Lawgist logo - L!

LAWGIST

The General Insurance Business (Nationalisation) Act

An Act to provide for the acquisition and transfer of shares of Indian insurance companies and undertakings of other existing insurers in order to serve better the needs of the economy by securing the development of general insurance business in the best interests of the community and to ensure that the operation of the economic system does not result in the concentration of wealth to the common detriment, for the regulation and control of such business and for matters connected therewith or incidental thereto.
1972
List of Chapters & Sections

  1. PRELIMINARY

  2. 1
     Short title
  3. 2
     Declaration as to the policy of the State
  4. 3
     Definitions

  • TRANSFER TO PUBLIC OWNERSHIP OF GENERAL INSURANCE BUSINESS

  • 4
     Transfer of shares of Indian insurance companies
  • 5
     Transfer of undertakings of other existing insurers
  • 6
     Effect of transfer of undertakings
  • 7
     Transfer of service of existing employees in certain cases
  • 8
     Provident, superannuation, welfare and other funds

  • GENERAL INSURANCE CORPORATION OF INDIA

  • 9
     Formation of General Insurance Corporation of India
  • 10
     Transfer to Corporation of shares vested in Central Government
  • 10A
     Transfer to Central Government of shares vested in Corporation
  • 10B
     Enhancement of equity capital of General Insurance companies

  • AMOUNTS TO BE PAID FOR ACQUISITIONS

  • 11
     Amounts to be paid for transfer and vesting of shares or undertakings
  • 12
     Disbursement of amounts by Corporation
  • 13
     Mode of payment
  • 14
     Amount payable to shareholders may be paid to named persons instead in certain cases
  • 15
     Payment into court in case of rival claims

  • SCHEME FOR REORGANISATION OF GENERAL INSURANCE BUSINESS

  • 16
     Schemes for mergers of companies, etc
  • 17
     Laying of schemes and notifications before Parliament

  • TERMS AND CONDITIONS OF SERVICE OF OFFICERS AND OTHER EMPLOYEES

  • 17A
     Power of Central Government to regulate the terms and conditions of service of officers and other employees

  • FUNCTIONS OF CORPORATION AND ACQUIRING COMPANIES AND THEIR MANAGEMENT

  • 18
     Functions of Corporation
  • 19
     Functions of acquiring companies
  • 20
     Balance of profit how to be utilised
  • 21
     Interim provisions for management of Indian insurance companies
  • 22
     Power of Central Government to transfer employees
  • 23
     Power of Central Government to issue directions

  • MISCELLANEOUS

  • 24
     Acquiring companies to have the exclusive privilege of carrying on general insurance business
  • 24A
     Exclusive privilege of Corporation and acquiring companies to cease
  • 25
     Omitted
  • 26
     Acquiring companies and income-tax
  • 27
     Power to reduce amounts of insurance in certain ease
  • 28
     Right of acquiring company to seek relief in respect of certain transactions
  • 29
     Duty to deliver possession of property and documents relating thereto
  • 30
     Penalty for withholding property, etc
  • 31
     Officers and employees of Corporation or of acquiring companies to be public servants
  • 32
     Indemnit
  • 33
     Dissolution of Corporation and acquiring companie
  • 34
     Reference to existing insurer in other law
  • 35
     Application of Insurance Act
  • 35A
     Omitted
  • 36
     Exemption
  • 37
     Vacancies, etc., not to invalidate proceedings
  • 38
     Protection of action taken in good faith
  • 39
     Power to make rules
  • 40
     Repealed