The Insurance Act

An Act to consolidate and amend the law relating to the business of insurance.

1938

List of Chapters & Sections

PRELIMINARY PROVISIONS APPLICABLE TO INSURERS INVESTMENT, LOANS AND MANAGEMENT INVESTIGATION APPOINTMENT OF STAFF POWER TO ISSUE DIRECTIONS CONTROL OVER MANAGEMENT AMALGAMATION AND TRANSFER OF INSURANCE BUSINESS ASSGNMENT OR TRANSFER OF POLICIES AND NOMINATIONS COMMISSION AND REBATES AND LICENSING OF AGENTS SPECIAL PROVISIONS OF LAW MANAGEMENT BY ADMINISTRATOR ACQUISITION OF THE UNDERTAKINGS OF INSURERS IN CERTAIN CASES WINDING UP SPECIAL PROVISIONS RELATING TO EXTERNAL COMPANIES LIFE INSURANCE COUNCIL AND GENERAL INSURANCE COUNCIL AND COMMITTEES THEREOF TARIFF ADVISORY COMMITTEE AND CONTROL OF TARIFF RATES SOLVENCY MARGIN, ADVANCE PAYMENT OF PREMIUM AND RESTRICTIONS ON THE OPENING OF A NEW PLACE OF BUSINESS Omitted.. Omitted.. Omitted.. RE-INSURANCE MISCELLANEOUS

PROVISIONS APPLICABLE TO INSURERS

Prohibition of transaction of insurance business by certain persons

Power of Central Government to apply provisions of this Act to Special Economic Zones

Properties in India not to be insured with foreign insurers except with the permission of Authority

Insurers to be subject to this Act while liabilities remain unsatisfied

Payment of annual fee by insurer

Certification of soundness of terms of life insurance business

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

Restriction on name of insurer

Requirements as to capital

Requirements as to capital structure and voting rights and maintenance of registers beneficial owners of shares

Provision for securing compliance with requirements relating to capital structure

Separation of accounts and funds

Accounts and balance-sheet

Actuarial report and abstract

Record of policies and claims

Submission of returns

Furnishing reports

Abstract of proceedings of general meetings

Custody and inspection of documents and supply of copies

Powers of Authority regarding returns

Powers of Authority to order revaluation

Evidence of documents

Returns to be published in statutory forms

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

INVESTMENT, LOANS AND MANAGEMENT

Investment of assets

Further provisions regarding investments

Provisions regarding investments of assets of insurer carrying general insurance business

Investment by insurer in certain cases

Manner and conditions of investment

Prohibition for investment of funds outside India

Statement and return of investment of assets

Prohibition of loans

Liability of directors, etc.,for loss due to contravention of section 27,27A,27B,27C,27D or section 29

Assets of insurer how to be kept

Provisions relating to managers, etc

Power to restrict payment of excessive remuneration

Prohibition of common officers and requirement as to whole-time officers

Insurance business in rural and social sectors

Obligations of insurer in respect of rural or unorganised sector and backward classes

Obligation of insurer in respect of insurance business in third party risks of motor vehicles

INVESTIGATION

Power of investigation and inspection by Authority

APPOINTMENT OF STAFF

Power to appoint staff

POWER TO ISSUE DIRECTIONS

Power of the Authority to issue directions

CONTROL OVER MANAGEMENT

Amendment of provisions relating to appointments of managing directors, etc., to be subject to previous approval of the Controller

Power of Authority to remove managerial persons from office

Power of Authority to appoint additional directors

Sections 34B and 34C to override other laws

Power of Authority to issue directions regarding re-insurance treaties, etc

Search and seizure

AMALGAMATION AND TRANSFER OF INSURANCE BUSINESS

Amalgamation and transfer of insurance business

Sanction of amalgamation and transfer by Controller

Statements required after amalgamation and transfer

Power of Authority to prepare Scheme of Amalgamation

ASSGNMENT OR TRANSFER OF POLICIES AND NOMINATIONS

Assignment and transfer of insurance policies

Nomination by policy-holder

COMMISSION AND REBATES AND LICENSING OF AGENTS

Prohibition of payment by way of commission or otherwise for procuring business

Limitation of expenses of management in life insurance business

Limitation of expenses of management in general insurance business

Prohibition of rebates

Appointment of insurance agents

Prohibition of insurance business through principal agent, special agent and multilevel marketing

Issue of registration to intermediary or insurance intermediary

Commission, brokerage or fee payable to intermediary or insurance intermediary

Register of insurance agents

Power to call for information

SPECIAL PROVISIONS OF LAW

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

Application of the law in force in India to policies issued in India

Payment of money into Court

. Insurance agent or intermediary or insurance intermediary not to be director in insurance company

Further provision regarding directors

Restriction On dividends and bonuses

Notice of options available to the assured on the lapsing of a policy

Supply of copies of proposals and medical reports

Prohibition of business of dividing principle

MANAGEMENT BY ADMINISTRATOR

When Administrator for management of insurance business may be appointed

Powers and duties of the Administrator

Powers of Administrator respecting property liable to attachment under section 106

Cancellation of contracts and agreements

Termination of appointment of Administrator

Finality of decision appointing Administrator

Penalty for withholding documents or property from Administrator

Protection of action taken under sections 52A to 52D

ACQUISITION OF THE UNDERTAKINGS OF INSURERS IN CERTAIN CASES

WINDING UP

Winding up by the Court

Unpaid-up share capital

Voluntary winding up

Valuation of liabilities

Application of surplus assets of life insurance fund in liquidation or insolvency

Winding up of secondary companies

Schemes for partial winding up of insurance companies

Notice of policy values

Power of Court to reduce contracts of insurance

Appeal to National Company Law Appellate Tribunal

SPECIAL PROVISIONS RELATING TO EXTERNAL COMPANIES

Power of Central Government to impose reciprocal disabilities on non-Indian companies

Particulars to be filed by insurers established outside India

Books to be kept by insurers established outside India

LIFE INSURANCE COUNCIL AND GENERAL INSURANCE COUNCIL AND COMMITTEES THEREOF

Councils of Life Insurance and General Insurance

Authorisation to represent in Councils

Authorities of the Life Insurance Council and the General Insurance Council

Executive Committees of the Life Insurance Council and the General Insurance Council

Resignation and filling up of casual vacancies

Duration and dissolution of Executive Committees

Functions of Executive Committee of General Insurance Council

Executive Committee of General Insurance Council may advise in controlling expenses

Power of the Executive Committees to act together in certain cases

General power of Life Insurance Council and General Insurance Council

TARIFF ADVISORY COMMITTEE AND CONTROL OF TARIFF RATES

Surveyors and loss assessors

SOLVENCY MARGIN, ADVANCE PAYMENT OF PREMIUM AND RESTRICTIONS ON THE OPENING OF A NEW PLACE OF BUSINESS

Assets and liabilities how to be valued

Sufficiency of assets

No risk to be assumed unless premium is received in advance

Restrictions on the opening of a new place of business

Omitted..

Omitted..

Omitted..

RE-INSURANCE

Re-insurance with Indian re-insurers

Advisory Committee

Examination of re-insurance treaties

MISCELLANEOUS

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

Penalty for carrying on insurance business in contravention of sections 3

Penalty for contravention of sections 27, 27A, 27B, 27D and 27E

Wrongfully obtaining or withholding property

Offences by companies

Penalty for failure to comply with sections 32B, 32C and 32D

Power to adjudicate

Factors to be taken into account by the adjudicating officer

Power of Court to order restoration of property of insurer or compensation in certain cases

Notice to and hearing of Authority

Chairman, etc., to be public servants

Power of Court to grant relief

Cognizance of offences

Appeal to Securities Appellate Tribunal

Delegation of powers and duties of Chairperson of the Authority

Signature of documents

Power to call for information

Certain claims for compensation barred

Provisions applicable to state Governments, etc

Penalty to be recoverable as arrear of land revenue

Service of notices

Declaration of interium bonuses

Acquisition of surrender value by policy

Power of Central Government to make rules

Power of Authority to make regulations

Alteration of forms

Power to exempt from certain requirements

Summary of returns to be published

Saving of provisions of Indian Companies Act, 191

Inspection and supply of copies of published prospectus, etc

Determination of market value of securities deposited under this Act