to such employees of compensation, if any, to which they are entitled under the Industrial Disputes Act, 1947 (14 of 1947), and such pension, gratuity, provident fund, or other retirement benefits ordinarily admissible to them under the rules or authorisations of the insurer immediately before the date of the amalgamation;
(k) any other terms and conditions for the amalgamation of the insurer;
(l) such incidental, consequential and supplemental matters as are necessary to secure that the amalgamation shall be fully and effectively carried out.
(3)(a) A copy of the scheme prepared by the 3[Authority] shall be sent in draft to the insurer and also to the transferee insurer and any other insurer concerned in the amalgamation, for suggestions and objections, if any, within such period as the 3Authority] may specify for this purpose.
(b) The 3[Authority] may make such modifications, if any, in the draft scheme as he may consider necessary in the light of the suggestions and objections received from the insurer and also from the transferee insurer and any other insurer concerned in the amalgamation and from any shareholder, policyholder or other creditor of each of those insurers and the transferee insurer.
4[(4) The scheme shall thereafter be placed before the Central Government for its sanction and the Central Government may sanction the scheme without any modification or with such modifications as it may consider necessary, and the scheme as sanctioned by the Central Government shall come into force on such date as the Central Government may notify in this behalf in the Official Gazette:
Provided that different dates may be specified for different provisions of the scheme.
(4A) Every policyholder or shareholder or member of each of the insurers, before amalgamation, shall have the same interest in, or rights against the insurer resulting from amalgamation as he had in the company of which he was originally a policyholder or shareholder or member:
Provided that where the interests or rights of any shareholder or member are less than his interest in, or rights against, the original insurer, he shall be entitled to compensation, which shall be assessed by the Authority in such manner as may be specified by the regulations.
(4B) The compensation so assessed shall be paid to the shareholder or member by the insurance company resulting from such amalgamation.
(4C) Any member or shareholder aggrieved by the assessment of compensation made by the Authority under sub-section (4A) may within thirty days from the publication of such assessment prefer an appeal to the Securities Appellate Tribunal.]
(5) The sanction accorded by the Central Government under sub-section (4) shall be conclusive evidence that all the requirements of this section relating to amalgamation have been complied with and a copy of the sanctioned scheme certified in writing by an officer of the Central Government to be a true copy thereof shall, in all legal proceedings (whether in appeal or otherwise) be admitted as evidence to the same extent as the original scheme.
(6) The 3[Authority] may, in like manner, add to amend or vary any scheme made under this section.
(7) On and from the date of the coming into operation of the scheme or any provision thereof, the scheme or such provision shall be binding on the insurer or, as the case may be, on the transferee insurer and any other insurer concerned in the amalgamation and also on all the shareholders, policy-holders and other creditors and employees of each of those insurers and of transferee insurer, and on any other person having any right or liability in relation to any of those insurers or the transferee insurer.
(8) On and from such date as may be specified by the Central Government in this behalf, the properties and assets of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to, and vest in, and the liabilities of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to and become the liabilities of the transferee insurer.
(9) If any difficulty arises in giving effect to the provisions of the scheme, the Central Government may by order do anything not inconsistent with such provisions which appears to it necessary or expedient for the purpose of removing the difficulty.
(10) Copies of every scheme made under this section and of every order made under sub-section (9) shall be laid before each House of Parliament, as soon as may be, after the scheme has been sanctioned by the Central Government, or as the case may be, the order has been made.
(11) Nothing in this section shall be deemed to prevent the amalgamation with an insurer by a single scheme of several insurers.
(12) The provisions of this section and of any scheme made under it shall have effect notwithstanding anything to the contrary contained in any other provisions of this Act or in any other law or any agreement, award or other instrument for the time being in force.
(13) The provisions of section 37 shall not apply to an amalgamation given effect to under the provisions of this section.]1. Subs. by s. 30, and the First Schedule, ibid., for "Controller" (w.e.f. 19-4-2000).
2. Ins. by Act 62 of 1968, s. 17 (w.e.f. 1-6-1969).
3. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000).
4. Subs. by Act 5 of 2015, s 44, for sub-section (4) (w.e.f. 26-12-2014). | 1 | Power of Authority to prepare Scheme of Amalgamation (2) The scheme aforesaid may contain provisions for all or any of the following matters, namely: --
(a) the constitution, name and registered office, the capital, assets, powers, rights, interests, authorities and privileges, and the liabilities, duties and obligations of the transferee insurer;
(b) the transfer to the transferee insurer of the business, properties, assets and liabilities of the insurer on such terms and conditions as may be specified in the scheme;
(c) any change in the Board of Directors, or the appointment of a new Board of Directors of the transferee insurer and the authority by whom, the manner in which, and the other terms and conditions on which, such change or appointment shall be made, and, in the case of appointment of a new Board of Directors or of any director, the period for which such appointment shall be made;
(d) the alteration of the memorandum and articles of association of the transferee insurer for the purpose of altering the capital thereof or for such other purposes as may be necessary to give effect to the amalgamation;
(e) subject to the provisions of the scheme, the continuation by or against the transferee insurer, of any actions or proceedings pending against the insurer;
(f) the reduction of the interest or rights which the shareholders, policy-holders and other creditors have in or against the insurer before the amalgamation to such extent as the 2[Authority[ considers necessary in the public interest or in the interests of the shareholders, policy-holders and other creditors or for the maintenance of the business of the insurer;
(g) the payment in cash or otherwise to policy-holders, and other creditors in full satisfaction of their claim,--
(i) in respect of their interest or rights in or against the insurer before the amalgamation; or
(ii) where their interest or rights aforesaid in or against the insurer has or have been reduced under clause (f) in respect of such interest or rights as so reduced;
(h) the allotment to the shareholders of the insurer for shares held by them therein before the amalgamation whether their interest in such shares has been reduced under clause (f) or not of shares in the transferee insurer and where any shareholders claim payment in cash and not allotment of shares, or where it is not possible to allot shares to any shareholders, the payment in cash to thos |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18166§ionno=37A&orderno=72 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 37A | Power of Authority to prepare Scheme of Amalgamation | 2[37A. Power of 1[Authority] to prepare Scheme of Amalgamation. --(1) If the 1[Authority] is satisfied that--
(i) in the public interest; or
(ii) in the interests of the policy-holders; or
(iii) in order to secure the proper management of an insurer; or
(iv) in the interest of insurance business of the country as a whole,
it is necessary so to do, he may prepare a scheme for the amalgamation of that insurer with any other insurer (hereinafter referred to in this section as the transferee insurer):
Provided that no such scheme shall be prepared unless the other insurer has given his written consent to the proposal for such amalgamation.
(2) The scheme aforesaid may contain provisions for all or any of the following matters, namely: --
(a) the constitution, name and registered office, the capital, assets, powers, rights, interests, authorities and privileges, and the liabilities, duties and obligations of the transferee insurer;
(b) the transfer to the transferee insurer of the business, properties, assets and liabilities of the insurer on such terms and conditions as may be specified in the scheme;
(c) any change in the Board of Directors, or the appointment of a new Board of Directors of the transferee insurer and the authority by whom, the manner in which, and the other terms and conditions on which, such change or appointment shall be made, and, in the case of appointment of a new Board of Directors or of any director, the period for which such appointment shall be made;
(d) the alteration of the memorandum and articles of association of the transferee insurer for the purpose of altering the capital thereof or for such other purposes as may be necessary to give effect to the amalgamation;
(e) subject to the provisions of the scheme, the continuation by or against the transferee insurer, of any actions or proceedings pending against the insurer;
(f) the reduction of the interest or rights which the shareholders, policy-holders and other creditors have in or against the insurer before the amalgamation to such extent as the 2[Authority[ considers necessary in the public interest or in the interests of the shareholders, policy-holders and other creditors or for the maintenance of the business of the insurer;
(g) the payment in cash or otherwise to policy-holders, and other creditors in full satisfaction of their claim,--
(i) in respect of their interest or rights in or against the insurer before the amalgamation; or
(ii) where their interest or rights aforesaid in or against the insurer has or have been reduced under clause (f) in respect of such interest or rights as so reduced;
(h) the allotment to the shareholders of the insurer for shares held by them therein before the amalgamation whether their interest in such shares has been reduced under clause (f) or not of shares in the transferee insurer and where any shareholders claim payment in cash and not allotment of shares, or where it is not possible to allot shares to any shareholders, the payment in cash to those shareholders in full satisfaction of their claim--
(i) in respect of their interest in shares in the insurer before the amalgamation; or
(ii) where such interest has been reduced under clause (f) in respect of their interest in shares as so reduced;
(i) the continuance of the services of all the employees of the insurer (excepting such of them as not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947), are specifically mentioned in the scheme) in the transferee insurer at the same remuneration and on the same terms and conditions of service, which they were getting or, as the case may be, by which they were being governed, immediately before the date of the amalgamation:
Provided that the scheme shall contain a provision that the transferee insurer shall pay or grant not later than the expiry of the period of three years, from the date of the amalgamation, to the said employees the same remuneration and the same terms and conditions of service as are applicable to the other employees of corresponding rank or status, of the transferee insurer subject to the qualifications and experience of the said employees being the same as or equivalent to those of such other employees of the transferee insurer:
Provided further that if in any case any doubt or difference arises as to whether the qualification and experience of any of the said employees are the same as or equivalent to the qualifications and experience of the other employees of corresponding rank or status of the transferee insurer, the doubt or difference shall be referred to the Controller whose decision thereon shall be final;
(j) notwithstanding anything contained in clause (i) where any of the employees of the insurer not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947), are specifically mentioned in the scheme under clause (i) of where any employees of the insurer have by notice in writing given to the insurer or, as the case may be, the transferee insurer at any time before the expiry of one month next following the date on which the scheme is sanctioned by the Central Government, intimated their intention of not becoming employees of the transferee insurer, the payment to such employees of compensation, if any, to which they are entitled under the Industrial Disputes Act, 1947 (14 of 1947), and such pension, gratuity, provident fund, or other retirement benefits ordinarily admissible to them under the rules or authorisations of the insurer immediately before the date of the amalgamation;
(k) any other terms and conditions for the amalgamation of the insurer;
(l) such incidental, consequential and supplemental matters as are necessary to secure that the amalgamation shall be fully and effectively carried out.
(3)(a) A copy of the scheme prepared by the 3[Authority] shall be sent in draft to the insurer and also to the transferee insurer and any other insurer concerned in the amalgamation, for suggestions and objections, if any, within such period as the 3Authority] may specify for this purpose.
(b) The 3[Authority] may make such modifications, if any, in the draft scheme as he may consider necessary in the light of the suggestions and objections received from the insurer and also from the transferee insurer and any other insurer concerned in the amalgamation and from any shareholder, policyholder or other creditor of each of those insurers and the transferee insurer.
4[(4) The scheme shall thereafter be placed before the Central Government for its sanction and the Central Government may sanction the scheme without any modification or with such modifications as it may consider necessary, and the scheme as sanctioned by the Central Government shall come into force on such date as the Central Government may notify in this behalf in the Official Gazette:
Provided that different dates may be specified for different provisions of the scheme.
(4A) Every policyholder or shareholder or member of each of the insurers, before amalgamation, shall have the same interest in, or rights against the insurer resulting from amalgamation as he had in the company of which he was originally a policyholder or shareholder or member:
Provided that where the interests or rights of any shareholder or member are less than his interest in, or rights against, the original insurer, he shall be entitled to compensation, which shall be assessed by the Authority in such manner as may be specified by the regulations.
(4B) The compensation so assessed shall be paid to the shareholder or member by the insurance company resulting from such amalgamation.
(4C) Any member or shareholder aggrieved by the assessment of compensation made by the Authority under sub-section (4A) may within thirty days from the publication of such assessment prefer an appeal to the Securities Appellate Tribunal.]
(5) The sanction accorded by the Central Government under sub-section (4) shall be conclusive evidence that all the requirements of this section relating to amalgamation have been complied with and a copy of the sanctioned scheme certified in writing by an officer of the Central Government to be a true copy thereof shall, in all legal proceedings (whether in appeal or otherwise) be admitted as evidence to the same extent as the original scheme.
(6) The 3[Authority] may, in like manner, add to amend or vary any scheme made under this section.
(7) On and from the date of the coming into operation of the scheme or any provision thereof, the scheme or such provision shall be binding on the insurer or, as the case may be, on the transferee insurer and any other insurer concerned in the amalgamation and also on all the shareholders, policy-holders and other creditors and employees of each of those insurers and of transferee insurer, and on any other person having any right or liability in relation to any of those insurers or the transferee insurer.
(8) On and from such date as may be specified by the Central Government in this behalf, the properties and assets of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to, and vest in, and the liabilities of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to and become the liabilities of the transferee insurer.
(9) If any difficulty arises in giving effect to the provisions of the scheme, the Central Government may by order do anything not inconsistent with such provisions which appears to it necessary or expedient for the purpose of removing the difficulty.
(10) Copies of every scheme made under this section and of every order made under sub-section (9) shall be laid before each House of Parliament, as soon as may be, after the scheme has been sanctioned by the Central Government, or as the case may be, the order has been made.
(11) Nothing in this section shall be deemed to prevent the amalgamation with an insurer by a single scheme of several insurers.
(12) The provisions of this section and of any scheme made under it shall have effect notwithstanding anything to the contrary contained in any other provisions of this Act or in any other law or any agreement, award or other instrument for the time being in force.
(13) The provisions of section 37 shall not apply to an amalgamation given effect to under the provisions of this section.]1. Subs. by s. 30, and the First Schedule, ibid., for "Controller" (w.e.f. 19-4-2000).
2. Ins. by Act 62 of 1968, s. 17 (w.e.f. 1-6-1969).
3. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000).
4. Subs. by Act 5 of 2015, s 44, for sub-section (4) (w.e.f. 26-12-2014). | 2 | Power of Authority to prepare Scheme of Amalgamation e shareholders in full satisfaction of their claim--
(i) in respect of their interest in shares in the insurer before the amalgamation; or
(ii) where such interest has been reduced under clause (f) in respect of their interest in shares as so reduced;
(i) the continuance of the services of all the employees of the insurer (excepting such of them as not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947), are specifically mentioned in the scheme) in the transferee insurer at the same remuneration and on the same terms and conditions of service, which they were getting or, as the case may be, by which they were being governed, immediately before the date of the amalgamation:
Provided that the scheme shall contain a provision that the transferee insurer shall pay or grant not later than the expiry of the period of three years, from the date of the amalgamation, to the said employees the same remuneration and the same terms and conditions of service as are applicable to the other employees of corresponding rank or status, of the transferee insurer subject to the qualifications and experience of the said employees being the same as or equivalent to those of such other employees of the transferee insurer:
Provided further that if in any case any doubt or difference arises as to whether the qualification and experience of any of the said employees are the same as or equivalent to the qualifications and experience of the other employees of corresponding rank or status of the transferee insurer, the doubt or difference shall be referred to the Controller whose decision thereon shall be final;
(j) notwithstanding anything contained in clause (i) where any of the employees of the insurer not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947), are specifically mentioned in the scheme under clause (i) of where any employees of the insurer have by notice in writing given to the insurer or, as the case may be, the transferee insurer at any time before the expiry of one month next following the date on which the scheme is sanctioned by the Central Government, intimated their intention of not becoming employees of the transferee insurer, the payment to such employees of compensation, if any, to which they are entitled under the Industrial Disputes Act, 1947 (14 of 1947), and such pension, |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18166§ionno=37A&orderno=72 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 37A | Power of Authority to prepare Scheme of Amalgamation | 2[37A. Power of 1[Authority] to prepare Scheme of Amalgamation. --(1) If the 1[Authority] is satisfied that--
(i) in the public interest; or
(ii) in the interests of the policy-holders; or
(iii) in order to secure the proper management of an insurer; or
(iv) in the interest of insurance business of the country as a whole,
it is necessary so to do, he may prepare a scheme for the amalgamation of that insurer with any other insurer (hereinafter referred to in this section as the transferee insurer):
Provided that no such scheme shall be prepared unless the other insurer has given his written consent to the proposal for such amalgamation.
(2) The scheme aforesaid may contain provisions for all or any of the following matters, namely: --
(a) the constitution, name and registered office, the capital, assets, powers, rights, interests, authorities and privileges, and the liabilities, duties and obligations of the transferee insurer;
(b) the transfer to the transferee insurer of the business, properties, assets and liabilities of the insurer on such terms and conditions as may be specified in the scheme;
(c) any change in the Board of Directors, or the appointment of a new Board of Directors of the transferee insurer and the authority by whom, the manner in which, and the other terms and conditions on which, such change or appointment shall be made, and, in the case of appointment of a new Board of Directors or of any director, the period for which such appointment shall be made;
(d) the alteration of the memorandum and articles of association of the transferee insurer for the purpose of altering the capital thereof or for such other purposes as may be necessary to give effect to the amalgamation;
(e) subject to the provisions of the scheme, the continuation by or against the transferee insurer, of any actions or proceedings pending against the insurer;
(f) the reduction of the interest or rights which the shareholders, policy-holders and other creditors have in or against the insurer before the amalgamation to such extent as the 2[Authority[ considers necessary in the public interest or in the interests of the shareholders, policy-holders and other creditors or for the maintenance of the business of the insurer;
(g) the payment in cash or otherwise to policy-holders, and other creditors in full satisfaction of their claim,--
(i) in respect of their interest or rights in or against the insurer before the amalgamation; or
(ii) where their interest or rights aforesaid in or against the insurer has or have been reduced under clause (f) in respect of such interest or rights as so reduced;
(h) the allotment to the shareholders of the insurer for shares held by them therein before the amalgamation whether their interest in such shares has been reduced under clause (f) or not of shares in the transferee insurer and where any shareholders claim payment in cash and not allotment of shares, or where it is not possible to allot shares to any shareholders, the payment in cash to those shareholders in full satisfaction of their claim--
(i) in respect of their interest in shares in the insurer before the amalgamation; or
(ii) where such interest has been reduced under clause (f) in respect of their interest in shares as so reduced;
(i) the continuance of the services of all the employees of the insurer (excepting such of them as not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947), are specifically mentioned in the scheme) in the transferee insurer at the same remuneration and on the same terms and conditions of service, which they were getting or, as the case may be, by which they were being governed, immediately before the date of the amalgamation:
Provided that the scheme shall contain a provision that the transferee insurer shall pay or grant not later than the expiry of the period of three years, from the date of the amalgamation, to the said employees the same remuneration and the same terms and conditions of service as are applicable to the other employees of corresponding rank or status, of the transferee insurer subject to the qualifications and experience of the said employees being the same as or equivalent to those of such other employees of the transferee insurer:
Provided further that if in any case any doubt or difference arises as to whether the qualification and experience of any of the said employees are the same as or equivalent to the qualifications and experience of the other employees of corresponding rank or status of the transferee insurer, the doubt or difference shall be referred to the Controller whose decision thereon shall be final;
(j) notwithstanding anything contained in clause (i) where any of the employees of the insurer not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947), are specifically mentioned in the scheme under clause (i) of where any employees of the insurer have by notice in writing given to the insurer or, as the case may be, the transferee insurer at any time before the expiry of one month next following the date on which the scheme is sanctioned by the Central Government, intimated their intention of not becoming employees of the transferee insurer, the payment to such employees of compensation, if any, to which they are entitled under the Industrial Disputes Act, 1947 (14 of 1947), and such pension, gratuity, provident fund, or other retirement benefits ordinarily admissible to them under the rules or authorisations of the insurer immediately before the date of the amalgamation;
(k) any other terms and conditions for the amalgamation of the insurer;
(l) such incidental, consequential and supplemental matters as are necessary to secure that the amalgamation shall be fully and effectively carried out.
(3)(a) A copy of the scheme prepared by the 3[Authority] shall be sent in draft to the insurer and also to the transferee insurer and any other insurer concerned in the amalgamation, for suggestions and objections, if any, within such period as the 3Authority] may specify for this purpose.
(b) The 3[Authority] may make such modifications, if any, in the draft scheme as he may consider necessary in the light of the suggestions and objections received from the insurer and also from the transferee insurer and any other insurer concerned in the amalgamation and from any shareholder, policyholder or other creditor of each of those insurers and the transferee insurer.
4[(4) The scheme shall thereafter be placed before the Central Government for its sanction and the Central Government may sanction the scheme without any modification or with such modifications as it may consider necessary, and the scheme as sanctioned by the Central Government shall come into force on such date as the Central Government may notify in this behalf in the Official Gazette:
Provided that different dates may be specified for different provisions of the scheme.
(4A) Every policyholder or shareholder or member of each of the insurers, before amalgamation, shall have the same interest in, or rights against the insurer resulting from amalgamation as he had in the company of which he was originally a policyholder or shareholder or member:
Provided that where the interests or rights of any shareholder or member are less than his interest in, or rights against, the original insurer, he shall be entitled to compensation, which shall be assessed by the Authority in such manner as may be specified by the regulations.
(4B) The compensation so assessed shall be paid to the shareholder or member by the insurance company resulting from such amalgamation.
(4C) Any member or shareholder aggrieved by the assessment of compensation made by the Authority under sub-section (4A) may within thirty days from the publication of such assessment prefer an appeal to the Securities Appellate Tribunal.]
(5) The sanction accorded by the Central Government under sub-section (4) shall be conclusive evidence that all the requirements of this section relating to amalgamation have been complied with and a copy of the sanctioned scheme certified in writing by an officer of the Central Government to be a true copy thereof shall, in all legal proceedings (whether in appeal or otherwise) be admitted as evidence to the same extent as the original scheme.
(6) The 3[Authority] may, in like manner, add to amend or vary any scheme made under this section.
(7) On and from the date of the coming into operation of the scheme or any provision thereof, the scheme or such provision shall be binding on the insurer or, as the case may be, on the transferee insurer and any other insurer concerned in the amalgamation and also on all the shareholders, policy-holders and other creditors and employees of each of those insurers and of transferee insurer, and on any other person having any right or liability in relation to any of those insurers or the transferee insurer.
(8) On and from such date as may be specified by the Central Government in this behalf, the properties and assets of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to, and vest in, and the liabilities of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to and become the liabilities of the transferee insurer.
(9) If any difficulty arises in giving effect to the provisions of the scheme, the Central Government may by order do anything not inconsistent with such provisions which appears to it necessary or expedient for the purpose of removing the difficulty.
(10) Copies of every scheme made under this section and of every order made under sub-section (9) shall be laid before each House of Parliament, as soon as may be, after the scheme has been sanctioned by the Central Government, or as the case may be, the order has been made.
(11) Nothing in this section shall be deemed to prevent the amalgamation with an insurer by a single scheme of several insurers.
(12) The provisions of this section and of any scheme made under it shall have effect notwithstanding anything to the contrary contained in any other provisions of this Act or in any other law or any agreement, award or other instrument for the time being in force.
(13) The provisions of section 37 shall not apply to an amalgamation given effect to under the provisions of this section.]1. Subs. by s. 30, and the First Schedule, ibid., for "Controller" (w.e.f. 19-4-2000).
2. Ins. by Act 62 of 1968, s. 17 (w.e.f. 1-6-1969).
3. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000).
4. Subs. by Act 5 of 2015, s 44, for sub-section (4) (w.e.f. 26-12-2014). | 3 | Power of Authority to prepare Scheme of Amalgamation gratuity, provident fund, or other retirement benefits ordinarily admissible to them under the rules or authorisations of the insurer immediately before the date of the amalgamation;
(k) any other terms and conditions for the amalgamation of the insurer;
(l) such incidental, consequential and supplemental matters as are necessary to secure that the amalgamation shall be fully and effectively carried out. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18166§ionno=37A&orderno=72 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 37A | Power of Authority to prepare Scheme of Amalgamation | 2[37A. Power of 1[Authority] to prepare Scheme of Amalgamation. --(1) If the 1[Authority] is satisfied that--
(i) in the public interest; or
(ii) in the interests of the policy-holders; or
(iii) in order to secure the proper management of an insurer; or
(iv) in the interest of insurance business of the country as a whole,
it is necessary so to do, he may prepare a scheme for the amalgamation of that insurer with any other insurer (hereinafter referred to in this section as the transferee insurer):
Provided that no such scheme shall be prepared unless the other insurer has given his written consent to the proposal for such amalgamation.
(2) The scheme aforesaid may contain provisions for all or any of the following matters, namely: --
(a) the constitution, name and registered office, the capital, assets, powers, rights, interests, authorities and privileges, and the liabilities, duties and obligations of the transferee insurer;
(b) the transfer to the transferee insurer of the business, properties, assets and liabilities of the insurer on such terms and conditions as may be specified in the scheme;
(c) any change in the Board of Directors, or the appointment of a new Board of Directors of the transferee insurer and the authority by whom, the manner in which, and the other terms and conditions on which, such change or appointment shall be made, and, in the case of appointment of a new Board of Directors or of any director, the period for which such appointment shall be made;
(d) the alteration of the memorandum and articles of association of the transferee insurer for the purpose of altering the capital thereof or for such other purposes as may be necessary to give effect to the amalgamation;
(e) subject to the provisions of the scheme, the continuation by or against the transferee insurer, of any actions or proceedings pending against the insurer;
(f) the reduction of the interest or rights which the shareholders, policy-holders and other creditors have in or against the insurer before the amalgamation to such extent as the 2[Authority[ considers necessary in the public interest or in the interests of the shareholders, policy-holders and other creditors or for the maintenance of the business of the insurer;
(g) the payment in cash or otherwise to policy-holders, and other creditors in full satisfaction of their claim,--
(i) in respect of their interest or rights in or against the insurer before the amalgamation; or
(ii) where their interest or rights aforesaid in or against the insurer has or have been reduced under clause (f) in respect of such interest or rights as so reduced;
(h) the allotment to the shareholders of the insurer for shares held by them therein before the amalgamation whether their interest in such shares has been reduced under clause (f) or not of shares in the transferee insurer and where any shareholders claim payment in cash and not allotment of shares, or where it is not possible to allot shares to any shareholders, the payment in cash to those shareholders in full satisfaction of their claim--
(i) in respect of their interest in shares in the insurer before the amalgamation; or
(ii) where such interest has been reduced under clause (f) in respect of their interest in shares as so reduced;
(i) the continuance of the services of all the employees of the insurer (excepting such of them as not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947), are specifically mentioned in the scheme) in the transferee insurer at the same remuneration and on the same terms and conditions of service, which they were getting or, as the case may be, by which they were being governed, immediately before the date of the amalgamation:
Provided that the scheme shall contain a provision that the transferee insurer shall pay or grant not later than the expiry of the period of three years, from the date of the amalgamation, to the said employees the same remuneration and the same terms and conditions of service as are applicable to the other employees of corresponding rank or status, of the transferee insurer subject to the qualifications and experience of the said employees being the same as or equivalent to those of such other employees of the transferee insurer:
Provided further that if in any case any doubt or difference arises as to whether the qualification and experience of any of the said employees are the same as or equivalent to the qualifications and experience of the other employees of corresponding rank or status of the transferee insurer, the doubt or difference shall be referred to the Controller whose decision thereon shall be final;
(j) notwithstanding anything contained in clause (i) where any of the employees of the insurer not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947), are specifically mentioned in the scheme under clause (i) of where any employees of the insurer have by notice in writing given to the insurer or, as the case may be, the transferee insurer at any time before the expiry of one month next following the date on which the scheme is sanctioned by the Central Government, intimated their intention of not becoming employees of the transferee insurer, the payment to such employees of compensation, if any, to which they are entitled under the Industrial Disputes Act, 1947 (14 of 1947), and such pension, gratuity, provident fund, or other retirement benefits ordinarily admissible to them under the rules or authorisations of the insurer immediately before the date of the amalgamation;
(k) any other terms and conditions for the amalgamation of the insurer;
(l) such incidental, consequential and supplemental matters as are necessary to secure that the amalgamation shall be fully and effectively carried out.
(3)(a) A copy of the scheme prepared by the 3[Authority] shall be sent in draft to the insurer and also to the transferee insurer and any other insurer concerned in the amalgamation, for suggestions and objections, if any, within such period as the 3Authority] may specify for this purpose.
(b) The 3[Authority] may make such modifications, if any, in the draft scheme as he may consider necessary in the light of the suggestions and objections received from the insurer and also from the transferee insurer and any other insurer concerned in the amalgamation and from any shareholder, policyholder or other creditor of each of those insurers and the transferee insurer.
4[(4) The scheme shall thereafter be placed before the Central Government for its sanction and the Central Government may sanction the scheme without any modification or with such modifications as it may consider necessary, and the scheme as sanctioned by the Central Government shall come into force on such date as the Central Government may notify in this behalf in the Official Gazette:
Provided that different dates may be specified for different provisions of the scheme.
(4A) Every policyholder or shareholder or member of each of the insurers, before amalgamation, shall have the same interest in, or rights against the insurer resulting from amalgamation as he had in the company of which he was originally a policyholder or shareholder or member:
Provided that where the interests or rights of any shareholder or member are less than his interest in, or rights against, the original insurer, he shall be entitled to compensation, which shall be assessed by the Authority in such manner as may be specified by the regulations.
(4B) The compensation so assessed shall be paid to the shareholder or member by the insurance company resulting from such amalgamation.
(4C) Any member or shareholder aggrieved by the assessment of compensation made by the Authority under sub-section (4A) may within thirty days from the publication of such assessment prefer an appeal to the Securities Appellate Tribunal.]
(5) The sanction accorded by the Central Government under sub-section (4) shall be conclusive evidence that all the requirements of this section relating to amalgamation have been complied with and a copy of the sanctioned scheme certified in writing by an officer of the Central Government to be a true copy thereof shall, in all legal proceedings (whether in appeal or otherwise) be admitted as evidence to the same extent as the original scheme.
(6) The 3[Authority] may, in like manner, add to amend or vary any scheme made under this section.
(7) On and from the date of the coming into operation of the scheme or any provision thereof, the scheme or such provision shall be binding on the insurer or, as the case may be, on the transferee insurer and any other insurer concerned in the amalgamation and also on all the shareholders, policy-holders and other creditors and employees of each of those insurers and of transferee insurer, and on any other person having any right or liability in relation to any of those insurers or the transferee insurer.
(8) On and from such date as may be specified by the Central Government in this behalf, the properties and assets of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to, and vest in, and the liabilities of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to and become the liabilities of the transferee insurer.
(9) If any difficulty arises in giving effect to the provisions of the scheme, the Central Government may by order do anything not inconsistent with such provisions which appears to it necessary or expedient for the purpose of removing the difficulty.
(10) Copies of every scheme made under this section and of every order made under sub-section (9) shall be laid before each House of Parliament, as soon as may be, after the scheme has been sanctioned by the Central Government, or as the case may be, the order has been made.
(11) Nothing in this section shall be deemed to prevent the amalgamation with an insurer by a single scheme of several insurers.
(12) The provisions of this section and of any scheme made under it shall have effect notwithstanding anything to the contrary contained in any other provisions of this Act or in any other law or any agreement, award or other instrument for the time being in force.
(13) The provisions of section 37 shall not apply to an amalgamation given effect to under the provisions of this section.]1. Subs. by s. 30, and the First Schedule, ibid., for "Controller" (w.e.f. 19-4-2000).
2. Ins. by Act 62 of 1968, s. 17 (w.e.f. 1-6-1969).
3. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000).
4. Subs. by Act 5 of 2015, s 44, for sub-section (4) (w.e.f. 26-12-2014). | 4 | Power of Authority to prepare Scheme of Amalgamation |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18166§ionno=37A&orderno=72 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 37A | Power of Authority to prepare Scheme of Amalgamation | 2[37A. Power of 1[Authority] to prepare Scheme of Amalgamation. --(1) If the 1[Authority] is satisfied that--
(i) in the public interest; or
(ii) in the interests of the policy-holders; or
(iii) in order to secure the proper management of an insurer; or
(iv) in the interest of insurance business of the country as a whole,
it is necessary so to do, he may prepare a scheme for the amalgamation of that insurer with any other insurer (hereinafter referred to in this section as the transferee insurer):
Provided that no such scheme shall be prepared unless the other insurer has given his written consent to the proposal for such amalgamation.
(2) The scheme aforesaid may contain provisions for all or any of the following matters, namely: --
(a) the constitution, name and registered office, the capital, assets, powers, rights, interests, authorities and privileges, and the liabilities, duties and obligations of the transferee insurer;
(b) the transfer to the transferee insurer of the business, properties, assets and liabilities of the insurer on such terms and conditions as may be specified in the scheme;
(c) any change in the Board of Directors, or the appointment of a new Board of Directors of the transferee insurer and the authority by whom, the manner in which, and the other terms and conditions on which, such change or appointment shall be made, and, in the case of appointment of a new Board of Directors or of any director, the period for which such appointment shall be made;
(d) the alteration of the memorandum and articles of association of the transferee insurer for the purpose of altering the capital thereof or for such other purposes as may be necessary to give effect to the amalgamation;
(e) subject to the provisions of the scheme, the continuation by or against the transferee insurer, of any actions or proceedings pending against the insurer;
(f) the reduction of the interest or rights which the shareholders, policy-holders and other creditors have in or against the insurer before the amalgamation to such extent as the 2[Authority[ considers necessary in the public interest or in the interests of the shareholders, policy-holders and other creditors or for the maintenance of the business of the insurer;
(g) the payment in cash or otherwise to policy-holders, and other creditors in full satisfaction of their claim,--
(i) in respect of their interest or rights in or against the insurer before the amalgamation; or
(ii) where their interest or rights aforesaid in or against the insurer has or have been reduced under clause (f) in respect of such interest or rights as so reduced;
(h) the allotment to the shareholders of the insurer for shares held by them therein before the amalgamation whether their interest in such shares has been reduced under clause (f) or not of shares in the transferee insurer and where any shareholders claim payment in cash and not allotment of shares, or where it is not possible to allot shares to any shareholders, the payment in cash to those shareholders in full satisfaction of their claim--
(i) in respect of their interest in shares in the insurer before the amalgamation; or
(ii) where such interest has been reduced under clause (f) in respect of their interest in shares as so reduced;
(i) the continuance of the services of all the employees of the insurer (excepting such of them as not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947), are specifically mentioned in the scheme) in the transferee insurer at the same remuneration and on the same terms and conditions of service, which they were getting or, as the case may be, by which they were being governed, immediately before the date of the amalgamation:
Provided that the scheme shall contain a provision that the transferee insurer shall pay or grant not later than the expiry of the period of three years, from the date of the amalgamation, to the said employees the same remuneration and the same terms and conditions of service as are applicable to the other employees of corresponding rank or status, of the transferee insurer subject to the qualifications and experience of the said employees being the same as or equivalent to those of such other employees of the transferee insurer:
Provided further that if in any case any doubt or difference arises as to whether the qualification and experience of any of the said employees are the same as or equivalent to the qualifications and experience of the other employees of corresponding rank or status of the transferee insurer, the doubt or difference shall be referred to the Controller whose decision thereon shall be final;
(j) notwithstanding anything contained in clause (i) where any of the employees of the insurer not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947), are specifically mentioned in the scheme under clause (i) of where any employees of the insurer have by notice in writing given to the insurer or, as the case may be, the transferee insurer at any time before the expiry of one month next following the date on which the scheme is sanctioned by the Central Government, intimated their intention of not becoming employees of the transferee insurer, the payment to such employees of compensation, if any, to which they are entitled under the Industrial Disputes Act, 1947 (14 of 1947), and such pension, gratuity, provident fund, or other retirement benefits ordinarily admissible to them under the rules or authorisations of the insurer immediately before the date of the amalgamation;
(k) any other terms and conditions for the amalgamation of the insurer;
(l) such incidental, consequential and supplemental matters as are necessary to secure that the amalgamation shall be fully and effectively carried out.
(3)(a) A copy of the scheme prepared by the 3[Authority] shall be sent in draft to the insurer and also to the transferee insurer and any other insurer concerned in the amalgamation, for suggestions and objections, if any, within such period as the 3Authority] may specify for this purpose.
(b) The 3[Authority] may make such modifications, if any, in the draft scheme as he may consider necessary in the light of the suggestions and objections received from the insurer and also from the transferee insurer and any other insurer concerned in the amalgamation and from any shareholder, policyholder or other creditor of each of those insurers and the transferee insurer.
4[(4) The scheme shall thereafter be placed before the Central Government for its sanction and the Central Government may sanction the scheme without any modification or with such modifications as it may consider necessary, and the scheme as sanctioned by the Central Government shall come into force on such date as the Central Government may notify in this behalf in the Official Gazette:
Provided that different dates may be specified for different provisions of the scheme.
(4A) Every policyholder or shareholder or member of each of the insurers, before amalgamation, shall have the same interest in, or rights against the insurer resulting from amalgamation as he had in the company of which he was originally a policyholder or shareholder or member:
Provided that where the interests or rights of any shareholder or member are less than his interest in, or rights against, the original insurer, he shall be entitled to compensation, which shall be assessed by the Authority in such manner as may be specified by the regulations.
(4B) The compensation so assessed shall be paid to the shareholder or member by the insurance company resulting from such amalgamation.
(4C) Any member or shareholder aggrieved by the assessment of compensation made by the Authority under sub-section (4A) may within thirty days from the publication of such assessment prefer an appeal to the Securities Appellate Tribunal.]
(5) The sanction accorded by the Central Government under sub-section (4) shall be conclusive evidence that all the requirements of this section relating to amalgamation have been complied with and a copy of the sanctioned scheme certified in writing by an officer of the Central Government to be a true copy thereof shall, in all legal proceedings (whether in appeal or otherwise) be admitted as evidence to the same extent as the original scheme.
(6) The 3[Authority] may, in like manner, add to amend or vary any scheme made under this section.
(7) On and from the date of the coming into operation of the scheme or any provision thereof, the scheme or such provision shall be binding on the insurer or, as the case may be, on the transferee insurer and any other insurer concerned in the amalgamation and also on all the shareholders, policy-holders and other creditors and employees of each of those insurers and of transferee insurer, and on any other person having any right or liability in relation to any of those insurers or the transferee insurer.
(8) On and from such date as may be specified by the Central Government in this behalf, the properties and assets of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to, and vest in, and the liabilities of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to and become the liabilities of the transferee insurer.
(9) If any difficulty arises in giving effect to the provisions of the scheme, the Central Government may by order do anything not inconsistent with such provisions which appears to it necessary or expedient for the purpose of removing the difficulty.
(10) Copies of every scheme made under this section and of every order made under sub-section (9) shall be laid before each House of Parliament, as soon as may be, after the scheme has been sanctioned by the Central Government, or as the case may be, the order has been made.
(11) Nothing in this section shall be deemed to prevent the amalgamation with an insurer by a single scheme of several insurers.
(12) The provisions of this section and of any scheme made under it shall have effect notwithstanding anything to the contrary contained in any other provisions of this Act or in any other law or any agreement, award or other instrument for the time being in force.
(13) The provisions of section 37 shall not apply to an amalgamation given effect to under the provisions of this section.]1. Subs. by s. 30, and the First Schedule, ibid., for "Controller" (w.e.f. 19-4-2000).
2. Ins. by Act 62 of 1968, s. 17 (w.e.f. 1-6-1969).
3. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000).
4. Subs. by Act 5 of 2015, s 44, for sub-section (4) (w.e.f. 26-12-2014). | 5 | Power of Authority to prepare Scheme of Amalgamation |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18166§ionno=37A&orderno=72 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 37A | Power of Authority to prepare Scheme of Amalgamation | 2[37A. Power of 1[Authority] to prepare Scheme of Amalgamation. --(1) If the 1[Authority] is satisfied that--
(i) in the public interest; or
(ii) in the interests of the policy-holders; or
(iii) in order to secure the proper management of an insurer; or
(iv) in the interest of insurance business of the country as a whole,
it is necessary so to do, he may prepare a scheme for the amalgamation of that insurer with any other insurer (hereinafter referred to in this section as the transferee insurer):
Provided that no such scheme shall be prepared unless the other insurer has given his written consent to the proposal for such amalgamation.
(2) The scheme aforesaid may contain provisions for all or any of the following matters, namely: --
(a) the constitution, name and registered office, the capital, assets, powers, rights, interests, authorities and privileges, and the liabilities, duties and obligations of the transferee insurer;
(b) the transfer to the transferee insurer of the business, properties, assets and liabilities of the insurer on such terms and conditions as may be specified in the scheme;
(c) any change in the Board of Directors, or the appointment of a new Board of Directors of the transferee insurer and the authority by whom, the manner in which, and the other terms and conditions on which, such change or appointment shall be made, and, in the case of appointment of a new Board of Directors or of any director, the period for which such appointment shall be made;
(d) the alteration of the memorandum and articles of association of the transferee insurer for the purpose of altering the capital thereof or for such other purposes as may be necessary to give effect to the amalgamation;
(e) subject to the provisions of the scheme, the continuation by or against the transferee insurer, of any actions or proceedings pending against the insurer;
(f) the reduction of the interest or rights which the shareholders, policy-holders and other creditors have in or against the insurer before the amalgamation to such extent as the 2[Authority[ considers necessary in the public interest or in the interests of the shareholders, policy-holders and other creditors or for the maintenance of the business of the insurer;
(g) the payment in cash or otherwise to policy-holders, and other creditors in full satisfaction of their claim,--
(i) in respect of their interest or rights in or against the insurer before the amalgamation; or
(ii) where their interest or rights aforesaid in or against the insurer has or have been reduced under clause (f) in respect of such interest or rights as so reduced;
(h) the allotment to the shareholders of the insurer for shares held by them therein before the amalgamation whether their interest in such shares has been reduced under clause (f) or not of shares in the transferee insurer and where any shareholders claim payment in cash and not allotment of shares, or where it is not possible to allot shares to any shareholders, the payment in cash to those shareholders in full satisfaction of their claim--
(i) in respect of their interest in shares in the insurer before the amalgamation; or
(ii) where such interest has been reduced under clause (f) in respect of their interest in shares as so reduced;
(i) the continuance of the services of all the employees of the insurer (excepting such of them as not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947), are specifically mentioned in the scheme) in the transferee insurer at the same remuneration and on the same terms and conditions of service, which they were getting or, as the case may be, by which they were being governed, immediately before the date of the amalgamation:
Provided that the scheme shall contain a provision that the transferee insurer shall pay or grant not later than the expiry of the period of three years, from the date of the amalgamation, to the said employees the same remuneration and the same terms and conditions of service as are applicable to the other employees of corresponding rank or status, of the transferee insurer subject to the qualifications and experience of the said employees being the same as or equivalent to those of such other employees of the transferee insurer:
Provided further that if in any case any doubt or difference arises as to whether the qualification and experience of any of the said employees are the same as or equivalent to the qualifications and experience of the other employees of corresponding rank or status of the transferee insurer, the doubt or difference shall be referred to the Controller whose decision thereon shall be final;
(j) notwithstanding anything contained in clause (i) where any of the employees of the insurer not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947), are specifically mentioned in the scheme under clause (i) of where any employees of the insurer have by notice in writing given to the insurer or, as the case may be, the transferee insurer at any time before the expiry of one month next following the date on which the scheme is sanctioned by the Central Government, intimated their intention of not becoming employees of the transferee insurer, the payment to such employees of compensation, if any, to which they are entitled under the Industrial Disputes Act, 1947 (14 of 1947), and such pension, gratuity, provident fund, or other retirement benefits ordinarily admissible to them under the rules or authorisations of the insurer immediately before the date of the amalgamation;
(k) any other terms and conditions for the amalgamation of the insurer;
(l) such incidental, consequential and supplemental matters as are necessary to secure that the amalgamation shall be fully and effectively carried out.
(3)(a) A copy of the scheme prepared by the 3[Authority] shall be sent in draft to the insurer and also to the transferee insurer and any other insurer concerned in the amalgamation, for suggestions and objections, if any, within such period as the 3Authority] may specify for this purpose.
(b) The 3[Authority] may make such modifications, if any, in the draft scheme as he may consider necessary in the light of the suggestions and objections received from the insurer and also from the transferee insurer and any other insurer concerned in the amalgamation and from any shareholder, policyholder or other creditor of each of those insurers and the transferee insurer.
4[(4) The scheme shall thereafter be placed before the Central Government for its sanction and the Central Government may sanction the scheme without any modification or with such modifications as it may consider necessary, and the scheme as sanctioned by the Central Government shall come into force on such date as the Central Government may notify in this behalf in the Official Gazette:
Provided that different dates may be specified for different provisions of the scheme.
(4A) Every policyholder or shareholder or member of each of the insurers, before amalgamation, shall have the same interest in, or rights against the insurer resulting from amalgamation as he had in the company of which he was originally a policyholder or shareholder or member:
Provided that where the interests or rights of any shareholder or member are less than his interest in, or rights against, the original insurer, he shall be entitled to compensation, which shall be assessed by the Authority in such manner as may be specified by the regulations.
(4B) The compensation so assessed shall be paid to the shareholder or member by the insurance company resulting from such amalgamation.
(4C) Any member or shareholder aggrieved by the assessment of compensation made by the Authority under sub-section (4A) may within thirty days from the publication of such assessment prefer an appeal to the Securities Appellate Tribunal.]
(5) The sanction accorded by the Central Government under sub-section (4) shall be conclusive evidence that all the requirements of this section relating to amalgamation have been complied with and a copy of the sanctioned scheme certified in writing by an officer of the Central Government to be a true copy thereof shall, in all legal proceedings (whether in appeal or otherwise) be admitted as evidence to the same extent as the original scheme.
(6) The 3[Authority] may, in like manner, add to amend or vary any scheme made under this section.
(7) On and from the date of the coming into operation of the scheme or any provision thereof, the scheme or such provision shall be binding on the insurer or, as the case may be, on the transferee insurer and any other insurer concerned in the amalgamation and also on all the shareholders, policy-holders and other creditors and employees of each of those insurers and of transferee insurer, and on any other person having any right or liability in relation to any of those insurers or the transferee insurer.
(8) On and from such date as may be specified by the Central Government in this behalf, the properties and assets of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to, and vest in, and the liabilities of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to and become the liabilities of the transferee insurer.
(9) If any difficulty arises in giving effect to the provisions of the scheme, the Central Government may by order do anything not inconsistent with such provisions which appears to it necessary or expedient for the purpose of removing the difficulty.
(10) Copies of every scheme made under this section and of every order made under sub-section (9) shall be laid before each House of Parliament, as soon as may be, after the scheme has been sanctioned by the Central Government, or as the case may be, the order has been made.
(11) Nothing in this section shall be deemed to prevent the amalgamation with an insurer by a single scheme of several insurers.
(12) The provisions of this section and of any scheme made under it shall have effect notwithstanding anything to the contrary contained in any other provisions of this Act or in any other law or any agreement, award or other instrument for the time being in force.
(13) The provisions of section 37 shall not apply to an amalgamation given effect to under the provisions of this section.]1. Subs. by s. 30, and the First Schedule, ibid., for "Controller" (w.e.f. 19-4-2000).
2. Ins. by Act 62 of 1968, s. 17 (w.e.f. 1-6-1969).
3. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000).
4. Subs. by Act 5 of 2015, s 44, for sub-section (4) (w.e.f. 26-12-2014). | 6 | Power of Authority to prepare Scheme of Amalgamation (3)(a) A copy of the scheme prepared by the 3[Authority] shall be sent in draft to the insurer and also to the transferee insurer and any other insurer concerned in the amalgamation, for suggestions and objections, if any, within such period as the 3Authority] may specify for this purpose.(b) The 3[Authority] may make such modifications, if any, in the draft scheme as he may consider necessary in the light of the suggestions and objections received from the insurer and also from the transferee insurer and any other insurer concerned in the amalgamation and from any shareholder, policyholder or other creditor of each of those insurers and the transferee insurer.4[(4) The scheme shall thereafter be placed before the Central Government for its sanction and the Central Government may sanction the scheme without any modification or with such modifications as it may consider necessary, and the scheme as sanctioned by the Central Government shall come into force on such date as the Central Government may notify in this behalf in the Official Gazette:
Provided that different dates may be specified for different provisions of the scheme.(4A) Every policyholder or shareholder or member of each of the insurers, before amalgamation, shall have the same interest in, or rights against the insurer resulting from amalgamation as he had in the company of which he was originally a policyholder or shareholder or member:
Provided that where the interests or rights of any shareholder or member are less than his interest in, or rights against, the original insurer, he shall be entitled to compensation, which shall be assessed by the Authority in such manner as may be specified by the regulations.(4B) The compensation so assessed shall be paid to the shareholder or member by the insurance company resulting from such amalgamation.(4C) Any member or shareholder aggrieved by the assessment of compensation made by the Authority under sub-section (4A) may within thirty days from the publication of such assessment prefer an appeal to the Securities Appellate Tribunal.]
(5) The sanction accorded by the Central Government under sub-section (4) shall be conclusive evidence that all the requirements of this section relating to amalgamation have been complied with and a copy of the sanctioned scheme certified in writing by an officer of the Central Government to be a true copy thereof shall, in all legal proceedings (whether in appeal or otherwise) be admitted as evidence to the same extent as the original scheme.(6) The 3[Authority] may, in like manner, add to amend or vary any scheme made under this section. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18166§ionno=37A&orderno=72 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 37A | Power of Authority to prepare Scheme of Amalgamation | 2[37A. Power of 1[Authority] to prepare Scheme of Amalgamation. --(1) If the 1[Authority] is satisfied that--
(i) in the public interest; or
(ii) in the interests of the policy-holders; or
(iii) in order to secure the proper management of an insurer; or
(iv) in the interest of insurance business of the country as a whole,
it is necessary so to do, he may prepare a scheme for the amalgamation of that insurer with any other insurer (hereinafter referred to in this section as the transferee insurer):
Provided that no such scheme shall be prepared unless the other insurer has given his written consent to the proposal for such amalgamation.
(2) The scheme aforesaid may contain provisions for all or any of the following matters, namely: --
(a) the constitution, name and registered office, the capital, assets, powers, rights, interests, authorities and privileges, and the liabilities, duties and obligations of the transferee insurer;
(b) the transfer to the transferee insurer of the business, properties, assets and liabilities of the insurer on such terms and conditions as may be specified in the scheme;
(c) any change in the Board of Directors, or the appointment of a new Board of Directors of the transferee insurer and the authority by whom, the manner in which, and the other terms and conditions on which, such change or appointment shall be made, and, in the case of appointment of a new Board of Directors or of any director, the period for which such appointment shall be made;
(d) the alteration of the memorandum and articles of association of the transferee insurer for the purpose of altering the capital thereof or for such other purposes as may be necessary to give effect to the amalgamation;
(e) subject to the provisions of the scheme, the continuation by or against the transferee insurer, of any actions or proceedings pending against the insurer;
(f) the reduction of the interest or rights which the shareholders, policy-holders and other creditors have in or against the insurer before the amalgamation to such extent as the 2[Authority[ considers necessary in the public interest or in the interests of the shareholders, policy-holders and other creditors or for the maintenance of the business of the insurer;
(g) the payment in cash or otherwise to policy-holders, and other creditors in full satisfaction of their claim,--
(i) in respect of their interest or rights in or against the insurer before the amalgamation; or
(ii) where their interest or rights aforesaid in or against the insurer has or have been reduced under clause (f) in respect of such interest or rights as so reduced;
(h) the allotment to the shareholders of the insurer for shares held by them therein before the amalgamation whether their interest in such shares has been reduced under clause (f) or not of shares in the transferee insurer and where any shareholders claim payment in cash and not allotment of shares, or where it is not possible to allot shares to any shareholders, the payment in cash to those shareholders in full satisfaction of their claim--
(i) in respect of their interest in shares in the insurer before the amalgamation; or
(ii) where such interest has been reduced under clause (f) in respect of their interest in shares as so reduced;
(i) the continuance of the services of all the employees of the insurer (excepting such of them as not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947), are specifically mentioned in the scheme) in the transferee insurer at the same remuneration and on the same terms and conditions of service, which they were getting or, as the case may be, by which they were being governed, immediately before the date of the amalgamation:
Provided that the scheme shall contain a provision that the transferee insurer shall pay or grant not later than the expiry of the period of three years, from the date of the amalgamation, to the said employees the same remuneration and the same terms and conditions of service as are applicable to the other employees of corresponding rank or status, of the transferee insurer subject to the qualifications and experience of the said employees being the same as or equivalent to those of such other employees of the transferee insurer:
Provided further that if in any case any doubt or difference arises as to whether the qualification and experience of any of the said employees are the same as or equivalent to the qualifications and experience of the other employees of corresponding rank or status of the transferee insurer, the doubt or difference shall be referred to the Controller whose decision thereon shall be final;
(j) notwithstanding anything contained in clause (i) where any of the employees of the insurer not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947), are specifically mentioned in the scheme under clause (i) of where any employees of the insurer have by notice in writing given to the insurer or, as the case may be, the transferee insurer at any time before the expiry of one month next following the date on which the scheme is sanctioned by the Central Government, intimated their intention of not becoming employees of the transferee insurer, the payment to such employees of compensation, if any, to which they are entitled under the Industrial Disputes Act, 1947 (14 of 1947), and such pension, gratuity, provident fund, or other retirement benefits ordinarily admissible to them under the rules or authorisations of the insurer immediately before the date of the amalgamation;
(k) any other terms and conditions for the amalgamation of the insurer;
(l) such incidental, consequential and supplemental matters as are necessary to secure that the amalgamation shall be fully and effectively carried out.
(3)(a) A copy of the scheme prepared by the 3[Authority] shall be sent in draft to the insurer and also to the transferee insurer and any other insurer concerned in the amalgamation, for suggestions and objections, if any, within such period as the 3Authority] may specify for this purpose.
(b) The 3[Authority] may make such modifications, if any, in the draft scheme as he may consider necessary in the light of the suggestions and objections received from the insurer and also from the transferee insurer and any other insurer concerned in the amalgamation and from any shareholder, policyholder or other creditor of each of those insurers and the transferee insurer.
4[(4) The scheme shall thereafter be placed before the Central Government for its sanction and the Central Government may sanction the scheme without any modification or with such modifications as it may consider necessary, and the scheme as sanctioned by the Central Government shall come into force on such date as the Central Government may notify in this behalf in the Official Gazette:
Provided that different dates may be specified for different provisions of the scheme.
(4A) Every policyholder or shareholder or member of each of the insurers, before amalgamation, shall have the same interest in, or rights against the insurer resulting from amalgamation as he had in the company of which he was originally a policyholder or shareholder or member:
Provided that where the interests or rights of any shareholder or member are less than his interest in, or rights against, the original insurer, he shall be entitled to compensation, which shall be assessed by the Authority in such manner as may be specified by the regulations.
(4B) The compensation so assessed shall be paid to the shareholder or member by the insurance company resulting from such amalgamation.
(4C) Any member or shareholder aggrieved by the assessment of compensation made by the Authority under sub-section (4A) may within thirty days from the publication of such assessment prefer an appeal to the Securities Appellate Tribunal.]
(5) The sanction accorded by the Central Government under sub-section (4) shall be conclusive evidence that all the requirements of this section relating to amalgamation have been complied with and a copy of the sanctioned scheme certified in writing by an officer of the Central Government to be a true copy thereof shall, in all legal proceedings (whether in appeal or otherwise) be admitted as evidence to the same extent as the original scheme.
(6) The 3[Authority] may, in like manner, add to amend or vary any scheme made under this section.
(7) On and from the date of the coming into operation of the scheme or any provision thereof, the scheme or such provision shall be binding on the insurer or, as the case may be, on the transferee insurer and any other insurer concerned in the amalgamation and also on all the shareholders, policy-holders and other creditors and employees of each of those insurers and of transferee insurer, and on any other person having any right or liability in relation to any of those insurers or the transferee insurer.
(8) On and from such date as may be specified by the Central Government in this behalf, the properties and assets of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to, and vest in, and the liabilities of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to and become the liabilities of the transferee insurer.
(9) If any difficulty arises in giving effect to the provisions of the scheme, the Central Government may by order do anything not inconsistent with such provisions which appears to it necessary or expedient for the purpose of removing the difficulty.
(10) Copies of every scheme made under this section and of every order made under sub-section (9) shall be laid before each House of Parliament, as soon as may be, after the scheme has been sanctioned by the Central Government, or as the case may be, the order has been made.
(11) Nothing in this section shall be deemed to prevent the amalgamation with an insurer by a single scheme of several insurers.
(12) The provisions of this section and of any scheme made under it shall have effect notwithstanding anything to the contrary contained in any other provisions of this Act or in any other law or any agreement, award or other instrument for the time being in force.
(13) The provisions of section 37 shall not apply to an amalgamation given effect to under the provisions of this section.]1. Subs. by s. 30, and the First Schedule, ibid., for "Controller" (w.e.f. 19-4-2000).
2. Ins. by Act 62 of 1968, s. 17 (w.e.f. 1-6-1969).
3. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000).
4. Subs. by Act 5 of 2015, s 44, for sub-section (4) (w.e.f. 26-12-2014). | 7 | Power of Authority to prepare Scheme of Amalgamation (7) On and from the date of the coming into operation of the scheme or any provision thereof, the scheme or such provision shall be binding on the insurer or, as the case may be, on the transferee insurer and any other insurer concerned in the amalgamation and also on all the shareholders, policy-holders and other creditors and employees of each of those insurers and of transferee insurer, and on any other person having any right or liability in relation to any of those insurers or the transferee insurer. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18166§ionno=37A&orderno=72 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 37A | Power of Authority to prepare Scheme of Amalgamation | 2[37A. Power of 1[Authority] to prepare Scheme of Amalgamation. --(1) If the 1[Authority] is satisfied that--
(i) in the public interest; or
(ii) in the interests of the policy-holders; or
(iii) in order to secure the proper management of an insurer; or
(iv) in the interest of insurance business of the country as a whole,
it is necessary so to do, he may prepare a scheme for the amalgamation of that insurer with any other insurer (hereinafter referred to in this section as the transferee insurer):
Provided that no such scheme shall be prepared unless the other insurer has given his written consent to the proposal for such amalgamation.
(2) The scheme aforesaid may contain provisions for all or any of the following matters, namely: --
(a) the constitution, name and registered office, the capital, assets, powers, rights, interests, authorities and privileges, and the liabilities, duties and obligations of the transferee insurer;
(b) the transfer to the transferee insurer of the business, properties, assets and liabilities of the insurer on such terms and conditions as may be specified in the scheme;
(c) any change in the Board of Directors, or the appointment of a new Board of Directors of the transferee insurer and the authority by whom, the manner in which, and the other terms and conditions on which, such change or appointment shall be made, and, in the case of appointment of a new Board of Directors or of any director, the period for which such appointment shall be made;
(d) the alteration of the memorandum and articles of association of the transferee insurer for the purpose of altering the capital thereof or for such other purposes as may be necessary to give effect to the amalgamation;
(e) subject to the provisions of the scheme, the continuation by or against the transferee insurer, of any actions or proceedings pending against the insurer;
(f) the reduction of the interest or rights which the shareholders, policy-holders and other creditors have in or against the insurer before the amalgamation to such extent as the 2[Authority[ considers necessary in the public interest or in the interests of the shareholders, policy-holders and other creditors or for the maintenance of the business of the insurer;
(g) the payment in cash or otherwise to policy-holders, and other creditors in full satisfaction of their claim,--
(i) in respect of their interest or rights in or against the insurer before the amalgamation; or
(ii) where their interest or rights aforesaid in or against the insurer has or have been reduced under clause (f) in respect of such interest or rights as so reduced;
(h) the allotment to the shareholders of the insurer for shares held by them therein before the amalgamation whether their interest in such shares has been reduced under clause (f) or not of shares in the transferee insurer and where any shareholders claim payment in cash and not allotment of shares, or where it is not possible to allot shares to any shareholders, the payment in cash to those shareholders in full satisfaction of their claim--
(i) in respect of their interest in shares in the insurer before the amalgamation; or
(ii) where such interest has been reduced under clause (f) in respect of their interest in shares as so reduced;
(i) the continuance of the services of all the employees of the insurer (excepting such of them as not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947), are specifically mentioned in the scheme) in the transferee insurer at the same remuneration and on the same terms and conditions of service, which they were getting or, as the case may be, by which they were being governed, immediately before the date of the amalgamation:
Provided that the scheme shall contain a provision that the transferee insurer shall pay or grant not later than the expiry of the period of three years, from the date of the amalgamation, to the said employees the same remuneration and the same terms and conditions of service as are applicable to the other employees of corresponding rank or status, of the transferee insurer subject to the qualifications and experience of the said employees being the same as or equivalent to those of such other employees of the transferee insurer:
Provided further that if in any case any doubt or difference arises as to whether the qualification and experience of any of the said employees are the same as or equivalent to the qualifications and experience of the other employees of corresponding rank or status of the transferee insurer, the doubt or difference shall be referred to the Controller whose decision thereon shall be final;
(j) notwithstanding anything contained in clause (i) where any of the employees of the insurer not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947), are specifically mentioned in the scheme under clause (i) of where any employees of the insurer have by notice in writing given to the insurer or, as the case may be, the transferee insurer at any time before the expiry of one month next following the date on which the scheme is sanctioned by the Central Government, intimated their intention of not becoming employees of the transferee insurer, the payment to such employees of compensation, if any, to which they are entitled under the Industrial Disputes Act, 1947 (14 of 1947), and such pension, gratuity, provident fund, or other retirement benefits ordinarily admissible to them under the rules or authorisations of the insurer immediately before the date of the amalgamation;
(k) any other terms and conditions for the amalgamation of the insurer;
(l) such incidental, consequential and supplemental matters as are necessary to secure that the amalgamation shall be fully and effectively carried out.
(3)(a) A copy of the scheme prepared by the 3[Authority] shall be sent in draft to the insurer and also to the transferee insurer and any other insurer concerned in the amalgamation, for suggestions and objections, if any, within such period as the 3Authority] may specify for this purpose.
(b) The 3[Authority] may make such modifications, if any, in the draft scheme as he may consider necessary in the light of the suggestions and objections received from the insurer and also from the transferee insurer and any other insurer concerned in the amalgamation and from any shareholder, policyholder or other creditor of each of those insurers and the transferee insurer.
4[(4) The scheme shall thereafter be placed before the Central Government for its sanction and the Central Government may sanction the scheme without any modification or with such modifications as it may consider necessary, and the scheme as sanctioned by the Central Government shall come into force on such date as the Central Government may notify in this behalf in the Official Gazette:
Provided that different dates may be specified for different provisions of the scheme.
(4A) Every policyholder or shareholder or member of each of the insurers, before amalgamation, shall have the same interest in, or rights against the insurer resulting from amalgamation as he had in the company of which he was originally a policyholder or shareholder or member:
Provided that where the interests or rights of any shareholder or member are less than his interest in, or rights against, the original insurer, he shall be entitled to compensation, which shall be assessed by the Authority in such manner as may be specified by the regulations.
(4B) The compensation so assessed shall be paid to the shareholder or member by the insurance company resulting from such amalgamation.
(4C) Any member or shareholder aggrieved by the assessment of compensation made by the Authority under sub-section (4A) may within thirty days from the publication of such assessment prefer an appeal to the Securities Appellate Tribunal.]
(5) The sanction accorded by the Central Government under sub-section (4) shall be conclusive evidence that all the requirements of this section relating to amalgamation have been complied with and a copy of the sanctioned scheme certified in writing by an officer of the Central Government to be a true copy thereof shall, in all legal proceedings (whether in appeal or otherwise) be admitted as evidence to the same extent as the original scheme.
(6) The 3[Authority] may, in like manner, add to amend or vary any scheme made under this section.
(7) On and from the date of the coming into operation of the scheme or any provision thereof, the scheme or such provision shall be binding on the insurer or, as the case may be, on the transferee insurer and any other insurer concerned in the amalgamation and also on all the shareholders, policy-holders and other creditors and employees of each of those insurers and of transferee insurer, and on any other person having any right or liability in relation to any of those insurers or the transferee insurer.
(8) On and from such date as may be specified by the Central Government in this behalf, the properties and assets of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to, and vest in, and the liabilities of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to and become the liabilities of the transferee insurer.
(9) If any difficulty arises in giving effect to the provisions of the scheme, the Central Government may by order do anything not inconsistent with such provisions which appears to it necessary or expedient for the purpose of removing the difficulty.
(10) Copies of every scheme made under this section and of every order made under sub-section (9) shall be laid before each House of Parliament, as soon as may be, after the scheme has been sanctioned by the Central Government, or as the case may be, the order has been made.
(11) Nothing in this section shall be deemed to prevent the amalgamation with an insurer by a single scheme of several insurers.
(12) The provisions of this section and of any scheme made under it shall have effect notwithstanding anything to the contrary contained in any other provisions of this Act or in any other law or any agreement, award or other instrument for the time being in force.
(13) The provisions of section 37 shall not apply to an amalgamation given effect to under the provisions of this section.]1. Subs. by s. 30, and the First Schedule, ibid., for "Controller" (w.e.f. 19-4-2000).
2. Ins. by Act 62 of 1968, s. 17 (w.e.f. 1-6-1969).
3. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000).
4. Subs. by Act 5 of 2015, s 44, for sub-section (4) (w.e.f. 26-12-2014). | 8 | Power of Authority to prepare Scheme of Amalgamation |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18166§ionno=37A&orderno=72 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 37A | Power of Authority to prepare Scheme of Amalgamation | 2[37A. Power of 1[Authority] to prepare Scheme of Amalgamation. --(1) If the 1[Authority] is satisfied that--
(i) in the public interest; or
(ii) in the interests of the policy-holders; or
(iii) in order to secure the proper management of an insurer; or
(iv) in the interest of insurance business of the country as a whole,
it is necessary so to do, he may prepare a scheme for the amalgamation of that insurer with any other insurer (hereinafter referred to in this section as the transferee insurer):
Provided that no such scheme shall be prepared unless the other insurer has given his written consent to the proposal for such amalgamation.
(2) The scheme aforesaid may contain provisions for all or any of the following matters, namely: --
(a) the constitution, name and registered office, the capital, assets, powers, rights, interests, authorities and privileges, and the liabilities, duties and obligations of the transferee insurer;
(b) the transfer to the transferee insurer of the business, properties, assets and liabilities of the insurer on such terms and conditions as may be specified in the scheme;
(c) any change in the Board of Directors, or the appointment of a new Board of Directors of the transferee insurer and the authority by whom, the manner in which, and the other terms and conditions on which, such change or appointment shall be made, and, in the case of appointment of a new Board of Directors or of any director, the period for which such appointment shall be made;
(d) the alteration of the memorandum and articles of association of the transferee insurer for the purpose of altering the capital thereof or for such other purposes as may be necessary to give effect to the amalgamation;
(e) subject to the provisions of the scheme, the continuation by or against the transferee insurer, of any actions or proceedings pending against the insurer;
(f) the reduction of the interest or rights which the shareholders, policy-holders and other creditors have in or against the insurer before the amalgamation to such extent as the 2[Authority[ considers necessary in the public interest or in the interests of the shareholders, policy-holders and other creditors or for the maintenance of the business of the insurer;
(g) the payment in cash or otherwise to policy-holders, and other creditors in full satisfaction of their claim,--
(i) in respect of their interest or rights in or against the insurer before the amalgamation; or
(ii) where their interest or rights aforesaid in or against the insurer has or have been reduced under clause (f) in respect of such interest or rights as so reduced;
(h) the allotment to the shareholders of the insurer for shares held by them therein before the amalgamation whether their interest in such shares has been reduced under clause (f) or not of shares in the transferee insurer and where any shareholders claim payment in cash and not allotment of shares, or where it is not possible to allot shares to any shareholders, the payment in cash to those shareholders in full satisfaction of their claim--
(i) in respect of their interest in shares in the insurer before the amalgamation; or
(ii) where such interest has been reduced under clause (f) in respect of their interest in shares as so reduced;
(i) the continuance of the services of all the employees of the insurer (excepting such of them as not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947), are specifically mentioned in the scheme) in the transferee insurer at the same remuneration and on the same terms and conditions of service, which they were getting or, as the case may be, by which they were being governed, immediately before the date of the amalgamation:
Provided that the scheme shall contain a provision that the transferee insurer shall pay or grant not later than the expiry of the period of three years, from the date of the amalgamation, to the said employees the same remuneration and the same terms and conditions of service as are applicable to the other employees of corresponding rank or status, of the transferee insurer subject to the qualifications and experience of the said employees being the same as or equivalent to those of such other employees of the transferee insurer:
Provided further that if in any case any doubt or difference arises as to whether the qualification and experience of any of the said employees are the same as or equivalent to the qualifications and experience of the other employees of corresponding rank or status of the transferee insurer, the doubt or difference shall be referred to the Controller whose decision thereon shall be final;
(j) notwithstanding anything contained in clause (i) where any of the employees of the insurer not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947), are specifically mentioned in the scheme under clause (i) of where any employees of the insurer have by notice in writing given to the insurer or, as the case may be, the transferee insurer at any time before the expiry of one month next following the date on which the scheme is sanctioned by the Central Government, intimated their intention of not becoming employees of the transferee insurer, the payment to such employees of compensation, if any, to which they are entitled under the Industrial Disputes Act, 1947 (14 of 1947), and such pension, gratuity, provident fund, or other retirement benefits ordinarily admissible to them under the rules or authorisations of the insurer immediately before the date of the amalgamation;
(k) any other terms and conditions for the amalgamation of the insurer;
(l) such incidental, consequential and supplemental matters as are necessary to secure that the amalgamation shall be fully and effectively carried out.
(3)(a) A copy of the scheme prepared by the 3[Authority] shall be sent in draft to the insurer and also to the transferee insurer and any other insurer concerned in the amalgamation, for suggestions and objections, if any, within such period as the 3Authority] may specify for this purpose.
(b) The 3[Authority] may make such modifications, if any, in the draft scheme as he may consider necessary in the light of the suggestions and objections received from the insurer and also from the transferee insurer and any other insurer concerned in the amalgamation and from any shareholder, policyholder or other creditor of each of those insurers and the transferee insurer.
4[(4) The scheme shall thereafter be placed before the Central Government for its sanction and the Central Government may sanction the scheme without any modification or with such modifications as it may consider necessary, and the scheme as sanctioned by the Central Government shall come into force on such date as the Central Government may notify in this behalf in the Official Gazette:
Provided that different dates may be specified for different provisions of the scheme.
(4A) Every policyholder or shareholder or member of each of the insurers, before amalgamation, shall have the same interest in, or rights against the insurer resulting from amalgamation as he had in the company of which he was originally a policyholder or shareholder or member:
Provided that where the interests or rights of any shareholder or member are less than his interest in, or rights against, the original insurer, he shall be entitled to compensation, which shall be assessed by the Authority in such manner as may be specified by the regulations.
(4B) The compensation so assessed shall be paid to the shareholder or member by the insurance company resulting from such amalgamation.
(4C) Any member or shareholder aggrieved by the assessment of compensation made by the Authority under sub-section (4A) may within thirty days from the publication of such assessment prefer an appeal to the Securities Appellate Tribunal.]
(5) The sanction accorded by the Central Government under sub-section (4) shall be conclusive evidence that all the requirements of this section relating to amalgamation have been complied with and a copy of the sanctioned scheme certified in writing by an officer of the Central Government to be a true copy thereof shall, in all legal proceedings (whether in appeal or otherwise) be admitted as evidence to the same extent as the original scheme.
(6) The 3[Authority] may, in like manner, add to amend or vary any scheme made under this section.
(7) On and from the date of the coming into operation of the scheme or any provision thereof, the scheme or such provision shall be binding on the insurer or, as the case may be, on the transferee insurer and any other insurer concerned in the amalgamation and also on all the shareholders, policy-holders and other creditors and employees of each of those insurers and of transferee insurer, and on any other person having any right or liability in relation to any of those insurers or the transferee insurer.
(8) On and from such date as may be specified by the Central Government in this behalf, the properties and assets of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to, and vest in, and the liabilities of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to and become the liabilities of the transferee insurer.
(9) If any difficulty arises in giving effect to the provisions of the scheme, the Central Government may by order do anything not inconsistent with such provisions which appears to it necessary or expedient for the purpose of removing the difficulty.
(10) Copies of every scheme made under this section and of every order made under sub-section (9) shall be laid before each House of Parliament, as soon as may be, after the scheme has been sanctioned by the Central Government, or as the case may be, the order has been made.
(11) Nothing in this section shall be deemed to prevent the amalgamation with an insurer by a single scheme of several insurers.
(12) The provisions of this section and of any scheme made under it shall have effect notwithstanding anything to the contrary contained in any other provisions of this Act or in any other law or any agreement, award or other instrument for the time being in force.
(13) The provisions of section 37 shall not apply to an amalgamation given effect to under the provisions of this section.]1. Subs. by s. 30, and the First Schedule, ibid., for "Controller" (w.e.f. 19-4-2000).
2. Ins. by Act 62 of 1968, s. 17 (w.e.f. 1-6-1969).
3. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000).
4. Subs. by Act 5 of 2015, s 44, for sub-section (4) (w.e.f. 26-12-2014). | 9 | Power of Authority to prepare Scheme of Amalgamation |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18166§ionno=37A&orderno=72 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 37A | Power of Authority to prepare Scheme of Amalgamation | 2[37A. Power of 1[Authority] to prepare Scheme of Amalgamation. --(1) If the 1[Authority] is satisfied that--
(i) in the public interest; or
(ii) in the interests of the policy-holders; or
(iii) in order to secure the proper management of an insurer; or
(iv) in the interest of insurance business of the country as a whole,
it is necessary so to do, he may prepare a scheme for the amalgamation of that insurer with any other insurer (hereinafter referred to in this section as the transferee insurer):
Provided that no such scheme shall be prepared unless the other insurer has given his written consent to the proposal for such amalgamation.
(2) The scheme aforesaid may contain provisions for all or any of the following matters, namely: --
(a) the constitution, name and registered office, the capital, assets, powers, rights, interests, authorities and privileges, and the liabilities, duties and obligations of the transferee insurer;
(b) the transfer to the transferee insurer of the business, properties, assets and liabilities of the insurer on such terms and conditions as may be specified in the scheme;
(c) any change in the Board of Directors, or the appointment of a new Board of Directors of the transferee insurer and the authority by whom, the manner in which, and the other terms and conditions on which, such change or appointment shall be made, and, in the case of appointment of a new Board of Directors or of any director, the period for which such appointment shall be made;
(d) the alteration of the memorandum and articles of association of the transferee insurer for the purpose of altering the capital thereof or for such other purposes as may be necessary to give effect to the amalgamation;
(e) subject to the provisions of the scheme, the continuation by or against the transferee insurer, of any actions or proceedings pending against the insurer;
(f) the reduction of the interest or rights which the shareholders, policy-holders and other creditors have in or against the insurer before the amalgamation to such extent as the 2[Authority[ considers necessary in the public interest or in the interests of the shareholders, policy-holders and other creditors or for the maintenance of the business of the insurer;
(g) the payment in cash or otherwise to policy-holders, and other creditors in full satisfaction of their claim,--
(i) in respect of their interest or rights in or against the insurer before the amalgamation; or
(ii) where their interest or rights aforesaid in or against the insurer has or have been reduced under clause (f) in respect of such interest or rights as so reduced;
(h) the allotment to the shareholders of the insurer for shares held by them therein before the amalgamation whether their interest in such shares has been reduced under clause (f) or not of shares in the transferee insurer and where any shareholders claim payment in cash and not allotment of shares, or where it is not possible to allot shares to any shareholders, the payment in cash to those shareholders in full satisfaction of their claim--
(i) in respect of their interest in shares in the insurer before the amalgamation; or
(ii) where such interest has been reduced under clause (f) in respect of their interest in shares as so reduced;
(i) the continuance of the services of all the employees of the insurer (excepting such of them as not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947), are specifically mentioned in the scheme) in the transferee insurer at the same remuneration and on the same terms and conditions of service, which they were getting or, as the case may be, by which they were being governed, immediately before the date of the amalgamation:
Provided that the scheme shall contain a provision that the transferee insurer shall pay or grant not later than the expiry of the period of three years, from the date of the amalgamation, to the said employees the same remuneration and the same terms and conditions of service as are applicable to the other employees of corresponding rank or status, of the transferee insurer subject to the qualifications and experience of the said employees being the same as or equivalent to those of such other employees of the transferee insurer:
Provided further that if in any case any doubt or difference arises as to whether the qualification and experience of any of the said employees are the same as or equivalent to the qualifications and experience of the other employees of corresponding rank or status of the transferee insurer, the doubt or difference shall be referred to the Controller whose decision thereon shall be final;
(j) notwithstanding anything contained in clause (i) where any of the employees of the insurer not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947), are specifically mentioned in the scheme under clause (i) of where any employees of the insurer have by notice in writing given to the insurer or, as the case may be, the transferee insurer at any time before the expiry of one month next following the date on which the scheme is sanctioned by the Central Government, intimated their intention of not becoming employees of the transferee insurer, the payment to such employees of compensation, if any, to which they are entitled under the Industrial Disputes Act, 1947 (14 of 1947), and such pension, gratuity, provident fund, or other retirement benefits ordinarily admissible to them under the rules or authorisations of the insurer immediately before the date of the amalgamation;
(k) any other terms and conditions for the amalgamation of the insurer;
(l) such incidental, consequential and supplemental matters as are necessary to secure that the amalgamation shall be fully and effectively carried out.
(3)(a) A copy of the scheme prepared by the 3[Authority] shall be sent in draft to the insurer and also to the transferee insurer and any other insurer concerned in the amalgamation, for suggestions and objections, if any, within such period as the 3Authority] may specify for this purpose.
(b) The 3[Authority] may make such modifications, if any, in the draft scheme as he may consider necessary in the light of the suggestions and objections received from the insurer and also from the transferee insurer and any other insurer concerned in the amalgamation and from any shareholder, policyholder or other creditor of each of those insurers and the transferee insurer.
4[(4) The scheme shall thereafter be placed before the Central Government for its sanction and the Central Government may sanction the scheme without any modification or with such modifications as it may consider necessary, and the scheme as sanctioned by the Central Government shall come into force on such date as the Central Government may notify in this behalf in the Official Gazette:
Provided that different dates may be specified for different provisions of the scheme.
(4A) Every policyholder or shareholder or member of each of the insurers, before amalgamation, shall have the same interest in, or rights against the insurer resulting from amalgamation as he had in the company of which he was originally a policyholder or shareholder or member:
Provided that where the interests or rights of any shareholder or member are less than his interest in, or rights against, the original insurer, he shall be entitled to compensation, which shall be assessed by the Authority in such manner as may be specified by the regulations.
(4B) The compensation so assessed shall be paid to the shareholder or member by the insurance company resulting from such amalgamation.
(4C) Any member or shareholder aggrieved by the assessment of compensation made by the Authority under sub-section (4A) may within thirty days from the publication of such assessment prefer an appeal to the Securities Appellate Tribunal.]
(5) The sanction accorded by the Central Government under sub-section (4) shall be conclusive evidence that all the requirements of this section relating to amalgamation have been complied with and a copy of the sanctioned scheme certified in writing by an officer of the Central Government to be a true copy thereof shall, in all legal proceedings (whether in appeal or otherwise) be admitted as evidence to the same extent as the original scheme.
(6) The 3[Authority] may, in like manner, add to amend or vary any scheme made under this section.
(7) On and from the date of the coming into operation of the scheme or any provision thereof, the scheme or such provision shall be binding on the insurer or, as the case may be, on the transferee insurer and any other insurer concerned in the amalgamation and also on all the shareholders, policy-holders and other creditors and employees of each of those insurers and of transferee insurer, and on any other person having any right or liability in relation to any of those insurers or the transferee insurer.
(8) On and from such date as may be specified by the Central Government in this behalf, the properties and assets of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to, and vest in, and the liabilities of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to and become the liabilities of the transferee insurer.
(9) If any difficulty arises in giving effect to the provisions of the scheme, the Central Government may by order do anything not inconsistent with such provisions which appears to it necessary or expedient for the purpose of removing the difficulty.
(10) Copies of every scheme made under this section and of every order made under sub-section (9) shall be laid before each House of Parliament, as soon as may be, after the scheme has been sanctioned by the Central Government, or as the case may be, the order has been made.
(11) Nothing in this section shall be deemed to prevent the amalgamation with an insurer by a single scheme of several insurers.
(12) The provisions of this section and of any scheme made under it shall have effect notwithstanding anything to the contrary contained in any other provisions of this Act or in any other law or any agreement, award or other instrument for the time being in force.
(13) The provisions of section 37 shall not apply to an amalgamation given effect to under the provisions of this section.]1. Subs. by s. 30, and the First Schedule, ibid., for "Controller" (w.e.f. 19-4-2000).
2. Ins. by Act 62 of 1968, s. 17 (w.e.f. 1-6-1969).
3. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000).
4. Subs. by Act 5 of 2015, s 44, for sub-section (4) (w.e.f. 26-12-2014). | 10 | Power of Authority to prepare Scheme of Amalgamation |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18166§ionno=37A&orderno=72 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 37A | Power of Authority to prepare Scheme of Amalgamation | 2[37A. Power of 1[Authority] to prepare Scheme of Amalgamation. --(1) If the 1[Authority] is satisfied that--
(i) in the public interest; or
(ii) in the interests of the policy-holders; or
(iii) in order to secure the proper management of an insurer; or
(iv) in the interest of insurance business of the country as a whole,
it is necessary so to do, he may prepare a scheme for the amalgamation of that insurer with any other insurer (hereinafter referred to in this section as the transferee insurer):
Provided that no such scheme shall be prepared unless the other insurer has given his written consent to the proposal for such amalgamation.
(2) The scheme aforesaid may contain provisions for all or any of the following matters, namely: --
(a) the constitution, name and registered office, the capital, assets, powers, rights, interests, authorities and privileges, and the liabilities, duties and obligations of the transferee insurer;
(b) the transfer to the transferee insurer of the business, properties, assets and liabilities of the insurer on such terms and conditions as may be specified in the scheme;
(c) any change in the Board of Directors, or the appointment of a new Board of Directors of the transferee insurer and the authority by whom, the manner in which, and the other terms and conditions on which, such change or appointment shall be made, and, in the case of appointment of a new Board of Directors or of any director, the period for which such appointment shall be made;
(d) the alteration of the memorandum and articles of association of the transferee insurer for the purpose of altering the capital thereof or for such other purposes as may be necessary to give effect to the amalgamation;
(e) subject to the provisions of the scheme, the continuation by or against the transferee insurer, of any actions or proceedings pending against the insurer;
(f) the reduction of the interest or rights which the shareholders, policy-holders and other creditors have in or against the insurer before the amalgamation to such extent as the 2[Authority[ considers necessary in the public interest or in the interests of the shareholders, policy-holders and other creditors or for the maintenance of the business of the insurer;
(g) the payment in cash or otherwise to policy-holders, and other creditors in full satisfaction of their claim,--
(i) in respect of their interest or rights in or against the insurer before the amalgamation; or
(ii) where their interest or rights aforesaid in or against the insurer has or have been reduced under clause (f) in respect of such interest or rights as so reduced;
(h) the allotment to the shareholders of the insurer for shares held by them therein before the amalgamation whether their interest in such shares has been reduced under clause (f) or not of shares in the transferee insurer and where any shareholders claim payment in cash and not allotment of shares, or where it is not possible to allot shares to any shareholders, the payment in cash to those shareholders in full satisfaction of their claim--
(i) in respect of their interest in shares in the insurer before the amalgamation; or
(ii) where such interest has been reduced under clause (f) in respect of their interest in shares as so reduced;
(i) the continuance of the services of all the employees of the insurer (excepting such of them as not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947), are specifically mentioned in the scheme) in the transferee insurer at the same remuneration and on the same terms and conditions of service, which they were getting or, as the case may be, by which they were being governed, immediately before the date of the amalgamation:
Provided that the scheme shall contain a provision that the transferee insurer shall pay or grant not later than the expiry of the period of three years, from the date of the amalgamation, to the said employees the same remuneration and the same terms and conditions of service as are applicable to the other employees of corresponding rank or status, of the transferee insurer subject to the qualifications and experience of the said employees being the same as or equivalent to those of such other employees of the transferee insurer:
Provided further that if in any case any doubt or difference arises as to whether the qualification and experience of any of the said employees are the same as or equivalent to the qualifications and experience of the other employees of corresponding rank or status of the transferee insurer, the doubt or difference shall be referred to the Controller whose decision thereon shall be final;
(j) notwithstanding anything contained in clause (i) where any of the employees of the insurer not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947), are specifically mentioned in the scheme under clause (i) of where any employees of the insurer have by notice in writing given to the insurer or, as the case may be, the transferee insurer at any time before the expiry of one month next following the date on which the scheme is sanctioned by the Central Government, intimated their intention of not becoming employees of the transferee insurer, the payment to such employees of compensation, if any, to which they are entitled under the Industrial Disputes Act, 1947 (14 of 1947), and such pension, gratuity, provident fund, or other retirement benefits ordinarily admissible to them under the rules or authorisations of the insurer immediately before the date of the amalgamation;
(k) any other terms and conditions for the amalgamation of the insurer;
(l) such incidental, consequential and supplemental matters as are necessary to secure that the amalgamation shall be fully and effectively carried out.
(3)(a) A copy of the scheme prepared by the 3[Authority] shall be sent in draft to the insurer and also to the transferee insurer and any other insurer concerned in the amalgamation, for suggestions and objections, if any, within such period as the 3Authority] may specify for this purpose.
(b) The 3[Authority] may make such modifications, if any, in the draft scheme as he may consider necessary in the light of the suggestions and objections received from the insurer and also from the transferee insurer and any other insurer concerned in the amalgamation and from any shareholder, policyholder or other creditor of each of those insurers and the transferee insurer.
4[(4) The scheme shall thereafter be placed before the Central Government for its sanction and the Central Government may sanction the scheme without any modification or with such modifications as it may consider necessary, and the scheme as sanctioned by the Central Government shall come into force on such date as the Central Government may notify in this behalf in the Official Gazette:
Provided that different dates may be specified for different provisions of the scheme.
(4A) Every policyholder or shareholder or member of each of the insurers, before amalgamation, shall have the same interest in, or rights against the insurer resulting from amalgamation as he had in the company of which he was originally a policyholder or shareholder or member:
Provided that where the interests or rights of any shareholder or member are less than his interest in, or rights against, the original insurer, he shall be entitled to compensation, which shall be assessed by the Authority in such manner as may be specified by the regulations.
(4B) The compensation so assessed shall be paid to the shareholder or member by the insurance company resulting from such amalgamation.
(4C) Any member or shareholder aggrieved by the assessment of compensation made by the Authority under sub-section (4A) may within thirty days from the publication of such assessment prefer an appeal to the Securities Appellate Tribunal.]
(5) The sanction accorded by the Central Government under sub-section (4) shall be conclusive evidence that all the requirements of this section relating to amalgamation have been complied with and a copy of the sanctioned scheme certified in writing by an officer of the Central Government to be a true copy thereof shall, in all legal proceedings (whether in appeal or otherwise) be admitted as evidence to the same extent as the original scheme.
(6) The 3[Authority] may, in like manner, add to amend or vary any scheme made under this section.
(7) On and from the date of the coming into operation of the scheme or any provision thereof, the scheme or such provision shall be binding on the insurer or, as the case may be, on the transferee insurer and any other insurer concerned in the amalgamation and also on all the shareholders, policy-holders and other creditors and employees of each of those insurers and of transferee insurer, and on any other person having any right or liability in relation to any of those insurers or the transferee insurer.
(8) On and from such date as may be specified by the Central Government in this behalf, the properties and assets of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to, and vest in, and the liabilities of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to and become the liabilities of the transferee insurer.
(9) If any difficulty arises in giving effect to the provisions of the scheme, the Central Government may by order do anything not inconsistent with such provisions which appears to it necessary or expedient for the purpose of removing the difficulty.
(10) Copies of every scheme made under this section and of every order made under sub-section (9) shall be laid before each House of Parliament, as soon as may be, after the scheme has been sanctioned by the Central Government, or as the case may be, the order has been made.
(11) Nothing in this section shall be deemed to prevent the amalgamation with an insurer by a single scheme of several insurers.
(12) The provisions of this section and of any scheme made under it shall have effect notwithstanding anything to the contrary contained in any other provisions of this Act or in any other law or any agreement, award or other instrument for the time being in force.
(13) The provisions of section 37 shall not apply to an amalgamation given effect to under the provisions of this section.]1. Subs. by s. 30, and the First Schedule, ibid., for "Controller" (w.e.f. 19-4-2000).
2. Ins. by Act 62 of 1968, s. 17 (w.e.f. 1-6-1969).
3. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000).
4. Subs. by Act 5 of 2015, s 44, for sub-section (4) (w.e.f. 26-12-2014). | 11 | Power of Authority to prepare Scheme of Amalgamation |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18166§ionno=37A&orderno=72 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 37A | Power of Authority to prepare Scheme of Amalgamation | 2[37A. Power of 1[Authority] to prepare Scheme of Amalgamation. --(1) If the 1[Authority] is satisfied that--
(i) in the public interest; or
(ii) in the interests of the policy-holders; or
(iii) in order to secure the proper management of an insurer; or
(iv) in the interest of insurance business of the country as a whole,
it is necessary so to do, he may prepare a scheme for the amalgamation of that insurer with any other insurer (hereinafter referred to in this section as the transferee insurer):
Provided that no such scheme shall be prepared unless the other insurer has given his written consent to the proposal for such amalgamation.
(2) The scheme aforesaid may contain provisions for all or any of the following matters, namely: --
(a) the constitution, name and registered office, the capital, assets, powers, rights, interests, authorities and privileges, and the liabilities, duties and obligations of the transferee insurer;
(b) the transfer to the transferee insurer of the business, properties, assets and liabilities of the insurer on such terms and conditions as may be specified in the scheme;
(c) any change in the Board of Directors, or the appointment of a new Board of Directors of the transferee insurer and the authority by whom, the manner in which, and the other terms and conditions on which, such change or appointment shall be made, and, in the case of appointment of a new Board of Directors or of any director, the period for which such appointment shall be made;
(d) the alteration of the memorandum and articles of association of the transferee insurer for the purpose of altering the capital thereof or for such other purposes as may be necessary to give effect to the amalgamation;
(e) subject to the provisions of the scheme, the continuation by or against the transferee insurer, of any actions or proceedings pending against the insurer;
(f) the reduction of the interest or rights which the shareholders, policy-holders and other creditors have in or against the insurer before the amalgamation to such extent as the 2[Authority[ considers necessary in the public interest or in the interests of the shareholders, policy-holders and other creditors or for the maintenance of the business of the insurer;
(g) the payment in cash or otherwise to policy-holders, and other creditors in full satisfaction of their claim,--
(i) in respect of their interest or rights in or against the insurer before the amalgamation; or
(ii) where their interest or rights aforesaid in or against the insurer has or have been reduced under clause (f) in respect of such interest or rights as so reduced;
(h) the allotment to the shareholders of the insurer for shares held by them therein before the amalgamation whether their interest in such shares has been reduced under clause (f) or not of shares in the transferee insurer and where any shareholders claim payment in cash and not allotment of shares, or where it is not possible to allot shares to any shareholders, the payment in cash to those shareholders in full satisfaction of their claim--
(i) in respect of their interest in shares in the insurer before the amalgamation; or
(ii) where such interest has been reduced under clause (f) in respect of their interest in shares as so reduced;
(i) the continuance of the services of all the employees of the insurer (excepting such of them as not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947), are specifically mentioned in the scheme) in the transferee insurer at the same remuneration and on the same terms and conditions of service, which they were getting or, as the case may be, by which they were being governed, immediately before the date of the amalgamation:
Provided that the scheme shall contain a provision that the transferee insurer shall pay or grant not later than the expiry of the period of three years, from the date of the amalgamation, to the said employees the same remuneration and the same terms and conditions of service as are applicable to the other employees of corresponding rank or status, of the transferee insurer subject to the qualifications and experience of the said employees being the same as or equivalent to those of such other employees of the transferee insurer:
Provided further that if in any case any doubt or difference arises as to whether the qualification and experience of any of the said employees are the same as or equivalent to the qualifications and experience of the other employees of corresponding rank or status of the transferee insurer, the doubt or difference shall be referred to the Controller whose decision thereon shall be final;
(j) notwithstanding anything contained in clause (i) where any of the employees of the insurer not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947), are specifically mentioned in the scheme under clause (i) of where any employees of the insurer have by notice in writing given to the insurer or, as the case may be, the transferee insurer at any time before the expiry of one month next following the date on which the scheme is sanctioned by the Central Government, intimated their intention of not becoming employees of the transferee insurer, the payment to such employees of compensation, if any, to which they are entitled under the Industrial Disputes Act, 1947 (14 of 1947), and such pension, gratuity, provident fund, or other retirement benefits ordinarily admissible to them under the rules or authorisations of the insurer immediately before the date of the amalgamation;
(k) any other terms and conditions for the amalgamation of the insurer;
(l) such incidental, consequential and supplemental matters as are necessary to secure that the amalgamation shall be fully and effectively carried out.
(3)(a) A copy of the scheme prepared by the 3[Authority] shall be sent in draft to the insurer and also to the transferee insurer and any other insurer concerned in the amalgamation, for suggestions and objections, if any, within such period as the 3Authority] may specify for this purpose.
(b) The 3[Authority] may make such modifications, if any, in the draft scheme as he may consider necessary in the light of the suggestions and objections received from the insurer and also from the transferee insurer and any other insurer concerned in the amalgamation and from any shareholder, policyholder or other creditor of each of those insurers and the transferee insurer.
4[(4) The scheme shall thereafter be placed before the Central Government for its sanction and the Central Government may sanction the scheme without any modification or with such modifications as it may consider necessary, and the scheme as sanctioned by the Central Government shall come into force on such date as the Central Government may notify in this behalf in the Official Gazette:
Provided that different dates may be specified for different provisions of the scheme.
(4A) Every policyholder or shareholder or member of each of the insurers, before amalgamation, shall have the same interest in, or rights against the insurer resulting from amalgamation as he had in the company of which he was originally a policyholder or shareholder or member:
Provided that where the interests or rights of any shareholder or member are less than his interest in, or rights against, the original insurer, he shall be entitled to compensation, which shall be assessed by the Authority in such manner as may be specified by the regulations.
(4B) The compensation so assessed shall be paid to the shareholder or member by the insurance company resulting from such amalgamation.
(4C) Any member or shareholder aggrieved by the assessment of compensation made by the Authority under sub-section (4A) may within thirty days from the publication of such assessment prefer an appeal to the Securities Appellate Tribunal.]
(5) The sanction accorded by the Central Government under sub-section (4) shall be conclusive evidence that all the requirements of this section relating to amalgamation have been complied with and a copy of the sanctioned scheme certified in writing by an officer of the Central Government to be a true copy thereof shall, in all legal proceedings (whether in appeal or otherwise) be admitted as evidence to the same extent as the original scheme.
(6) The 3[Authority] may, in like manner, add to amend or vary any scheme made under this section.
(7) On and from the date of the coming into operation of the scheme or any provision thereof, the scheme or such provision shall be binding on the insurer or, as the case may be, on the transferee insurer and any other insurer concerned in the amalgamation and also on all the shareholders, policy-holders and other creditors and employees of each of those insurers and of transferee insurer, and on any other person having any right or liability in relation to any of those insurers or the transferee insurer.
(8) On and from such date as may be specified by the Central Government in this behalf, the properties and assets of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to, and vest in, and the liabilities of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to and become the liabilities of the transferee insurer.
(9) If any difficulty arises in giving effect to the provisions of the scheme, the Central Government may by order do anything not inconsistent with such provisions which appears to it necessary or expedient for the purpose of removing the difficulty.
(10) Copies of every scheme made under this section and of every order made under sub-section (9) shall be laid before each House of Parliament, as soon as may be, after the scheme has been sanctioned by the Central Government, or as the case may be, the order has been made.
(11) Nothing in this section shall be deemed to prevent the amalgamation with an insurer by a single scheme of several insurers.
(12) The provisions of this section and of any scheme made under it shall have effect notwithstanding anything to the contrary contained in any other provisions of this Act or in any other law or any agreement, award or other instrument for the time being in force.
(13) The provisions of section 37 shall not apply to an amalgamation given effect to under the provisions of this section.]1. Subs. by s. 30, and the First Schedule, ibid., for "Controller" (w.e.f. 19-4-2000).
2. Ins. by Act 62 of 1968, s. 17 (w.e.f. 1-6-1969).
3. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000).
4. Subs. by Act 5 of 2015, s 44, for sub-section (4) (w.e.f. 26-12-2014). | 12 | Power of Authority to prepare Scheme of Amalgamation (8) On and from such date as may be specified by the Central Government in this behalf, the properties and assets of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to, and vest in, and the liabilities of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to and become the liabilities of the transferee insurer.(9) If any difficulty arises in giving effect to the provisions of the scheme, the Central Government may by order do anything not inconsistent with such provisions which appears to it necessary or expedient for the purpose of removing the difficulty.(10) Copies of every scheme made under this section and of every order made under sub-section (9) shall be laid before each House of Parliament, as soon as may be, after the scheme has been sanctioned by the Central Government, or as the case may be, the order has been made.(11) Nothing in this section shall be deemed to prevent the amalgamation with an insurer by a single scheme of several insurers.(12) The provisions of this section and of any scheme made under it shall have effect notwithstanding anything to the contrary contained in any other provisions of this Act or in any other law or any agreement, award or other instrument for the time being in force.(13) The provisions of section 37 shall not apply to an amalgamation given effect to under the provisions of this section.]1.Subs.by s.30, and the First Schedule, ibid., for "Controller" (w.e.f.19-4-2000).2.Ins.by Act 62 of 1968, s.17 (w.e.f.1-6-1969).3.Subs.by Act 41 of 1999, s.30 and the First Schedule, for "Controller" (w.e.f.19-4-2000).4.Subs.by Act 5 of 2015, s 44, for sub-section (4) (w.e.f.26-12-2014). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18167§ionno=38&orderno=73 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 38 | Assignment and transfer of insurance policies | 1[38. Assignment and transfer of insurance policies. --(1) A transfer or assignment of a policy of insurance, wholly or in part, whether with or without consideration, may be made only by an endorsement upon the policy itself or by a separate instrument, signed in either case by the transferor or by the assignor or his duly authorised agent and attested by at least one witness, specifically setting forth the fact of transfer or assignment and the reasons thereof, the antecedents of the assignee and the terms on which the assignment is made.
(2) An insurer may, accept the transfer or assignment, or decline to act upon any endorsement made under sub-section (1), where it has sufficient reason to believe that such transfer or assignment is not bona fide or is not in the interest of the policyholder or in public interest or is for the purpose of trading of insurance policy.
(3) The insurer shall, before refusing to act upon the endorsement, record in writing the reasons for such refusal and communicate the same to the policyholder not later than thirty days from the date of the policyholder giving notice of such transfer or assignment.
(4) Any person aggrieved by the decision of an insurer to decline to act upon such transfer or assignment may within a period of thirty days from the date of receipt of the communication from the insurer containing reasons for such refusal, prefer a claim to the Authority.
(5) Subject to the provisions in sub-section (2), the transfer or assignment shall be complete and effectual upon the execution of such endorsement or instrument duly attested but except, where the transfer or assignment is in favour of the insurer, shall not be operative as against an insurer, and shall not confer upon the transferee or assignee, or his legal representative, any right to sue for the amount of such policy or the moneys secured thereby until a notice in writing of the transfer or assignment and either the said endorsement or instrument itself or a copy thereof certified to be correct by both transferor and transferee or their duly authorised agents have been delivered to the insurer:
Provided that where the insurer maintains one or more places of business in India, such notice shall be delivered only at the place where the policy is being serviced.
(6) The date on which the notice referred to in sub-section (5) is delivered to the insurer shall regulate the priority of all claims under a transfer or assignment as between persons interested in the policy; and where there is more than one instrument of transfer or assignment the priority of the claims under such instruments shall be governed by the order in which the notices referred to in sub-section (5) are delivered:
Provided that if any dispute as to priority of payment arises as between assignees, the dispute shall be referred to the Authority.
(7) Upon the receipt of the notice referred to in sub-section (5), the insurer shall record the fact of such transfer or assignment together with the date thereof and the name of the transferee or the assignee and shall, on the request of the person by whom the notice was given, or of the transferee or assignee, on payment of such fee as may be specified by the regulations, grant a written acknowledgement of the receipt of such notice; and any such acknowledgement shall be conclusive evidence against the insurer that he has duly received the notice to which such acknowledgement relates.
(8) Subject to the terms and conditions of the transfer or assignment, the insurer shall, from the date of the receipt of the notice referred to in sub-section (5), recognise the transferee or assignee named in the notice as the absolute transferee or assignee entitled to benefit under the policy, and such person shall be subject to all liabilities and equities to which the transferor or assignor was subject at the date of the transfer or assignment and may institute any proceedings in relation to the policy, obtain a loan under the policy or surrender the policy without obtaining the consent of the transferor or assignor or making him a party to such proceedings.
Explanation.-- Except where the endorsement referred to in sub-section (1) expressly indicates that the assignment or transfer is conditional in terms of sub-section (10) hereunder, every assignment or transfer shall be deemed to be an absolute assignment or transfer and the assignee or transferee, as the case may be, shall be deemed to be the absolute assignee or transferee respectively.
(9) Any rights and remedies of an assignee or transferee of a policy of life insurance under an assignment or transfer effected prior to the commencement of the Insurance Laws (Amendment) Act, 2015 (5 of 2015) shall not be affected by the provisions of this section.
(10) Notwithstanding any law or custom having the force of law to the contrary, an assignment in favour of a person made upon the condition that--
(a) the proceeds under the policy shall become payable to the policyholder or the nominee or nominees in the event of either the assignee or transferee predeceasing the insured; or
(b) the insured surviving the term of the policy, shall be valid:
Provided that a conditional assignee shall not be entitled to obtain a loan on the policy or surrender a policy.
(11) In the case of the partial assignment or transfer of a policy of insurance under sub-section (1), the liability of the insurer shall be limited to the amount secured by partial assignment or transfer and such policyholder shall not be entitled to further assign or transfer the residual amount payable under the same policy.]1. Subs. by Act 5 of 2015, s. 45, for sections 38, 39 and 40 (w.e.f. 26-12-2014). | 0 | Assignment and transfer of insurance policies 1[38.Assignment and transfer of insurance policies.--(1) A transfer or assignment of a policy of insurance, wholly or in part, whether with or without consideration, may be made only by an endorsement upon the policy itself or by a separate instrument, signed in either case by the transferor or by the assignor or his duly authorised agent and attested by at least one witness, specifically setting forth the fact of transfer or assignment and the reasons thereof, the antecedents of the assignee and the terms on which the assignment is made.(2) An insurer may, accept the transfer or assignment, or decline to act upon any endorsement made under sub-section (1), where it has sufficient reason to believe that such transfer or assignment is not bona fide or is not in the interest of the policyholder or in public interest or is for the purpose of trading of insurance policy.(3) The insurer shall, before refusing to act upon the endorsement, record in writing the reasons for such refusal and communicate the same to the policyholder not later than thirty days from the date of the policyholder giving notice of such transfer or assignment.(4) Any person aggrieved by the decision of an insurer to decline to act upon such transfer or assignment may within a period of thirty days from the date of receipt of the communication from the insurer containing reasons for such refusal, prefer a claim to the Authority.(5) Subject to the provisions in sub-section (2), the transfer or assignment shall be complete and effectual upon the execution of such endorsement or instrument duly attested but except, where the transfer or assignment is in favour of the insurer, shall not be operative as against an insurer, and shall not confer upon the transferee or assignee, or his legal representative, any right to sue for the amount of such policy or the moneys secured thereby until a notice in writing of the transfer or assignment and either the said endorsement or instrument itself or a copy thereof certified to be correct by both transferor and transferee or their duly authorised agents have been delivered to the insurer:
Provided that where the insurer maintains one or more places of business in India, such notice shall be delivered only at the place where the policy is being serviced. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18167§ionno=38&orderno=73 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 38 | Assignment and transfer of insurance policies | 1[38. Assignment and transfer of insurance policies. --(1) A transfer or assignment of a policy of insurance, wholly or in part, whether with or without consideration, may be made only by an endorsement upon the policy itself or by a separate instrument, signed in either case by the transferor or by the assignor or his duly authorised agent and attested by at least one witness, specifically setting forth the fact of transfer or assignment and the reasons thereof, the antecedents of the assignee and the terms on which the assignment is made.
(2) An insurer may, accept the transfer or assignment, or decline to act upon any endorsement made under sub-section (1), where it has sufficient reason to believe that such transfer or assignment is not bona fide or is not in the interest of the policyholder or in public interest or is for the purpose of trading of insurance policy.
(3) The insurer shall, before refusing to act upon the endorsement, record in writing the reasons for such refusal and communicate the same to the policyholder not later than thirty days from the date of the policyholder giving notice of such transfer or assignment.
(4) Any person aggrieved by the decision of an insurer to decline to act upon such transfer or assignment may within a period of thirty days from the date of receipt of the communication from the insurer containing reasons for such refusal, prefer a claim to the Authority.
(5) Subject to the provisions in sub-section (2), the transfer or assignment shall be complete and effectual upon the execution of such endorsement or instrument duly attested but except, where the transfer or assignment is in favour of the insurer, shall not be operative as against an insurer, and shall not confer upon the transferee or assignee, or his legal representative, any right to sue for the amount of such policy or the moneys secured thereby until a notice in writing of the transfer or assignment and either the said endorsement or instrument itself or a copy thereof certified to be correct by both transferor and transferee or their duly authorised agents have been delivered to the insurer:
Provided that where the insurer maintains one or more places of business in India, such notice shall be delivered only at the place where the policy is being serviced.
(6) The date on which the notice referred to in sub-section (5) is delivered to the insurer shall regulate the priority of all claims under a transfer or assignment as between persons interested in the policy; and where there is more than one instrument of transfer or assignment the priority of the claims under such instruments shall be governed by the order in which the notices referred to in sub-section (5) are delivered:
Provided that if any dispute as to priority of payment arises as between assignees, the dispute shall be referred to the Authority.
(7) Upon the receipt of the notice referred to in sub-section (5), the insurer shall record the fact of such transfer or assignment together with the date thereof and the name of the transferee or the assignee and shall, on the request of the person by whom the notice was given, or of the transferee or assignee, on payment of such fee as may be specified by the regulations, grant a written acknowledgement of the receipt of such notice; and any such acknowledgement shall be conclusive evidence against the insurer that he has duly received the notice to which such acknowledgement relates.
(8) Subject to the terms and conditions of the transfer or assignment, the insurer shall, from the date of the receipt of the notice referred to in sub-section (5), recognise the transferee or assignee named in the notice as the absolute transferee or assignee entitled to benefit under the policy, and such person shall be subject to all liabilities and equities to which the transferor or assignor was subject at the date of the transfer or assignment and may institute any proceedings in relation to the policy, obtain a loan under the policy or surrender the policy without obtaining the consent of the transferor or assignor or making him a party to such proceedings.
Explanation.-- Except where the endorsement referred to in sub-section (1) expressly indicates that the assignment or transfer is conditional in terms of sub-section (10) hereunder, every assignment or transfer shall be deemed to be an absolute assignment or transfer and the assignee or transferee, as the case may be, shall be deemed to be the absolute assignee or transferee respectively.
(9) Any rights and remedies of an assignee or transferee of a policy of life insurance under an assignment or transfer effected prior to the commencement of the Insurance Laws (Amendment) Act, 2015 (5 of 2015) shall not be affected by the provisions of this section.
(10) Notwithstanding any law or custom having the force of law to the contrary, an assignment in favour of a person made upon the condition that--
(a) the proceeds under the policy shall become payable to the policyholder or the nominee or nominees in the event of either the assignee or transferee predeceasing the insured; or
(b) the insured surviving the term of the policy, shall be valid:
Provided that a conditional assignee shall not be entitled to obtain a loan on the policy or surrender a policy.
(11) In the case of the partial assignment or transfer of a policy of insurance under sub-section (1), the liability of the insurer shall be limited to the amount secured by partial assignment or transfer and such policyholder shall not be entitled to further assign or transfer the residual amount payable under the same policy.]1. Subs. by Act 5 of 2015, s. 45, for sections 38, 39 and 40 (w.e.f. 26-12-2014). | 1 | Assignment and transfer of insurance policies (6) The date on which the notice referred to in sub-section (5) is delivered to the insurer shall regulate the priority of all claims under a transfer or assignment as between persons interested in the policy; and where there is more than one instrument of transfer or assignment the priority of the claims under such instruments shall be governed by the order in which the notices referred to in sub-section (5) are delivered:
Provided that if any dispute as to priority of payment arises as between assignees, the dispute shall be referred to the Authority. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18167§ionno=38&orderno=73 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 38 | Assignment and transfer of insurance policies | 1[38. Assignment and transfer of insurance policies. --(1) A transfer or assignment of a policy of insurance, wholly or in part, whether with or without consideration, may be made only by an endorsement upon the policy itself or by a separate instrument, signed in either case by the transferor or by the assignor or his duly authorised agent and attested by at least one witness, specifically setting forth the fact of transfer or assignment and the reasons thereof, the antecedents of the assignee and the terms on which the assignment is made.
(2) An insurer may, accept the transfer or assignment, or decline to act upon any endorsement made under sub-section (1), where it has sufficient reason to believe that such transfer or assignment is not bona fide or is not in the interest of the policyholder or in public interest or is for the purpose of trading of insurance policy.
(3) The insurer shall, before refusing to act upon the endorsement, record in writing the reasons for such refusal and communicate the same to the policyholder not later than thirty days from the date of the policyholder giving notice of such transfer or assignment.
(4) Any person aggrieved by the decision of an insurer to decline to act upon such transfer or assignment may within a period of thirty days from the date of receipt of the communication from the insurer containing reasons for such refusal, prefer a claim to the Authority.
(5) Subject to the provisions in sub-section (2), the transfer or assignment shall be complete and effectual upon the execution of such endorsement or instrument duly attested but except, where the transfer or assignment is in favour of the insurer, shall not be operative as against an insurer, and shall not confer upon the transferee or assignee, or his legal representative, any right to sue for the amount of such policy or the moneys secured thereby until a notice in writing of the transfer or assignment and either the said endorsement or instrument itself or a copy thereof certified to be correct by both transferor and transferee or their duly authorised agents have been delivered to the insurer:
Provided that where the insurer maintains one or more places of business in India, such notice shall be delivered only at the place where the policy is being serviced.
(6) The date on which the notice referred to in sub-section (5) is delivered to the insurer shall regulate the priority of all claims under a transfer or assignment as between persons interested in the policy; and where there is more than one instrument of transfer or assignment the priority of the claims under such instruments shall be governed by the order in which the notices referred to in sub-section (5) are delivered:
Provided that if any dispute as to priority of payment arises as between assignees, the dispute shall be referred to the Authority.
(7) Upon the receipt of the notice referred to in sub-section (5), the insurer shall record the fact of such transfer or assignment together with the date thereof and the name of the transferee or the assignee and shall, on the request of the person by whom the notice was given, or of the transferee or assignee, on payment of such fee as may be specified by the regulations, grant a written acknowledgement of the receipt of such notice; and any such acknowledgement shall be conclusive evidence against the insurer that he has duly received the notice to which such acknowledgement relates.
(8) Subject to the terms and conditions of the transfer or assignment, the insurer shall, from the date of the receipt of the notice referred to in sub-section (5), recognise the transferee or assignee named in the notice as the absolute transferee or assignee entitled to benefit under the policy, and such person shall be subject to all liabilities and equities to which the transferor or assignor was subject at the date of the transfer or assignment and may institute any proceedings in relation to the policy, obtain a loan under the policy or surrender the policy without obtaining the consent of the transferor or assignor or making him a party to such proceedings.
Explanation.-- Except where the endorsement referred to in sub-section (1) expressly indicates that the assignment or transfer is conditional in terms of sub-section (10) hereunder, every assignment or transfer shall be deemed to be an absolute assignment or transfer and the assignee or transferee, as the case may be, shall be deemed to be the absolute assignee or transferee respectively.
(9) Any rights and remedies of an assignee or transferee of a policy of life insurance under an assignment or transfer effected prior to the commencement of the Insurance Laws (Amendment) Act, 2015 (5 of 2015) shall not be affected by the provisions of this section.
(10) Notwithstanding any law or custom having the force of law to the contrary, an assignment in favour of a person made upon the condition that--
(a) the proceeds under the policy shall become payable to the policyholder or the nominee or nominees in the event of either the assignee or transferee predeceasing the insured; or
(b) the insured surviving the term of the policy, shall be valid:
Provided that a conditional assignee shall not be entitled to obtain a loan on the policy or surrender a policy.
(11) In the case of the partial assignment or transfer of a policy of insurance under sub-section (1), the liability of the insurer shall be limited to the amount secured by partial assignment or transfer and such policyholder shall not be entitled to further assign or transfer the residual amount payable under the same policy.]1. Subs. by Act 5 of 2015, s. 45, for sections 38, 39 and 40 (w.e.f. 26-12-2014). | 2 | Assignment and transfer of insurance policies |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18167§ionno=38&orderno=73 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 38 | Assignment and transfer of insurance policies | 1[38. Assignment and transfer of insurance policies. --(1) A transfer or assignment of a policy of insurance, wholly or in part, whether with or without consideration, may be made only by an endorsement upon the policy itself or by a separate instrument, signed in either case by the transferor or by the assignor or his duly authorised agent and attested by at least one witness, specifically setting forth the fact of transfer or assignment and the reasons thereof, the antecedents of the assignee and the terms on which the assignment is made.
(2) An insurer may, accept the transfer or assignment, or decline to act upon any endorsement made under sub-section (1), where it has sufficient reason to believe that such transfer or assignment is not bona fide or is not in the interest of the policyholder or in public interest or is for the purpose of trading of insurance policy.
(3) The insurer shall, before refusing to act upon the endorsement, record in writing the reasons for such refusal and communicate the same to the policyholder not later than thirty days from the date of the policyholder giving notice of such transfer or assignment.
(4) Any person aggrieved by the decision of an insurer to decline to act upon such transfer or assignment may within a period of thirty days from the date of receipt of the communication from the insurer containing reasons for such refusal, prefer a claim to the Authority.
(5) Subject to the provisions in sub-section (2), the transfer or assignment shall be complete and effectual upon the execution of such endorsement or instrument duly attested but except, where the transfer or assignment is in favour of the insurer, shall not be operative as against an insurer, and shall not confer upon the transferee or assignee, or his legal representative, any right to sue for the amount of such policy or the moneys secured thereby until a notice in writing of the transfer or assignment and either the said endorsement or instrument itself or a copy thereof certified to be correct by both transferor and transferee or their duly authorised agents have been delivered to the insurer:
Provided that where the insurer maintains one or more places of business in India, such notice shall be delivered only at the place where the policy is being serviced.
(6) The date on which the notice referred to in sub-section (5) is delivered to the insurer shall regulate the priority of all claims under a transfer or assignment as between persons interested in the policy; and where there is more than one instrument of transfer or assignment the priority of the claims under such instruments shall be governed by the order in which the notices referred to in sub-section (5) are delivered:
Provided that if any dispute as to priority of payment arises as between assignees, the dispute shall be referred to the Authority.
(7) Upon the receipt of the notice referred to in sub-section (5), the insurer shall record the fact of such transfer or assignment together with the date thereof and the name of the transferee or the assignee and shall, on the request of the person by whom the notice was given, or of the transferee or assignee, on payment of such fee as may be specified by the regulations, grant a written acknowledgement of the receipt of such notice; and any such acknowledgement shall be conclusive evidence against the insurer that he has duly received the notice to which such acknowledgement relates.
(8) Subject to the terms and conditions of the transfer or assignment, the insurer shall, from the date of the receipt of the notice referred to in sub-section (5), recognise the transferee or assignee named in the notice as the absolute transferee or assignee entitled to benefit under the policy, and such person shall be subject to all liabilities and equities to which the transferor or assignor was subject at the date of the transfer or assignment and may institute any proceedings in relation to the policy, obtain a loan under the policy or surrender the policy without obtaining the consent of the transferor or assignor or making him a party to such proceedings.
Explanation.-- Except where the endorsement referred to in sub-section (1) expressly indicates that the assignment or transfer is conditional in terms of sub-section (10) hereunder, every assignment or transfer shall be deemed to be an absolute assignment or transfer and the assignee or transferee, as the case may be, shall be deemed to be the absolute assignee or transferee respectively.
(9) Any rights and remedies of an assignee or transferee of a policy of life insurance under an assignment or transfer effected prior to the commencement of the Insurance Laws (Amendment) Act, 2015 (5 of 2015) shall not be affected by the provisions of this section.
(10) Notwithstanding any law or custom having the force of law to the contrary, an assignment in favour of a person made upon the condition that--
(a) the proceeds under the policy shall become payable to the policyholder or the nominee or nominees in the event of either the assignee or transferee predeceasing the insured; or
(b) the insured surviving the term of the policy, shall be valid:
Provided that a conditional assignee shall not be entitled to obtain a loan on the policy or surrender a policy.
(11) In the case of the partial assignment or transfer of a policy of insurance under sub-section (1), the liability of the insurer shall be limited to the amount secured by partial assignment or transfer and such policyholder shall not be entitled to further assign or transfer the residual amount payable under the same policy.]1. Subs. by Act 5 of 2015, s. 45, for sections 38, 39 and 40 (w.e.f. 26-12-2014). | 3 | Assignment and transfer of insurance policies |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18167§ionno=38&orderno=73 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 38 | Assignment and transfer of insurance policies | 1[38. Assignment and transfer of insurance policies. --(1) A transfer or assignment of a policy of insurance, wholly or in part, whether with or without consideration, may be made only by an endorsement upon the policy itself or by a separate instrument, signed in either case by the transferor or by the assignor or his duly authorised agent and attested by at least one witness, specifically setting forth the fact of transfer or assignment and the reasons thereof, the antecedents of the assignee and the terms on which the assignment is made.
(2) An insurer may, accept the transfer or assignment, or decline to act upon any endorsement made under sub-section (1), where it has sufficient reason to believe that such transfer or assignment is not bona fide or is not in the interest of the policyholder or in public interest or is for the purpose of trading of insurance policy.
(3) The insurer shall, before refusing to act upon the endorsement, record in writing the reasons for such refusal and communicate the same to the policyholder not later than thirty days from the date of the policyholder giving notice of such transfer or assignment.
(4) Any person aggrieved by the decision of an insurer to decline to act upon such transfer or assignment may within a period of thirty days from the date of receipt of the communication from the insurer containing reasons for such refusal, prefer a claim to the Authority.
(5) Subject to the provisions in sub-section (2), the transfer or assignment shall be complete and effectual upon the execution of such endorsement or instrument duly attested but except, where the transfer or assignment is in favour of the insurer, shall not be operative as against an insurer, and shall not confer upon the transferee or assignee, or his legal representative, any right to sue for the amount of such policy or the moneys secured thereby until a notice in writing of the transfer or assignment and either the said endorsement or instrument itself or a copy thereof certified to be correct by both transferor and transferee or their duly authorised agents have been delivered to the insurer:
Provided that where the insurer maintains one or more places of business in India, such notice shall be delivered only at the place where the policy is being serviced.
(6) The date on which the notice referred to in sub-section (5) is delivered to the insurer shall regulate the priority of all claims under a transfer or assignment as between persons interested in the policy; and where there is more than one instrument of transfer or assignment the priority of the claims under such instruments shall be governed by the order in which the notices referred to in sub-section (5) are delivered:
Provided that if any dispute as to priority of payment arises as between assignees, the dispute shall be referred to the Authority.
(7) Upon the receipt of the notice referred to in sub-section (5), the insurer shall record the fact of such transfer or assignment together with the date thereof and the name of the transferee or the assignee and shall, on the request of the person by whom the notice was given, or of the transferee or assignee, on payment of such fee as may be specified by the regulations, grant a written acknowledgement of the receipt of such notice; and any such acknowledgement shall be conclusive evidence against the insurer that he has duly received the notice to which such acknowledgement relates.
(8) Subject to the terms and conditions of the transfer or assignment, the insurer shall, from the date of the receipt of the notice referred to in sub-section (5), recognise the transferee or assignee named in the notice as the absolute transferee or assignee entitled to benefit under the policy, and such person shall be subject to all liabilities and equities to which the transferor or assignor was subject at the date of the transfer or assignment and may institute any proceedings in relation to the policy, obtain a loan under the policy or surrender the policy without obtaining the consent of the transferor or assignor or making him a party to such proceedings.
Explanation.-- Except where the endorsement referred to in sub-section (1) expressly indicates that the assignment or transfer is conditional in terms of sub-section (10) hereunder, every assignment or transfer shall be deemed to be an absolute assignment or transfer and the assignee or transferee, as the case may be, shall be deemed to be the absolute assignee or transferee respectively.
(9) Any rights and remedies of an assignee or transferee of a policy of life insurance under an assignment or transfer effected prior to the commencement of the Insurance Laws (Amendment) Act, 2015 (5 of 2015) shall not be affected by the provisions of this section.
(10) Notwithstanding any law or custom having the force of law to the contrary, an assignment in favour of a person made upon the condition that--
(a) the proceeds under the policy shall become payable to the policyholder or the nominee or nominees in the event of either the assignee or transferee predeceasing the insured; or
(b) the insured surviving the term of the policy, shall be valid:
Provided that a conditional assignee shall not be entitled to obtain a loan on the policy or surrender a policy.
(11) In the case of the partial assignment or transfer of a policy of insurance under sub-section (1), the liability of the insurer shall be limited to the amount secured by partial assignment or transfer and such policyholder shall not be entitled to further assign or transfer the residual amount payable under the same policy.]1. Subs. by Act 5 of 2015, s. 45, for sections 38, 39 and 40 (w.e.f. 26-12-2014). | 4 | Assignment and transfer of insurance policies (7) Upon the receipt of the notice referred to in sub-section (5), the insurer shall record the fact of such transfer or assignment together with the date thereof and the name of the transferee or the assignee and shall, on the request of the person by whom the notice was given, or of the transferee or assignee, on payment of such fee as may be specified by the regulations, grant a written acknowledgement of the receipt of such notice; and any such acknowledgement shall be conclusive evidence against the insurer that he has duly received the notice to which such acknowledgement relates.(8) Subject to the terms and conditions of the transfer or assignment, the insurer shall, from the date of the receipt of the notice referred to in sub-section (5), recognise the transferee or assignee named in the notice as the absolute transferee or assignee entitled to benefit under the policy, and such person shall be subject to all liabilities and equities to which the transferor or assignor was subject at the date of the transfer or assignment and may institute any proceedings in relation to the policy, obtain a loan under the policy or surrender the policy without obtaining the consent of the transferor or assignor or making him a party to such proceedings.Explanation.-- Except where the endorsement referred to in sub-section (1) expressly indicates that the assignment or transfer is conditional in terms of sub-section (10) hereunder, every assignment or transfer shall be deemed to be an absolute assignment or transfer and the assignee or transferee, as the case may be, shall be deemed to be the absolute assignee or transferee respectively.(9) Any rights and remedies of an assignee or transferee of a policy of life insurance under an assignment or transfer effected prior to the commencement of the Insurance Laws (Amendment) Act, 2015 (5 of 2015) shall not be affected by the provisions of this section.(10) Notwithstanding any law or custom having the force of law to the contrary, an assignment in favour of a person made upon the condition that--
(a) the proceeds under the policy shall become payable to the policyholder or the nominee or nominees in the event of either the assignee or transferee predeceasing the insured; or
(b) the insured surviving the term of the policy, shall be valid:
Provided that a conditional assignee shall not be entitled to obtain a loan on the policy or surrender a policy.(11) In the case of the partial assignment or transfer of a policy of insurance under sub-section (1), the liability of the insurer shall be limited to the amount secured by partial assignment or transfer and such policyholder shall not be entitled to further assign or transfer the residual amount payable under the same policy.]1.Subs.by Act 5 of 2015, s.45, for sections 38, 39 and 40 (w.e.f.26-12-2014). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18168§ionno=39&orderno=74 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 39 | Nomination by policy-holder | 1[39. Nomination by policyholder. --(1) The holder of a policy of life insurance on his own life may, when effecting the policy or at any time before the policy matures for payment, nominate the person or persons to whom the money secured by the policy shall be paid in the event of his death:
Provided that, where any nominee is a minor, it shall be lawful for the policyholder to appoint any person in the manner laid down by the insurer, to receive the money secured by the policy in the event of his death during the minority of the nominee.
(2) Any such nomination in order to be effectual shall, unless it is incorporated in the text of the policy itself, be made by an endorsement on the policy communicated to the insurer and registered by him in the records relating to the policy and any such nomination may at any time before the policy matures for payment be cancelled or changed by an endorsement or a further endorsement or a will, as the case may be, but unless notice in writing of any such cancellation or change has been delivered to the insurer, the insurer shall not be liable for any payment under the policy made bona fide by him to a nominee mentioned in the text of the policy or registered in records of the insurer.
(3) The insurer shall furnish to the policyholder a written acknowledgement of having registered a nomination or a cancellation or change thereof, and may charge such fee as may be specified by regulations for registering such cancellation or change.
(4) A transfer or assignment of a policy made in accordance with section 38 shall automatically cancel a nomination:
Provided that the assignment of a policy to the insurer who bears the risk on the policy at the time of the assignment, in consideration of a loan granted by that insurer on the security of the policy within its surrender value, or its reassignment on repayment of the loan shall not cancel a nomination, but shall affect the rights of the nominee only to the extent of the insurer's interest in the policy:
Provided further that the transfer or assignment of a policy, whether wholly or in part, in consideration of a loan advanced by the transferee or assignee to the policyholder, shall not cancel the nomination but shall affect the rights of the nominee only to the extent of the interest of the transferee or assignee, as the case may be, in the policy:
Provided also that the nomination, which has been automatically cancelled consequent upon the transfer or assignment, the same nomination shall stand automatically revived when the policy is reassigned by the assignee or retransferred by the transferee in favour of the policyholder on repayment of loan other than on a security of policy to the insurer.
(5) Where the policy matures for payment during the lifetime of the person whose life is insured or where the nominee or, if there are more nominees than one, all the nominees die before the policy matures for payment, the amount secured by the policy shall be payable to the policyholder or his heirs or legal representatives or the holder of a succession certificate, as the case may be.
(6) Where the nominee or if there are more nominees than one, a nominee or nominees survive the person whose life is insured, the amount secured by the policy shall be payable to such survivor or survivors.
(7) Subject to the other provisions of this section, where the holder of a policy of insurance on his own life nominates his parents, or his spouse, or his children, or his spouse and children, or any of them, the nominee or nominees shall be beneficially entitled to the amount payable by the insurer to him or them under sub-section (6) unless it is proved that the holder of the policy, having regard to the nature of his title to the policy, could not have conferred any such beneficial title on the nominee.
(8) Subject as aforesaid, where the nominee, or if there are more nominees than one, a nominee or nominees, to whom sub-section (7) applies, die after the person whose life is insured but before the amount secured by the policy is paid, the amount secured by the policy, or so much of the amount secured by the policy as represents the share of the nominee or nominees so dying (as the case may be), shall be payable to the heirs or legal representatives of the nominee or nominees or the holder of a succession certificate, as the case may be, and they shall be beneficially entitled to such amount.
(9) Nothing in sub-sections (7) and (8) shall operate to destroy or impede the right of any creditor to be paid out of the proceeds of any policy of life insurance.
(10) The provisions of sub-sections (7) and (8) shall apply to all policies of life insurance maturing for payment after the commencement of the Insurance Laws (Amendment) Act, 2015 (5 of 2015).
(11) Where a policyholder dies after the maturity of the policy but the proceeds and benefit of his policy has not been made to him because of his death, in such a case, his nominee shall be entitled to the proceeds and benefit of his policy.
(12) The provisions of this section shall not apply to any policy of life insurance to which section 6 of the Married Women's Property Act, 1874 (3 of 1874), applies or has at any time applied:
Provided that where a nomination made whether before or after the commencement of the Insurance Laws (Amendment) Act, 2015 (5 of 2015), in favour of the wife of the person who has insured his life or of his wife and children or any of them is expressed, whether or not on the face of the policy, as being made under this section, the said section 6 shall be deemed not to apply or not to have applied to the policy.]1. Subs. by Act 5 of 2015, s. 45, for sections 38, 39 and 40 (w.e.f. 26-12-2014). | 0 | Nomination by policy-holder 1[39.Nomination by policyholder.--(1) The holder of a policy of life insurance on his own life may, when effecting the policy or at any time before the policy matures for payment, nominate the person or persons to whom the money secured by the policy shall be paid in the event of his death:
Provided that, where any nominee is a minor, it shall be lawful for the policyholder to appoint any person in the manner laid down by the insurer, to receive the money secured by the policy in the event of his death during the minority of the nominee.(2) Any such nomination in order to be effectual shall, unless it is incorporated in the text of the policy itself, be made by an endorsement on the policy communicated to the insurer and registered by him in the records relating to the policy and any such nomination may at any time before the policy matures for payment be cancelled or changed by an endorsement or a further endorsement or a will, as the case may be, but unless notice in writing of any such cancellation or change has been delivered to the insurer, the insurer shall not be liable for any payment under the policy made bona fide by him to a nominee mentioned in the text of the policy or registered in records of the insurer.(3) The insurer shall furnish to the policyholder a written acknowledgement of having registered a nomination or a cancellation or change thereof, and may charge such fee as may be specified by regulations for registering such cancellation or change.(4) A transfer or assignment of a policy made in accordance with section 38 shall automatically cancel a nomination:
Provided that the assignment of a policy to the insurer who bears the risk on the policy at the time of the assignment, in consideration of a loan granted by that insurer on the security of the policy within its surrender value, or its reassignment on repayment of the loan shall not cancel a nomination, but shall affect the rights of the nominee only to the extent of the insurer's interest in the policy:
Provided further that the transfer or assignment of a policy, whether wholly or in part, in consideration of a loan advanced by the transferee or assignee to the policyholder, shall not cancel the nomination but shall affect the rights of the nominee only to the extent of the interest of the transferee or assignee, as the case may be, in the policy:
Provided also that the nomination, which has been automatically cancelled consequent upon the transfer or assignment, the same nomination shall stand automatically revived when the policy is reassigned by the assignee or retransferred by the transferee in favour of the policyholder on repayment of loan other than on a security of policy to the insurer. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18168§ionno=39&orderno=74 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 39 | Nomination by policy-holder | 1[39. Nomination by policyholder. --(1) The holder of a policy of life insurance on his own life may, when effecting the policy or at any time before the policy matures for payment, nominate the person or persons to whom the money secured by the policy shall be paid in the event of his death:
Provided that, where any nominee is a minor, it shall be lawful for the policyholder to appoint any person in the manner laid down by the insurer, to receive the money secured by the policy in the event of his death during the minority of the nominee.
(2) Any such nomination in order to be effectual shall, unless it is incorporated in the text of the policy itself, be made by an endorsement on the policy communicated to the insurer and registered by him in the records relating to the policy and any such nomination may at any time before the policy matures for payment be cancelled or changed by an endorsement or a further endorsement or a will, as the case may be, but unless notice in writing of any such cancellation or change has been delivered to the insurer, the insurer shall not be liable for any payment under the policy made bona fide by him to a nominee mentioned in the text of the policy or registered in records of the insurer.
(3) The insurer shall furnish to the policyholder a written acknowledgement of having registered a nomination or a cancellation or change thereof, and may charge such fee as may be specified by regulations for registering such cancellation or change.
(4) A transfer or assignment of a policy made in accordance with section 38 shall automatically cancel a nomination:
Provided that the assignment of a policy to the insurer who bears the risk on the policy at the time of the assignment, in consideration of a loan granted by that insurer on the security of the policy within its surrender value, or its reassignment on repayment of the loan shall not cancel a nomination, but shall affect the rights of the nominee only to the extent of the insurer's interest in the policy:
Provided further that the transfer or assignment of a policy, whether wholly or in part, in consideration of a loan advanced by the transferee or assignee to the policyholder, shall not cancel the nomination but shall affect the rights of the nominee only to the extent of the interest of the transferee or assignee, as the case may be, in the policy:
Provided also that the nomination, which has been automatically cancelled consequent upon the transfer or assignment, the same nomination shall stand automatically revived when the policy is reassigned by the assignee or retransferred by the transferee in favour of the policyholder on repayment of loan other than on a security of policy to the insurer.
(5) Where the policy matures for payment during the lifetime of the person whose life is insured or where the nominee or, if there are more nominees than one, all the nominees die before the policy matures for payment, the amount secured by the policy shall be payable to the policyholder or his heirs or legal representatives or the holder of a succession certificate, as the case may be.
(6) Where the nominee or if there are more nominees than one, a nominee or nominees survive the person whose life is insured, the amount secured by the policy shall be payable to such survivor or survivors.
(7) Subject to the other provisions of this section, where the holder of a policy of insurance on his own life nominates his parents, or his spouse, or his children, or his spouse and children, or any of them, the nominee or nominees shall be beneficially entitled to the amount payable by the insurer to him or them under sub-section (6) unless it is proved that the holder of the policy, having regard to the nature of his title to the policy, could not have conferred any such beneficial title on the nominee.
(8) Subject as aforesaid, where the nominee, or if there are more nominees than one, a nominee or nominees, to whom sub-section (7) applies, die after the person whose life is insured but before the amount secured by the policy is paid, the amount secured by the policy, or so much of the amount secured by the policy as represents the share of the nominee or nominees so dying (as the case may be), shall be payable to the heirs or legal representatives of the nominee or nominees or the holder of a succession certificate, as the case may be, and they shall be beneficially entitled to such amount.
(9) Nothing in sub-sections (7) and (8) shall operate to destroy or impede the right of any creditor to be paid out of the proceeds of any policy of life insurance.
(10) The provisions of sub-sections (7) and (8) shall apply to all policies of life insurance maturing for payment after the commencement of the Insurance Laws (Amendment) Act, 2015 (5 of 2015).
(11) Where a policyholder dies after the maturity of the policy but the proceeds and benefit of his policy has not been made to him because of his death, in such a case, his nominee shall be entitled to the proceeds and benefit of his policy.
(12) The provisions of this section shall not apply to any policy of life insurance to which section 6 of the Married Women's Property Act, 1874 (3 of 1874), applies or has at any time applied:
Provided that where a nomination made whether before or after the commencement of the Insurance Laws (Amendment) Act, 2015 (5 of 2015), in favour of the wife of the person who has insured his life or of his wife and children or any of them is expressed, whether or not on the face of the policy, as being made under this section, the said section 6 shall be deemed not to apply or not to have applied to the policy.]1. Subs. by Act 5 of 2015, s. 45, for sections 38, 39 and 40 (w.e.f. 26-12-2014). | 1 | Nomination by policy-holder (5) Where the policy matures for payment during the lifetime of the person whose life is insured or where the nominee or, if there are more nominees than one, all the nominees die before the policy matures for payment, the amount secured by the policy shall be payable to the policyholder or his heirs or legal representatives or the holder of a succession certificate, as the case may be. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18168§ionno=39&orderno=74 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 39 | Nomination by policy-holder | 1[39. Nomination by policyholder. --(1) The holder of a policy of life insurance on his own life may, when effecting the policy or at any time before the policy matures for payment, nominate the person or persons to whom the money secured by the policy shall be paid in the event of his death:
Provided that, where any nominee is a minor, it shall be lawful for the policyholder to appoint any person in the manner laid down by the insurer, to receive the money secured by the policy in the event of his death during the minority of the nominee.
(2) Any such nomination in order to be effectual shall, unless it is incorporated in the text of the policy itself, be made by an endorsement on the policy communicated to the insurer and registered by him in the records relating to the policy and any such nomination may at any time before the policy matures for payment be cancelled or changed by an endorsement or a further endorsement or a will, as the case may be, but unless notice in writing of any such cancellation or change has been delivered to the insurer, the insurer shall not be liable for any payment under the policy made bona fide by him to a nominee mentioned in the text of the policy or registered in records of the insurer.
(3) The insurer shall furnish to the policyholder a written acknowledgement of having registered a nomination or a cancellation or change thereof, and may charge such fee as may be specified by regulations for registering such cancellation or change.
(4) A transfer or assignment of a policy made in accordance with section 38 shall automatically cancel a nomination:
Provided that the assignment of a policy to the insurer who bears the risk on the policy at the time of the assignment, in consideration of a loan granted by that insurer on the security of the policy within its surrender value, or its reassignment on repayment of the loan shall not cancel a nomination, but shall affect the rights of the nominee only to the extent of the insurer's interest in the policy:
Provided further that the transfer or assignment of a policy, whether wholly or in part, in consideration of a loan advanced by the transferee or assignee to the policyholder, shall not cancel the nomination but shall affect the rights of the nominee only to the extent of the interest of the transferee or assignee, as the case may be, in the policy:
Provided also that the nomination, which has been automatically cancelled consequent upon the transfer or assignment, the same nomination shall stand automatically revived when the policy is reassigned by the assignee or retransferred by the transferee in favour of the policyholder on repayment of loan other than on a security of policy to the insurer.
(5) Where the policy matures for payment during the lifetime of the person whose life is insured or where the nominee or, if there are more nominees than one, all the nominees die before the policy matures for payment, the amount secured by the policy shall be payable to the policyholder or his heirs or legal representatives or the holder of a succession certificate, as the case may be.
(6) Where the nominee or if there are more nominees than one, a nominee or nominees survive the person whose life is insured, the amount secured by the policy shall be payable to such survivor or survivors.
(7) Subject to the other provisions of this section, where the holder of a policy of insurance on his own life nominates his parents, or his spouse, or his children, or his spouse and children, or any of them, the nominee or nominees shall be beneficially entitled to the amount payable by the insurer to him or them under sub-section (6) unless it is proved that the holder of the policy, having regard to the nature of his title to the policy, could not have conferred any such beneficial title on the nominee.
(8) Subject as aforesaid, where the nominee, or if there are more nominees than one, a nominee or nominees, to whom sub-section (7) applies, die after the person whose life is insured but before the amount secured by the policy is paid, the amount secured by the policy, or so much of the amount secured by the policy as represents the share of the nominee or nominees so dying (as the case may be), shall be payable to the heirs or legal representatives of the nominee or nominees or the holder of a succession certificate, as the case may be, and they shall be beneficially entitled to such amount.
(9) Nothing in sub-sections (7) and (8) shall operate to destroy or impede the right of any creditor to be paid out of the proceeds of any policy of life insurance.
(10) The provisions of sub-sections (7) and (8) shall apply to all policies of life insurance maturing for payment after the commencement of the Insurance Laws (Amendment) Act, 2015 (5 of 2015).
(11) Where a policyholder dies after the maturity of the policy but the proceeds and benefit of his policy has not been made to him because of his death, in such a case, his nominee shall be entitled to the proceeds and benefit of his policy.
(12) The provisions of this section shall not apply to any policy of life insurance to which section 6 of the Married Women's Property Act, 1874 (3 of 1874), applies or has at any time applied:
Provided that where a nomination made whether before or after the commencement of the Insurance Laws (Amendment) Act, 2015 (5 of 2015), in favour of the wife of the person who has insured his life or of his wife and children or any of them is expressed, whether or not on the face of the policy, as being made under this section, the said section 6 shall be deemed not to apply or not to have applied to the policy.]1. Subs. by Act 5 of 2015, s. 45, for sections 38, 39 and 40 (w.e.f. 26-12-2014). | 2 | Nomination by policy-holder |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18168§ionno=39&orderno=74 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 39 | Nomination by policy-holder | 1[39. Nomination by policyholder. --(1) The holder of a policy of life insurance on his own life may, when effecting the policy or at any time before the policy matures for payment, nominate the person or persons to whom the money secured by the policy shall be paid in the event of his death:
Provided that, where any nominee is a minor, it shall be lawful for the policyholder to appoint any person in the manner laid down by the insurer, to receive the money secured by the policy in the event of his death during the minority of the nominee.
(2) Any such nomination in order to be effectual shall, unless it is incorporated in the text of the policy itself, be made by an endorsement on the policy communicated to the insurer and registered by him in the records relating to the policy and any such nomination may at any time before the policy matures for payment be cancelled or changed by an endorsement or a further endorsement or a will, as the case may be, but unless notice in writing of any such cancellation or change has been delivered to the insurer, the insurer shall not be liable for any payment under the policy made bona fide by him to a nominee mentioned in the text of the policy or registered in records of the insurer.
(3) The insurer shall furnish to the policyholder a written acknowledgement of having registered a nomination or a cancellation or change thereof, and may charge such fee as may be specified by regulations for registering such cancellation or change.
(4) A transfer or assignment of a policy made in accordance with section 38 shall automatically cancel a nomination:
Provided that the assignment of a policy to the insurer who bears the risk on the policy at the time of the assignment, in consideration of a loan granted by that insurer on the security of the policy within its surrender value, or its reassignment on repayment of the loan shall not cancel a nomination, but shall affect the rights of the nominee only to the extent of the insurer's interest in the policy:
Provided further that the transfer or assignment of a policy, whether wholly or in part, in consideration of a loan advanced by the transferee or assignee to the policyholder, shall not cancel the nomination but shall affect the rights of the nominee only to the extent of the interest of the transferee or assignee, as the case may be, in the policy:
Provided also that the nomination, which has been automatically cancelled consequent upon the transfer or assignment, the same nomination shall stand automatically revived when the policy is reassigned by the assignee or retransferred by the transferee in favour of the policyholder on repayment of loan other than on a security of policy to the insurer.
(5) Where the policy matures for payment during the lifetime of the person whose life is insured or where the nominee or, if there are more nominees than one, all the nominees die before the policy matures for payment, the amount secured by the policy shall be payable to the policyholder or his heirs or legal representatives or the holder of a succession certificate, as the case may be.
(6) Where the nominee or if there are more nominees than one, a nominee or nominees survive the person whose life is insured, the amount secured by the policy shall be payable to such survivor or survivors.
(7) Subject to the other provisions of this section, where the holder of a policy of insurance on his own life nominates his parents, or his spouse, or his children, or his spouse and children, or any of them, the nominee or nominees shall be beneficially entitled to the amount payable by the insurer to him or them under sub-section (6) unless it is proved that the holder of the policy, having regard to the nature of his title to the policy, could not have conferred any such beneficial title on the nominee.
(8) Subject as aforesaid, where the nominee, or if there are more nominees than one, a nominee or nominees, to whom sub-section (7) applies, die after the person whose life is insured but before the amount secured by the policy is paid, the amount secured by the policy, or so much of the amount secured by the policy as represents the share of the nominee or nominees so dying (as the case may be), shall be payable to the heirs or legal representatives of the nominee or nominees or the holder of a succession certificate, as the case may be, and they shall be beneficially entitled to such amount.
(9) Nothing in sub-sections (7) and (8) shall operate to destroy or impede the right of any creditor to be paid out of the proceeds of any policy of life insurance.
(10) The provisions of sub-sections (7) and (8) shall apply to all policies of life insurance maturing for payment after the commencement of the Insurance Laws (Amendment) Act, 2015 (5 of 2015).
(11) Where a policyholder dies after the maturity of the policy but the proceeds and benefit of his policy has not been made to him because of his death, in such a case, his nominee shall be entitled to the proceeds and benefit of his policy.
(12) The provisions of this section shall not apply to any policy of life insurance to which section 6 of the Married Women's Property Act, 1874 (3 of 1874), applies or has at any time applied:
Provided that where a nomination made whether before or after the commencement of the Insurance Laws (Amendment) Act, 2015 (5 of 2015), in favour of the wife of the person who has insured his life or of his wife and children or any of them is expressed, whether or not on the face of the policy, as being made under this section, the said section 6 shall be deemed not to apply or not to have applied to the policy.]1. Subs. by Act 5 of 2015, s. 45, for sections 38, 39 and 40 (w.e.f. 26-12-2014). | 3 | Nomination by policy-holder |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18168§ionno=39&orderno=74 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 39 | Nomination by policy-holder | 1[39. Nomination by policyholder. --(1) The holder of a policy of life insurance on his own life may, when effecting the policy or at any time before the policy matures for payment, nominate the person or persons to whom the money secured by the policy shall be paid in the event of his death:
Provided that, where any nominee is a minor, it shall be lawful for the policyholder to appoint any person in the manner laid down by the insurer, to receive the money secured by the policy in the event of his death during the minority of the nominee.
(2) Any such nomination in order to be effectual shall, unless it is incorporated in the text of the policy itself, be made by an endorsement on the policy communicated to the insurer and registered by him in the records relating to the policy and any such nomination may at any time before the policy matures for payment be cancelled or changed by an endorsement or a further endorsement or a will, as the case may be, but unless notice in writing of any such cancellation or change has been delivered to the insurer, the insurer shall not be liable for any payment under the policy made bona fide by him to a nominee mentioned in the text of the policy or registered in records of the insurer.
(3) The insurer shall furnish to the policyholder a written acknowledgement of having registered a nomination or a cancellation or change thereof, and may charge such fee as may be specified by regulations for registering such cancellation or change.
(4) A transfer or assignment of a policy made in accordance with section 38 shall automatically cancel a nomination:
Provided that the assignment of a policy to the insurer who bears the risk on the policy at the time of the assignment, in consideration of a loan granted by that insurer on the security of the policy within its surrender value, or its reassignment on repayment of the loan shall not cancel a nomination, but shall affect the rights of the nominee only to the extent of the insurer's interest in the policy:
Provided further that the transfer or assignment of a policy, whether wholly or in part, in consideration of a loan advanced by the transferee or assignee to the policyholder, shall not cancel the nomination but shall affect the rights of the nominee only to the extent of the interest of the transferee or assignee, as the case may be, in the policy:
Provided also that the nomination, which has been automatically cancelled consequent upon the transfer or assignment, the same nomination shall stand automatically revived when the policy is reassigned by the assignee or retransferred by the transferee in favour of the policyholder on repayment of loan other than on a security of policy to the insurer.
(5) Where the policy matures for payment during the lifetime of the person whose life is insured or where the nominee or, if there are more nominees than one, all the nominees die before the policy matures for payment, the amount secured by the policy shall be payable to the policyholder or his heirs or legal representatives or the holder of a succession certificate, as the case may be.
(6) Where the nominee or if there are more nominees than one, a nominee or nominees survive the person whose life is insured, the amount secured by the policy shall be payable to such survivor or survivors.
(7) Subject to the other provisions of this section, where the holder of a policy of insurance on his own life nominates his parents, or his spouse, or his children, or his spouse and children, or any of them, the nominee or nominees shall be beneficially entitled to the amount payable by the insurer to him or them under sub-section (6) unless it is proved that the holder of the policy, having regard to the nature of his title to the policy, could not have conferred any such beneficial title on the nominee.
(8) Subject as aforesaid, where the nominee, or if there are more nominees than one, a nominee or nominees, to whom sub-section (7) applies, die after the person whose life is insured but before the amount secured by the policy is paid, the amount secured by the policy, or so much of the amount secured by the policy as represents the share of the nominee or nominees so dying (as the case may be), shall be payable to the heirs or legal representatives of the nominee or nominees or the holder of a succession certificate, as the case may be, and they shall be beneficially entitled to such amount.
(9) Nothing in sub-sections (7) and (8) shall operate to destroy or impede the right of any creditor to be paid out of the proceeds of any policy of life insurance.
(10) The provisions of sub-sections (7) and (8) shall apply to all policies of life insurance maturing for payment after the commencement of the Insurance Laws (Amendment) Act, 2015 (5 of 2015).
(11) Where a policyholder dies after the maturity of the policy but the proceeds and benefit of his policy has not been made to him because of his death, in such a case, his nominee shall be entitled to the proceeds and benefit of his policy.
(12) The provisions of this section shall not apply to any policy of life insurance to which section 6 of the Married Women's Property Act, 1874 (3 of 1874), applies or has at any time applied:
Provided that where a nomination made whether before or after the commencement of the Insurance Laws (Amendment) Act, 2015 (5 of 2015), in favour of the wife of the person who has insured his life or of his wife and children or any of them is expressed, whether or not on the face of the policy, as being made under this section, the said section 6 shall be deemed not to apply or not to have applied to the policy.]1. Subs. by Act 5 of 2015, s. 45, for sections 38, 39 and 40 (w.e.f. 26-12-2014). | 4 | Nomination by policy-holder (6) Where the nominee or if there are more nominees than one, a nominee or nominees survive the person whose life is insured, the amount secured by the policy shall be payable to such survivor or survivors.(7) Subject to the other provisions of this section, where the holder of a policy of insurance on his own life nominates his parents, or his spouse, or his children, or his spouse and children, or any of them, the nominee or nominees shall be beneficially entitled to the amount payable by the insurer to him or them under sub-section (6) unless it is proved that the holder of the policy, having regard to the nature of his title to the policy, could not have conferred any such beneficial title on the nominee.(8) Subject as aforesaid, where the nominee, or if there are more nominees than one, a nominee or nominees, to whom sub-section (7) applies, die after the person whose life is insured but before the amount secured by the policy is paid, the amount secured by the policy, or so much of the amount secured by the policy as represents the share of the nominee or nominees so dying (as the case may be), shall be payable to the heirs or legal representatives of the nominee or nominees or the holder of a succession certificate, as the case may be, and they shall be beneficially entitled to such amount.(9) Nothing in sub-sections (7) and (8) shall operate to destroy or impede the right of any creditor to be paid out of the proceeds of any policy of life insurance.(10) The provisions of sub-sections (7) and (8) shall apply to all policies of life insurance maturing for payment after the commencement of the Insurance Laws (Amendment) Act, 2015 (5 of 2015).(11) Where a policyholder dies after the maturity of the policy but the proceeds and benefit of his policy has not been made to him because of his death, in such a case, his nominee shall be entitled to the proceeds and benefit of his policy.(12) The provisions of this section shall not apply to any policy of life insurance to which section 6 of the Married Women's Property Act, 1874 (3 of 1874), applies or has at any time applied:
Provided that where a nomination made whether before or after the commencement of the Insurance Laws (Amendment) Act, 2015 (5 of 2015), in favour of the wife of the person who has insured his life or of his wife and children or any of them is expressed, whether or not on the face of the policy, as being made under this section, the said section 6 shall be deemed not to apply or not to have applied to the policy.]1.Subs.by Act 5 of 2015, s.45, for sections 38, 39 and 40 (w.e.f.26-12-2014). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18169§ionno=40&orderno=75 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 40 | Prohibition of payment by way of commission or otherwise for procuring business | 1[40. Prohibition of payment by way of commission or otherwise for procuring business. --(1) No person shall, pay or contract to pay any remuneration or reward, whether by way of commission or otherwise for soliciting or procuring insurance business in India to any person except an insurance agent or an intermediary or insurance intermediary in such manner as may be specified by the regulations.
(2) No insurance agent or intermediary or insurance intermediary shall receive or contract to receive commission or remuneration in any form in respect of policies issued in India, by an insurer in any form in respect of policies issued in India, by an insurer except in accordance with the regulations specified in this regard:
Provided that the Authority, while making regulations under sub-sections (1) and (2), shall take into consideration the nature and tenure of the policy and in particular the interest of the agents and other intermediaries concerned.
(3) Without prejudice to the provisions of section 102 in respect of a contravention of any of the provisions of the preceding sub-sections or the regulations framed in this regard, by an insurer, any insurance agent or intermediary or insurance intermediary who contravenes the said provisions shall be liable to a penalty which may extend to one lakh rupees.]1. Subs. by Act 5 of 2015, s. 45, for sections 38, 39 and 40 (w.e.f. 26-12-2014). | 0 | Prohibition of payment by way of commission or otherwise for procuring business 1[40.Prohibition of payment by way of commission or otherwise for procuring business.--(1) No person shall, pay or contract to pay any remuneration or reward, whether by way of commission or otherwise for soliciting or procuring insurance business in India to any person except an insurance agent or an intermediary or insurance intermediary in such manner as may be specified by the regulations.(2) No insurance agent or intermediary or insurance intermediary shall receive or contract to receive commission or remuneration in any form in respect of policies issued in India, by an insurer in any form in respect of policies issued in India, by an insurer except in accordance with the regulations specified in this regard:
Provided that the Authority, while making regulations under sub-sections (1) and (2), shall take into consideration the nature and tenure of the policy and in particular the interest of the agents and other intermediaries concerned.(3) Without prejudice to the provisions of section 102 in respect of a contravention of any of the provisions of the preceding sub-sections or the regulations framed in this regard, by an insurer, any insurance agent or intermediary or insurance intermediary who contravenes the said provisions shall be liable to a penalty which may extend to one lakh rupees.]1.Subs.by Act 5 of 2015, s.45, for sections 38, 39 and 40 (w.e.f.26-12-2014). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18170§ionno=40A&orderno=76 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 40A | [Omitted | [Limitation of expenditure on commission.] -- Omitted by the Insurance Laws (Amendment) Act, 2015 (5 of 2015), s. 46 (w.e.f. 26-12-2014)]. | 0 | [Omitted [Limitation of expenditure on commission.] -- Omitted by the Insurance Laws (Amendment) Act, 2015 (5 of 2015), s.46 (w.e.f.26-12-2014)]. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18171§ionno=40B&orderno=77 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 40B | Limitation of expenses of management in life insurance business | 1[40B. Limitation of expenses of management in life insurance business. --No insurer shall, in respect of insurance business transacted by him in India, spend as expenses of management in any financial year any amount exceeding the amount as may be specified by the regulations made under this Act;]1. Subs. by Act 5 of 2015, s. 47, for sections 40B and 40C (w.e.f. 26-12-2014). | 0 | Limitation of expenses of management in life insurance business 1[40B.Limitation of expenses of management in life insurance business.--No insurer shall, in respect of insurance business transacted by him in India, spend as expenses of management in any financial year any amount exceeding the amount as may be specified by the regulations made under this Act;]1.Subs.by Act 5 of 2015, s.47, for sections 40B and 40C (w.e.f.26-12-2014). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18172§ionno=40C&orderno=78 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 40C | Limitation of expenses of management in general insurance business | 1[40C. Limitation of expenses of management in general, health insurance and re-insurance business. --Every insurer transacting insurance business in India shall furnish to the Authority, the details of expenses of management in such manner and form as may be specified by the regulations made under this Act.]1. Subs. by Act 5 of 2015, s. 47, for sections 40B and 40C (w.e.f. 26-12-2014). | 0 | Limitation of expenses of management in general insurance business 1[40C.Limitation of expenses of management in general, health insurance and re-insurance business.--Every insurer transacting insurance business in India shall furnish to the Authority, the details of expenses of management in such manner and form as may be specified by the regulations made under this Act.]1.Subs.by Act 5 of 2015, s.47, for sections 40B and 40C (w.e.f.26-12-2014). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18173§ionno=41&orderno=79 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 41 | Prohibition of rebates | (1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to 1[take out or renew or continue] an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing 2[or continuing] a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer:
1[Provided that acceptance by an insurance agent of commission in connection with a policy of life insurance taken out by himself on his own life shall not be deemed to be acceptance of a rebate of premium within the meaning of this sub-section if at the time of such acceptance the insurance agent satisfies the prescribed conditions establishing that he is a bona fide insurance agent employed by the insurer.]
3[(2) Any person making default in complying with the provisions of this section shall be liable for a penalty which may extend to ten lakh rupees.]1. Subs. by Act 13 of 1941, s. 27, for effect or renew (w.e.f. 8-4-1941).
2. Ins. by s. 27, ibid, (w.e.f. 8-4-1941).
3. Subs. by Act 5 of 2015, s. 48, for sub-section (2) (w.e.f. 26-12-2014). | 0 | Prohibition of rebates (1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to 1[take out or renew or continue] an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing 2[or continuing] a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer:
1[Provided that acceptance by an insurance agent of commission in connection with a policy of life insurance taken out by himself on his own life shall not be deemed to be acceptance of a rebate of premium within the meaning of this sub-section if at the time of such acceptance the insurance agent satisfies the prescribed conditions establishing that he is a bona fide insurance agent employed by the insurer.]
3[(2) Any person making default in complying with the provisions of this section shall be liable for a penalty which may extend to ten lakh rupees.]1.Subs.by Act 13 of 1941, s.27, for effect or renew (w.e.f.8-4-1941).2.Ins.by s.27, ibid, (w.e.f.8-4-1941).3.Subs.by Act 5 of 2015, s.48, for sub-section (2) (w.e.f.26-12-2014). |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18174§ionno=42&orderno=80 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 42 | Appointment of insurance agents | 1[42. Appointment of insurance agents. --(1) An insurer may appoint any person to act as insurance agent for the purpose of soliciting and procuring insurance business:
Provided that such person does not suffer from any of the disqualifications mentioned in sub-section (3).
(2) No person shall act as an insurance agent for more than one life insurer, one general insurer, one health insurer and one of each of the other mono-line insurers:
Provided that the Authority shall, while framing regulations, ensure that no conflict of interest is allowed to arise for any agent in representing two or more insurers for whom he may be an agent.
(3) The disqualifications referred to in the proviso to sub-section (1) shall be the following: --
(a) that the person is a minor;
(b) that he is found to be of unsound mind by a court of competent jurisdiction;
(c) that he has been found guilty of criminal misappropriation or criminal breach of trust or cheating or forgery or an abetment of or attempt to commit any such offence by a court of competent jurisdiction:
Provided that where at least five years have elapsed since the completion of the sentence imposed on any person in respect of any such offence, the Authority shall ordinarily declare in respect of such person that his conviction shall cease to operate as a disqualification under this clause;
(d) that in the course of any judicial proceeding relating to any policy of insurance or the winding up of an insurer or in the course of an investigation of the affairs of an insurer it has been found that he has been guilty of or has knowingly participated in or connived at any fraud, dishonesty or misrepresentation against an insurer or insured;
(e) that in the case of an individual, who does not possess the requisite qualifications or practical training or passed the examination, as may be specified by the regulations;
(f) that in the case of a company or firm making, a director or a partner or one or more of its officers or other employees so designated by it and in the case of any other person the chief executive, by whatever name called, or one or more of his employees designated by him, do not possess the requisite qualifications or practical training and have not passed such an examination as required under clauses (e) and (g);
(g) that he has not passed such examination as may be specified by the regulations;
(h) that he has violated the code of conduct as may be specified by the regulations.
(4) Any person who acts as an insurance agent in contravention of the provision of this Act, shall be liable to a penalty which may extend to ten thousand rupees and any insurer or any person acting on behalf of an insurer, who appoints any person as an insurance agent not permitted to act as such or transacts any insurance business in India through any such person shall be liable to penalty which may extend to one crore rupees.
(5) The insurer shall be responsible for all the acts and omissions of its agents including violation of code of conduct specified under clause (h) of sub-section (3) and liable to a penalty which may extend to one crore rupees.]1. Subs. by s. 49, ibid., for section 42 (w.e.f. 26-12-2014). | 0 | Appointment of insurance agents 1[42.Appointment of insurance agents.--(1) An insurer may appoint any person to act as insurance agent for the purpose of soliciting and procuring insurance business:
Provided that such person does not suffer from any of the disqualifications mentioned in sub-section (3).(2) No person shall act as an insurance agent for more than one life insurer, one general insurer, one health insurer and one of each of the other mono-line insurers:
Provided that the Authority shall, while framing regulations, ensure that no conflict of interest is allowed to arise for any agent in representing two or more insurers for whom he may be an agent.(3) The disqualifications referred to in the proviso to sub-section (1) shall be the following: --
(a) that the person is a minor;
(b) that he is found to be of unsound mind by a court of competent jurisdiction;
(c) that he has been found guilty of criminal misappropriation or criminal breach of trust or cheating or forgery or an abetment of or attempt to commit any such offence by a court of competent jurisdiction:
Provided that where at least five years have elapsed since the completion of the sentence imposed on any person in respect of any such offence, the Authority shall ordinarily declare in respect of such person that his conviction shall cease to operate as a disqualification under this clause;
(d) that in the course of any judicial proceeding relating to any policy of insurance or the winding up of an insurer or in the course of an investigation of the affairs of an insurer it has been found that he has been guilty of or has knowingly participated in or connived at any fraud, dishonesty or misrepresentation against an insurer or insured;
(e) that in the case of an individual, who does not possess the requisite qualifications or practical training or passed the examination, as may be specified by the regulations;
(f) that in the case of a company or firm making, a director or a partner or one or more of its officers or other employees so designated by it and in the case of any other person the chief executive, by whatever name called, or one or more of his employees designated by him, do not possess the requisite qualifications or practical training and have not passed such an examination as required under clauses (e) and (g);
(g) that he has not passed such examination as may be specified by the regulations;
(h) that he has violated the code of conduct as may be specified by the regulations. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18174§ionno=42&orderno=80 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 42 | Appointment of insurance agents | 1[42. Appointment of insurance agents. --(1) An insurer may appoint any person to act as insurance agent for the purpose of soliciting and procuring insurance business:
Provided that such person does not suffer from any of the disqualifications mentioned in sub-section (3).
(2) No person shall act as an insurance agent for more than one life insurer, one general insurer, one health insurer and one of each of the other mono-line insurers:
Provided that the Authority shall, while framing regulations, ensure that no conflict of interest is allowed to arise for any agent in representing two or more insurers for whom he may be an agent.
(3) The disqualifications referred to in the proviso to sub-section (1) shall be the following: --
(a) that the person is a minor;
(b) that he is found to be of unsound mind by a court of competent jurisdiction;
(c) that he has been found guilty of criminal misappropriation or criminal breach of trust or cheating or forgery or an abetment of or attempt to commit any such offence by a court of competent jurisdiction:
Provided that where at least five years have elapsed since the completion of the sentence imposed on any person in respect of any such offence, the Authority shall ordinarily declare in respect of such person that his conviction shall cease to operate as a disqualification under this clause;
(d) that in the course of any judicial proceeding relating to any policy of insurance or the winding up of an insurer or in the course of an investigation of the affairs of an insurer it has been found that he has been guilty of or has knowingly participated in or connived at any fraud, dishonesty or misrepresentation against an insurer or insured;
(e) that in the case of an individual, who does not possess the requisite qualifications or practical training or passed the examination, as may be specified by the regulations;
(f) that in the case of a company or firm making, a director or a partner or one or more of its officers or other employees so designated by it and in the case of any other person the chief executive, by whatever name called, or one or more of his employees designated by him, do not possess the requisite qualifications or practical training and have not passed such an examination as required under clauses (e) and (g);
(g) that he has not passed such examination as may be specified by the regulations;
(h) that he has violated the code of conduct as may be specified by the regulations.
(4) Any person who acts as an insurance agent in contravention of the provision of this Act, shall be liable to a penalty which may extend to ten thousand rupees and any insurer or any person acting on behalf of an insurer, who appoints any person as an insurance agent not permitted to act as such or transacts any insurance business in India through any such person shall be liable to penalty which may extend to one crore rupees.
(5) The insurer shall be responsible for all the acts and omissions of its agents including violation of code of conduct specified under clause (h) of sub-section (3) and liable to a penalty which may extend to one crore rupees.]1. Subs. by s. 49, ibid., for section 42 (w.e.f. 26-12-2014). | 1 | Appointment of insurance agents (4) Any person who acts as an insurance agent in contravention of the provision of this Act, shall be liable to a penalty which may extend to ten thousand rupees and any insurer or any person acting on behalf of an insurer, who appoints any person as an insurance agent not permitted to act as such or transacts any insurance business in India through any such person shall be liable to penalty which may extend to one crore rupees. |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18174§ionno=42&orderno=80 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 42 | Appointment of insurance agents | 1[42. Appointment of insurance agents. --(1) An insurer may appoint any person to act as insurance agent for the purpose of soliciting and procuring insurance business:
Provided that such person does not suffer from any of the disqualifications mentioned in sub-section (3).
(2) No person shall act as an insurance agent for more than one life insurer, one general insurer, one health insurer and one of each of the other mono-line insurers:
Provided that the Authority shall, while framing regulations, ensure that no conflict of interest is allowed to arise for any agent in representing two or more insurers for whom he may be an agent.
(3) The disqualifications referred to in the proviso to sub-section (1) shall be the following: --
(a) that the person is a minor;
(b) that he is found to be of unsound mind by a court of competent jurisdiction;
(c) that he has been found guilty of criminal misappropriation or criminal breach of trust or cheating or forgery or an abetment of or attempt to commit any such offence by a court of competent jurisdiction:
Provided that where at least five years have elapsed since the completion of the sentence imposed on any person in respect of any such offence, the Authority shall ordinarily declare in respect of such person that his conviction shall cease to operate as a disqualification under this clause;
(d) that in the course of any judicial proceeding relating to any policy of insurance or the winding up of an insurer or in the course of an investigation of the affairs of an insurer it has been found that he has been guilty of or has knowingly participated in or connived at any fraud, dishonesty or misrepresentation against an insurer or insured;
(e) that in the case of an individual, who does not possess the requisite qualifications or practical training or passed the examination, as may be specified by the regulations;
(f) that in the case of a company or firm making, a director or a partner or one or more of its officers or other employees so designated by it and in the case of any other person the chief executive, by whatever name called, or one or more of his employees designated by him, do not possess the requisite qualifications or practical training and have not passed such an examination as required under clauses (e) and (g);
(g) that he has not passed such examination as may be specified by the regulations;
(h) that he has violated the code of conduct as may be specified by the regulations.
(4) Any person who acts as an insurance agent in contravention of the provision of this Act, shall be liable to a penalty which may extend to ten thousand rupees and any insurer or any person acting on behalf of an insurer, who appoints any person as an insurance agent not permitted to act as such or transacts any insurance business in India through any such person shall be liable to penalty which may extend to one crore rupees.
(5) The insurer shall be responsible for all the acts and omissions of its agents including violation of code of conduct specified under clause (h) of sub-section (3) and liable to a penalty which may extend to one crore rupees.]1. Subs. by s. 49, ibid., for section 42 (w.e.f. 26-12-2014). | 2 | Appointment of insurance agents |
https://www.indiacode.nic.in/show-data?actid=AC_CEN_2_33_00044_193804_1523351752525§ionId=18174§ionno=42&orderno=80 | "1938-02-26T00:00:00" | The Insurance Act, 1938 | An Act to consolidate and amend the law relating to the business of insurance. | 193804 | Ministry of Finance | 42 | Appointment of insurance agents | 1[42. Appointment of insurance agents. --(1) An insurer may appoint any person to act as insurance agent for the purpose of soliciting and procuring insurance business:
Provided that such person does not suffer from any of the disqualifications mentioned in sub-section (3).
(2) No person shall act as an insurance agent for more than one life insurer, one general insurer, one health insurer and one of each of the other mono-line insurers:
Provided that the Authority shall, while framing regulations, ensure that no conflict of interest is allowed to arise for any agent in representing two or more insurers for whom he may be an agent.
(3) The disqualifications referred to in the proviso to sub-section (1) shall be the following: --
(a) that the person is a minor;
(b) that he is found to be of unsound mind by a court of competent jurisdiction;
(c) that he has been found guilty of criminal misappropriation or criminal breach of trust or cheating or forgery or an abetment of or attempt to commit any such offence by a court of competent jurisdiction:
Provided that where at least five years have elapsed since the completion of the sentence imposed on any person in respect of any such offence, the Authority shall ordinarily declare in respect of such person that his conviction shall cease to operate as a disqualification under this clause;
(d) that in the course of any judicial proceeding relating to any policy of insurance or the winding up of an insurer or in the course of an investigation of the affairs of an insurer it has been found that he has been guilty of or has knowingly participated in or connived at any fraud, dishonesty or misrepresentation against an insurer or insured;
(e) that in the case of an individual, who does not possess the requisite qualifications or practical training or passed the examination, as may be specified by the regulations;
(f) that in the case of a company or firm making, a director or a partner or one or more of its officers or other employees so designated by it and in the case of any other person the chief executive, by whatever name called, or one or more of his employees designated by him, do not possess the requisite qualifications or practical training and have not passed such an examination as required under clauses (e) and (g);
(g) that he has not passed such examination as may be specified by the regulations;
(h) that he has violated the code of conduct as may be specified by the regulations.
(4) Any person who acts as an insurance agent in contravention of the provision of this Act, shall be liable to a penalty which may extend to ten thousand rupees and any insurer or any person acting on behalf of an insurer, who appoints any person as an insurance agent not permitted to act as such or transacts any insurance business in India through any such person shall be liable to penalty which may extend to one crore rupees.
(5) The insurer shall be responsible for all the acts and omissions of its agents including violation of code of conduct specified under clause (h) of sub-section (3) and liable to a penalty which may extend to one crore rupees.]1. Subs. by s. 49, ibid., for section 42 (w.e.f. 26-12-2014). | 3 | Appointment of insurance agents (5) The insurer shall be responsible for all the acts and omissions of its agents including violation of code of conduct specified under clause (h) of sub-section (3) and liable to a penalty which may extend to one crore rupees.]1.Subs.by s.49, ibid., for section 42 (w.e.f.26-12-2014). |