The Insurance Act `1938

An Act to consolidate and amend the law relating to the business of insurance.
1938
  • PROVISIONS APPLICABLE TO INSURERS

  • 2C
     Prohibition of transaction of insurance business by certain persons
  • 2CA
     Power of Central Government to apply provisions of this Act to Special Economic Zones
  • 2CB
     Properties in India not to be insured with foreign insurers except with the permission of Authority
  • 2D
     Insurers to be subject to this Act while liabilities remain unsatisfied
  • 2E
     [Omitted.]
  • 3
     Registration
  • 3A
     Payment of annual fee by insurer
  • 3B
     Certification of soundness of terms of life insurance business
  • 4
     Minimum limits for annuities and other benefits secured by policies of life insurance
  • 5
     Restriction on name of insurer
  • 6
     Requirements as to capital
  • 6A
     Requirements as to capital structure and voting rights and maintenance of registers beneficial owners of shares
  • 6AA
     [Omitted.]
  • 6B
     Provision for securing compliance with requirements relating to capital structure
  • 6C
     [Omitted.]
  • 7
     [Omitted.]
  • 8
     [Omitted.]
  • 9
     [Omitted.]
  • 10
     Separation of accounts and funds
  • 11
     Accounts and balance-sheet
  • 12
     Audit
  • 13
     Actuarial report and abstract
  • 14
     Record of policies and claims
  • 15
     Submission of returns
  • 16
     [Omitted.]
  • 17
     [Omitted.]
  • 17A
     [Omitted.]
  • 18
     Furnishing reports
  • 19
     Abstract of proceedings of general meetings
  • 20
     Custody and inspection of documents and supply of copies
  • 21
     Powers of Authority regarding returns
  • 22
     Powers of Authority to order revaluation
  • 23
     Evidence of documents
  • 24
     [Omitted.]
  • 25
     Returns to be published in statutory forms
  • 26
     Alterations in the particulars furnished with application for registration to be reported
  • INVESTMENT, LOANS AND MANAGEMENT

  • 27
     Investment of assets
  • 27A
     Further provisions regarding investments
  • 27B
     Provisions regarding investments of assets of insurer carrying general insurance business
  • 27C
     Investment by insurer in certain cases
  • 27D
     Manner and conditions of investment
  • 27E
     Prohibition for investment of funds outside India
  • 28
     Statement and return of investment of assets
  • 29
     Prohibition of loans
  • 30
     Liability of directors, etc.,for loss due to contravention of section 27,27A,27B,27C,27D or section 29
  • 31
     Assets of insurer how to be kept
  • 31A
     Provisions relating to managers, etc
  • 31B
     Power to restrict payment of excessive remuneration
  • 32
     [Omitted.]
  • 32A
     Prohibition of common officers and requirement as to whole-time officers
  • 32B
     Insurance business in rural and social sectors
  • 32C
     Obligations of insurer in respect of rural or unorganised sector and backward classes
  • 32D
     Obligation of insurer in respect of insurance business in third party risks of motor vehicles
  • INVESTIGATION

  • 33
     Power of investigation and inspection by Authority
  • APPOINTMENT OF STAFF

  • 33A
     Power to appoint staff
  • POWER TO ISSUE DIRECTIONS

  • 34
     Power of the Authority to issue directions
  • CONTROL OVER MANAGEMENT

  • 34A
     Amendment of provisions relating to appointments of managing directors, etc., to be subject to previous approval of the Controller
  • 34B
     Power of Authority to remove managerial persons from office
  • 34C
     Power of Authority to appoint additional directors
  • 34D
     Sections 34B and 34C to override other laws
  • 34E
     Further powers
  • 34F
     Power of Authority to issue directions regarding re-insurance treaties, etc
  • 34G
     Omitted
  • 34H
     Search and seizure
  • AMALGAMATION AND TRANSFER OF INSURANCE BUSINESS

  • 35
     Amalgamation and transfer of insurance business
  • 36
     Sanction of amalgamation and transfer by Controller
  • 37
     Statements required after amalgamation and transfer
  • 37A
     Power of Authority to prepare Scheme of Amalgamation
  • ASSGNMENT OR TRANSFER OF POLICIES AND NOMINATIONS

  • 38
     Assignment and transfer of insurance policies
  • 39
     Nomination by policy-holder
  • COMMISSION AND REBATES AND LICENSING OF AGENTS

  • 40
     Prohibition of payment by way of commission or otherwise for procuring business
  • 40A
     [Omitted.]
  • 40B
     Limitation of expenses of management in life insurance business
  • 40C
     Limitation of expenses of management in general insurance business
  • 41
     Prohibition of rebates
  • 42
     Appointment of insurance agents
  • 42A
     Prohibition of insurance business through principal agent, special agent and multilevel marketing
  • 42D
     Issue of registration to intermediary or insurance intermediary
  • 42E
     Commission, brokerage or fee payable to intermediary or insurance intermediary
  • 43
     Register of insurance agents
  • 44
     [Omitted.]
  • 44A
     Power to call for information
  • SPECIAL PROVISIONS OF LAW

  • 45
     Policy not to be called in question on ground of mis-statement after two years
  • 46
     Application of the law in force in India to policies issued in India
  • 47
     Payment of money into Court
  • 47A
     [Omitted.]
  • 48A
     . Insurance agent or intermediary or insurance intermediary not to be director in insurance company
  • 48B
     Further provision regarding directors
  • 48C
     [Omitted.]
  • 49
     Restriction On dividends and bonuses
  • 50
     Notice of options available to the assured on the lapsing of a policy
  • 51
     Supply of copies of proposals and medical reports
  • 52
     Prohibition of business of dividing principle
  • MANAGEMENT BY ADMINISTRATOR

  • 52A
     When Administrator for management of insurance business may be appointed
  • 52B
     Powers and duties of the Administrator
  • 52BB
     Powers of Administrator respecting property liable to attachment under section 106
  • 52C
     Cancellation of contracts and agreements
  • 52D
     Termination of appointment of Administrator
  • 52E
     Finality of decision appointing Administrator
  • 52F
     Penalty for withholding documents or property from Administrator
  • 52G
     Protection of action taken under sections 52A to 52D
  • ACQUISITION OF THE UNDERTAKINGS OF INSURERS IN CERTAIN CASES

  • 52H
     [Omitted.]
  • 52-I
     Omitted.
  • 52J
     [Omitted.]
  • 52K
     [Omitted.]
  • 52L
     [Omitted.]
  • 52M
     [Omitted.]
  • 52N
     [Omitted.]
  • WINDING UP

  • 53
     Winding up by the Court
  • 53A
     Unpaid-up share capital
  • 54
     Voluntary winding up
  • 55
     Valuation of liabilities
  • 56
     Application of surplus assets of life insurance fund in liquidation or insolvency
  • 57
     Winding up of secondary companies
  • 58
     Schemes for partial winding up of insurance companies
  • 59
     [Omitted.]
  • 60
     Notice of policy values
  • 61
     Power of Court to reduce contracts of insurance
  • 61A
     Appeal to National Company Law Appellate Tribunal
  • SPECIAL PROVISIONS RELATING TO EXTERNAL COMPANIES

  • 62
     Power of Central Government to impose reciprocal disabilities on non-Indian companies
  • 63
     Particulars to be filed by insurers established outside India
  • 64
     Books to be kept by insurers established outside India
  • LIFE INSURANCE COUNCIL AND GENERAL INSURANCE COUNCIL AND COMMITTEES THEREOF

  • 64A
     [Omitted.]
  • 64B
     [Omitted.]
  • 64C
     Councils of Life Insurance and General Insurance
  • 64D
     Authorisation to represent in Councils
  • 64E
     Authorities of the Life Insurance Council and the General Insurance Council
  • 64F
     Executive Committees of the Life Insurance Council and the General Insurance Council
  • 64G
     Resignation and filling up of casual vacancies
  • 64H
     Duration and dissolution of Executive Committees
  • 64-I
     Omitted.
  • 64J
     Omitted
  • 64K
     Omitted
  • 64L
     Functions of Executive Committee of General Insurance Council
  • 64M
     Executive Committee of General Insurance Council may advise in controlling expenses
  • 64N
     Power of the Executive Committees to act together in certain cases
  • 64-O
     Omitted.
  • 64P
     [Omitted.]
  • 64Q
     [Omitted.]
  • 64R
     General power of Life Insurance Council and General Insurance Council
  • 64S
     [Omitted.]
  • 64T
     [Omitted.]
  • TARIFF ADVISORY COMMITTEE AND CONTROL OF TARIFF RATES

  • 64U
     Omitted
  • 64UA
     Omitted
  • 64UB
     Omitted
  • 64UC
     Omitted
  • 64UD
     Omitted
  • 64UE
     Omitted
  • 64UF
     Omitted
  • 64UG
     Omitted
  • 64UH
     Omitted
  • 64U-I
     Omitted
  • 64UJ
     Omitted
  • 64UK
     Omitted
  • 64UL
     Omitted
  • 64ULA
     Omitted
  • 64UM
     Surveyors and loss assessors
  • SOLVENCY MARGIN, ADVANCE PAYMENT OF PREMIUM AND RESTRICTIONS ON THE OPENING OF A NEW PLACE OF BUSINESS

  • 64V
     Assets and liabilities how to be valued
  • 64VA
     Sufficiency of assets
  • 64VB
     No risk to be assumed unless premium is received in advance
  • 64VC
     Restrictions on the opening of a new place of business
  • Omitted..

  • 65
     [Omitted.]
  • 65A
     [Omitted.]
  • 66
     [Omitted.]
  • 67
     [Omitted.]
  • 68
     [Omitted.]
  • 69
     [Omitted.]
  • 70
     [Omitted.]
  • 70A
     [Omitted.]
  • 70B
     [Omitted.]
  • 71
     [Omitted.]
  • 72
     [Omitted.]
  • 73
     [Omitted.]
  • 73A
     [Omitted.]
  • 74
     [Omitted.]
  • 75
     [Omitted.]
  • 76
     [Omitted.]
  • 77
     [Omitted.]
  • 78
     [Omitted.]
  • 79
     [Omitted.]
  • 80
     [Omitted.]
  • 81
     [Omitted.]
  • 82
     [Omitted.]
  • 83
     [Omitted.]
  • 84
     [Omitted.]
  • 85
     [Omitted.]
  • 86
     [Omitted.]
  • 87
     [Omitted.]
  • 87A
     [Omitted.]
  • 88
     [Omitted.]
  • 89
     [Omitted.]
  • 90
     [Omitted.]
  • 90A
     [Omitted.]
  • 91
     [Omitted.]
  • 92
     [Omitted.]
  • 93
     [Omitted.]
  • 94
     [Omitted.]
  • 94A
     Omitted
  • Omitted..

  • 95
     [Omitted.]
  • Omitted..

  • 96
     [Omitted.]
  • 97
     [Omitted.]
  • 98
     [Omitted.]
  • 98A
     [Omitted.]
  • 99
     [Omitted.]
  • 100
     [Omitted.]
  • 101
     [Omitted.]
  • RE-INSURANCE

  • 101A
     Re-insurance with Indian re-insurers
  • 101B
     Advisory Committee
  • 101C
     Examination of re-insurance treaties
  • MISCELLANEOUS

  • 102
     Penalty for default in complying with, or act in contravention of this Act
  • 103
     Penalty for carrying on insurance business in contravention of sections 3
  • 104
     Penalty for contravention of sections 27, 27A, 27B, 27D and 27E
  • 105
     Wrongfully obtaining or withholding property
  • 105A
     Offences by companies
  • 105B
     Penalty for failure to comply with sections 32B, 32C and 32D
  • 105C
     Power to adjudicate
  • 105D
     Factors to be taken into account by the adjudicating officer
  • 106
     Power of Court to order restoration of property of insurer or compensation in certain cases
  • 106A
     Notice to and hearing of Authority
  • 107
     [Omitted.]
  • 107A
     Chairman, etc., to be public servants
  • 108
     Power of Court to grant relief
  • 109
     Cognizance of offences
  • 110
     Appeal to Securities Appellate Tribunal
  • 110A
     Delegation of powers and duties of Chairperson of the Authority
  • 110B
     Signature of documents
  • 110C
     Power to call for information
  • 110D
     Certain claims for compensation barred
  • 110E
     [Omitted.]
  • 110F
     Provisions applicable to state Governments, etc
  • 110G
     [Omitted.]
  • 110H
     [Omitted.]
  • 110HA
     Penalty to be recoverable as arrear of land revenue
  • 111
     Service of notices
  • 112
     Declaration of interium bonuses
  • 113
     Acquisition of surrender value by policy
  • 114
     Power of Central Government to make rules
  • 114A
     Power of Authority to make regulations
  • 115
     Alteration of forms
  • 116
     Power to exempt from certain requirements
  • 116A
     Summary of returns to be published
  • 117
     Saving of provisions of Indian Companies Act, 191
  • 118
     Exemption
  • 119
     Inspection and supply of copies of published prospectus, etc
  • 120
     Determination of market value of securities deposited under this Act
  • 121
     Repealed
  • 122
     Repealed
  • 123
     Repealed