INSURANCE ACT, 1938

INSURANCE ACT, 1938

S.1 Short title, extent and commencement

S.2 Definitions

S.2(a) Interpretation of certain words and expressions

S.2(b) Appointment of Controller of Insurance

S.2(c) Power of Central Government to apply provisions of this Act to Special Economic Zones

S.3 Registration

S.3(a) Renewal of registration

S.3(b) Certification of soundness of terms of life insurance business

S.4 Minimum limits for annuities and other benefits secured by policies of life insurance

S.5 Restriction on name of insurer

S.6 Requirement as to capital

S.6(a) Requirements as to capital structure and voting rights and maintenance of registers of beneficial owners of shares

S.6(a)(a) Manner of divesting excess shareholding by promoter in certain cases

S.6(b) Provision for securing compliance with requirements relating to capital structure

S.6(c) Conversion of company limited by shares into company limited by guarantee

S.7 Deposits

S.8 Reservation of deposits

S.9 Refund of deposit

S.10 Separation of accounts and funds

S.11 Accounts and balance-sheet

S.12 Audit

S.13 Actuarial report and abstract

S.14 Register of policies and register of claims

S.15 Submission of returns

S.16 Returns by insurers established outside India

S.17 Exemption from certain provisions of the Indian Companies Act, 1913

S.18 Furnishing reports

S.19 Abstract of proceedings of general meetings

S.20 Custody and inspection of documents and supply of copies

S.21 Powers of 1[Authority] regarding returns

S.22 Powers of 1[Authority] to order revaluation

S.23 Evidence of documents

S.24 Summary of returns to be published

S.25 Returns to be published in statutory forms

S.26 Alterations in the particulars furnished with application for registration to be reported

S.27 Investment of assets

S.27(a) Further provisions regarding investments

S.27(b) Further provisions regarding investments

S.27(c) Prohibition for investment of funds outside India

S.27(d) Manner and conditions of investment

S.28 Statement of investment of assets

S.28(a) Return of investments relating to controlled fund and changes therein

S.28(b) Returns of investments relating to the assets and changes therein

S.29 Prohibition of loans

S.30 Liability of directors, etc., for loss due to contravention of sections 27, 1[27A], 2[27B] and 29

S.31 Assets of insurer how to be kept

S.32 Limitation on employment of managing agents and on the remuneration payable to them

S.32(a) Prohibition of common officers and requirement as to whole-time officers

S.32(b) Insurance business in rural or social sector

S.32(c) Obligations of insurer in respect of rural or unorganised sector and backward classes

S.33 Power of investigation and inspection by Authority

S.33(a) Power to appoint staff

S.34 Power of the 1[Authority] to issue directions

S.34(a) Amendment of provisions relating to appointments of managing directors, etc., to be subject to previous approval of the 1[Authority]

S.34(b) Power of 2[Authority] to remove managerial persons from office

S.34(c) Power of 1[Authority] to appoint additional directors

S.34(d) Sections 34B and 34C to override other laws

S.34(e) Further powers

S.34(f) Power of 1[Authority] to issue directions regarding re-insurance treaties, etc.

S.34(g) Power of 2[Authority] to order closure of foreign branches

S.34(h) Search and seizure

S.35 Amalgamation and transfer of insurance business

S.36 Sanction of amalgamation and transfer by 1[Authority]

S.37 Statements required after amalgamation and transfer

S.37(a) Power of 2[Authority] to prepare Scheme of Amalgamation

S.38 Assignment and transfer of insurance policies

S.39 Nomination by policy-holder

S.40 Prohibition of payment by way of commission or otherwise for procuring business

S.40(a) Limitation of expenditure on commission

S.40(b) Limitation of expenses of management in life insurance business

S.40(c) Limitation of expenses of management in general insurance business

S.41 Prohibition of rebates

S.42 Licensing of insurance agents

S.42(a) Registration of principal agents, chief agents and special agents

S.42(b) Regulation of employment of principal agents

S.42© Regulation of employment of chief agents and special agents

S.42(d) Issue of licence to intermediary or insurance intermediary

S.42(e) Commission, brokerage or fee payable to intermediary or insurance intermediary

S.43 Register of insurance agents

S.44 Prohibition of cessation of payments of commission

S.44(a) Power to call for information

S.45 Policy not to be called in question on ground of mis-statement after two years

S.46 Application of the law in force in India to policies issued in India

S.47 Payment of money into court

S.47(a) Claims on small life insurance policies

S.48 Directors of insurers being companies

S.48(a) Life insurance agents not to be directors of life insurance companies

S.48(b) Further provision regarding directors

S.48(c) Appointment of additional directors

S.49 Restriction on dividends and bonus

S.50 Notice of options available to the assured on the lapsing of a policy

S.51 Supply of copies of proposals and medical reports

S.52 Prohibition of business on dividing principle

S.52(a) When Administrator for management of insurance business may be appointed

S.52(b) Powers and duties of the Administrator

S.52(b)(b) Powers of Administrator respecting property liable to attachment under section 106

S.52(d) Termination of appointment of Administrator

S.52(e) Finality of decision appointing Administrator

S.52(f) Penalty for withholding documents of property from Administrator

S.52(h) Power of Central Government to acquire undertakings of insurers in certain cases

S.52(i) Power of Central Government to make Scheme

S.52(j) Compensation to be given to the acquired insurer

S.52(k) Constitution of the Tribunal

S.52(l) Tribunal to have powers of Civil Court

S.52(m) Procedure of the Tribunal

S.52(n) Special provisions for the dissolution of acquired insurers

S.52© Cancellation of contracts and agreements

S.53 Winding up by the court

S.53(a) Unpaid-up share capital

S.54 Voluntary winding up

S.55 Valuation of liabilities

S.56 Application of surplus assets of life insurance fund in liquidation or insolvency

S.57 Winding up of secondary companies

S.58 Scheme for partial winding up of insurance companies

S.59 Return of deposits

S.60 Notice of policy values

S.61 Power of Tribunal to reduce contracts of insurance

S.61(a) Appeal to National Company Law Appellate Tribunal

S.62 Power of Central Government to impose reciprocal disabilities on non-lndian companies

S.63 Particulars to be filed by insurers established outside India

S.64 Books to be kept by insurers established outside India

S.64(a) Incorporation of the Insurance Association of India

S.64(b) Entry of names of members in the register

S.64(c) Councils of the Insurance Association of India

S.64(e) Authorities of the Life Insurance Council and the General Insurance Council

S.64(f) Executive Committees of the Life Insurance Council and the General Insurance Council

S.64(g) Resignation and filling up of casual vacancies

S.64(h) Duration and dissolution of Executive Committees

S.64(i) Power of Executive Committee of Life Insurance Council to hold examinations for insurance agents

S.64(j) Functions of Executive Committee of Life Insurance Council

S.64(k) Executive Committee of Life Insurance Council may advise in controlling expenses

S.64(l) Functions of the Executive Committee of General Insurance Council

S.64(m) Executive Committee of General Insurance Council may advise in controlling expenses

S.64(o) Power of General Insurance Council to regulate rates of insurance, etc.

S.64(p) Regional Councils

S.64(q) Functions of the Regional Councils

S.64(r) General powers of Life Insurance Council and General Insurance Council

S.64(s) Power of Central Government to remove difficulties

S.64(t) Power to exempt

S.64(u) Establishment of Tariff Advisory Committee

S.64(u)(a) Composition of the Advisory Committee

S.64(u)(b) Power to make rules in respect of matters in this Part

S.64(u)(d) Transitional provisions

S.64(u)(e) Power of the Advisory Committee to require information, etc.

S.64(u)(f) Assets and liabilities of the General Insurance Council to vest in the Advisory Committee

S.64(u)(g) Contracts, etc., to be effective by or against the Advisory Committee

S.64(u)(h) Employees, etc., to continue

S.64(u)(i) Duty of person having custody or control of property to deliver such property to the Advisory Committee

S.64(u)(j) Power of the Advisory Committee to constitute Regional Committees

S.64(u)(k) Levy of fees by the Advisory Committee

S.64(u)(l) Power to remove difficulties

S.64(u)(m) Licensing of surveyors and loss assessors

S.64(u)© Power of the Advisory Committee to regulate rates, advantages, etc.

S.64(v) Assets and liabilities how to be valued

S.64(v)(a) Sufficiency of assets

S.64(v)(b) No risk to be assumed unless premium is received in advance

S.64(v)© Restrictions on the opening of a new place of business

S.65 Definition of “provident society

S.66 Restrictions on provident societies

S.67 Name

S.68 Insurable interest

S.69 Dividing business

S.70 Registration

S.70(a) Renewal of registration

S.70(b) Supplementary information and reports of alterations in particulars furnished with application for registration

S.71 Certain provisions of Part II to apply to provident societies

S.72 Working Capital

S.73 Deposits

S.73(a) Restriction on name of provident society

S.74 Rules

S.75 Amendment of rules

S.76 Supply of copy of rules

S.77 Registered office

S.78 Publication of authorised capital to contain also subscribed and paid-up capital

S.79 Registers and books

S.80 Revenue account, balance-sheet and annual statements

S.81 Actuarial report and abstract

S.82 Submission of returns to 1[Authority]

S.83 Actuarial examination of schemes

S.84 Separation of accounts and funds

S.85 Investment funds

S.86 Inspection of books

S.87 Inquiry by or on behalf of Authority

S.87(a) Amalgamation and transfer of insurance business

S.88 Winding up by court and voluntary winding up

S.89 Reduction of Insurance contracts

S.90 Appointment of liquidator

S.91 Powers of liquidator

S.92 Procedure at liquidation

S.93 Dissolution of provident society

S.94 Nominations and assignments

S.94(a) Insurance co-operative society to be an insurer

S.95 Definitions

S.96 Application of Act to Mutual Insurance Companies and Co-operative Life Insurance Societies

S.97 Working capital of Mutual Insurance Companies and Co-operative Life Insurance Societies

S.98 Deposits to be made by Mutual Insurance Companies and Co-operative Life Insurance Societies

S.98(a) Prohibition of loans

S.99 Transferees and assignees of policies not to become members

S.100 Publication of notices and documents of Mutual Insurance Companies and Co-operative Life Insurance Societies

S.101 Supply of documents to members

S.101(a) Re-insurance with Indian re-insurers

S.101(b) Advisory Committee

S.101(c) Examination of re-insurance treaties

S.102 Penalty for default in complying with, or act in contravention of, this Act

S.103 Penalty for carrying on insurance business in contravention of sections 3, 7 and 98

S.104 Penalty for false statement in document

S.105 Wrongfully obtaining or withholding property

S.105(a) Offences by companies

S.105(b) Penalty for failure to comply with section 32B

S.105(c) Penalty for failure to comply with section 32C

S.106 Power of court to order restoration of property of insurer or compensation in certain cases

S.106(a) Notice to and hearing of 2[Authority]

S.107 Previous sanction of Advocate-General for institution of proceedings

S.107(a) Chairman, etc. to be public servant

S.108 Power of court to grant relief

S.109 Cognizance of offences

S.110 Appeals

S.110(a) Delegation of powers and duties of 2[Chairperson of the Authority

S.110(b) Signature of documents

S.110(c) Power to call for information

S.110(d) Certain claims for compensation barred

S.110(e) Sections 3A, 27B, 28B, 33, etc., to apply to general insurance business of the Life Insurance Corporation of India

S.110(f) Provisions applicable to State Governments, etc.

S.110(g) Constitution of Consultative Committee

S.110(h) Appeals

S.111 Service of notices

S.112 Declaration of interim bonuses

S.113 Acquisition of surrender values by policy

S.114 Power of Central Government to make rules

S.114(a) Power of Authority to make regulations

S.115 Alteration of forms

S.116 Power to exempt from certain requirements

S.116(a) Summary of returns to be published

S.117 Saving of provisions of Indian Companies Act, 1913

S.118 Exemptions

S.119 Inspection and supply of copies of published prospectus, etc.

S.120 Determination of market value of securities deposited under this Act

S.121 Repealed

S.122 Repealed

S.123 Repeals

Sch.I .

Sch.II .

Sch.III .

Sch.IV .

Sch.V REGULATIONS FOR PREPARING STATEMENTS OF BUSINESS IN FORCE AND REQUIREMENTS APPLICABLE TO SUCH STATEMENTS

Sch.VI TERMS DEEMED TO BE INCLUDED IN EVERY CONTRACT BETWEEN AN INSURER CARRYING ON GENERAL INSURANCE BUSINESS AND A PRINCIPAL AGENT

Sch.VII RULE AS TO THE VALUATION OF THE LIABILITIES OF AN INSURER IN INSOLVENCY OR LIQUIDATION

Sch.VIII PRINCIPLES OF COMPENSATION

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