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
PRELIMINARY
PROVISIONS APPLICABLE TO INSURERS
2CProhibition of transaction of insurance business by certain persons2CAPower of Central Government to apply provisions of this Act to Special Economic Zones2CBProperties in India not to be insured with foreign insurers except with the permission of Authority2DInsurers to be subject to this Act while liabilities remain unsatisfied2E[Omitted.]3Registration3APayment of annual fee by insurer3BCertification of soundness of terms of life insurance business4Minimum limits for annuities and other benefits secured by policies of life insurance5Restriction on name of insurer6Requirements as to capital6ARequirements as to capital structure and voting rights and maintenance of registers beneficial owners of shares6AA[Omitted.]6BProvision for securing compliance with requirements relating to capital structure6C[Omitted.]7[Omitted.]8[Omitted.]9[Omitted.]10Separation of accounts and funds11Accounts and balance-sheet12Audit13Actuarial report and abstract14Record of policies and claims15Submission of returns16[Omitted.]17[Omitted.]17A[Omitted.]18Furnishing reports19Abstract of proceedings of general meetings20Custody and inspection of documents and supply of copies21Powers of Authority regarding returns22Powers of Authority to order revaluation23Evidence of documents24[Omitted.]25Returns to be published in statutory forms26Alterations in the particulars furnished with application for registration to be reportedINVESTMENT, LOANS AND MANAGEMENT
27Investment of assets27AFurther provisions regarding investments27BProvisions regarding investments of assets of insurer carrying general insurance business27CInvestment by insurer in certain cases27DManner and conditions of investment27EProhibition for investment of funds outside India28Statement and return of investment of assets29Prohibition of loans30Liability of directors, etc.,for loss due to contravention of section 27,27A,27B,27C,27D or section 2931Assets of insurer how to be kept31AProvisions relating to managers, etc31BPower to restrict payment of excessive remuneration32[Omitted.]32AProhibition of common officers and requirement as to whole-time officers32BInsurance business in rural and social sectors32CObligations of insurer in respect of rural or unorganised sector and backward classes32DObligation of insurer in respect of insurance business in third party risks of motor vehiclesINVESTIGATION
APPOINTMENT OF STAFF
POWER TO ISSUE DIRECTIONS
CONTROL OVER MANAGEMENT
34AAmendment of provisions relating to appointments of managing directors, etc., to be subject to previous approval of the Controller34BPower of Authority to remove managerial persons from office34CPower of Authority to appoint additional directors34DSections 34B and 34C to override other laws34EFurther powers34FPower of Authority to issue directions regarding re-insurance treaties, etc34GOmitted34HSearch and seizureAMALGAMATION AND TRANSFER OF INSURANCE BUSINESS
ASSGNMENT OR TRANSFER OF POLICIES AND NOMINATIONS
COMMISSION AND REBATES AND LICENSING OF AGENTS
40Prohibition of payment by way of commission or otherwise for procuring business40A[Omitted.]40BLimitation of expenses of management in life insurance business40CLimitation of expenses of management in general insurance business41Prohibition of rebates42Appointment of insurance agents42AProhibition of insurance business through principal agent, special agent and multilevel marketing42DIssue of registration to intermediary or insurance intermediary42ECommission, brokerage or fee payable to intermediary or insurance intermediary43Register of insurance agents44[Omitted.]44APower to call for informationSPECIAL PROVISIONS OF LAW
45Policy not to be called in question on ground of mis-statement after two years46Application of the law in force in India to policies issued in India47Payment of money into Court47A[Omitted.]48A. Insurance agent or intermediary or insurance intermediary not to be director in insurance company48BFurther provision regarding directors48C[Omitted.]49Restriction On dividends and bonuses50Notice of options available to the assured on the lapsing of a policy51Supply of copies of proposals and medical reports52Prohibition of business of dividing principleMANAGEMENT BY ADMINISTRATOR
52AWhen Administrator for management of insurance business may be appointed52BPowers and duties of the Administrator52BBPowers of Administrator respecting property liable to attachment under section 10652CCancellation of contracts and agreements52DTermination of appointment of Administrator52EFinality of decision appointing Administrator52FPenalty for withholding documents or property from Administrator52GProtection of action taken under sections 52A to 52DACQUISITION OF THE UNDERTAKINGS OF INSURERS IN CERTAIN CASES
WINDING UP
53Winding up by the Court53AUnpaid-up share capital54Voluntary winding up55Valuation of liabilities56Application of surplus assets of life insurance fund in liquidation or insolvency57Winding up of secondary companies58Schemes for partial winding up of insurance companies59[Omitted.]60Notice of policy values61Power of Court to reduce contracts of insurance61AAppeal to National Company Law Appellate TribunalSPECIAL PROVISIONS RELATING TO EXTERNAL COMPANIES
LIFE INSURANCE COUNCIL AND GENERAL INSURANCE COUNCIL AND COMMITTEES THEREOF
64A[Omitted.]64B[Omitted.]64CCouncils of Life Insurance and General Insurance64DAuthorisation to represent in Councils64EAuthorities of the Life Insurance Council and the General Insurance Council64FExecutive Committees of the Life Insurance Council and the General Insurance Council64GResignation and filling up of casual vacancies64HDuration and dissolution of Executive Committees64-IOmitted.64JOmitted64KOmitted64LFunctions of Executive Committee of General Insurance Council64MExecutive Committee of General Insurance Council may advise in controlling expenses64NPower of the Executive Committees to act together in certain cases64-OOmitted.64P[Omitted.]64Q[Omitted.]64RGeneral power of Life Insurance Council and General Insurance Council64S[Omitted.]64T[Omitted.]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..
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.]94AOmittedOmitted..
Omitted..
RE-INSURANCE
MISCELLANEOUS
102Penalty for default in complying with, or act in contravention of this Act103Penalty for carrying on insurance business in contravention of sections 3104Penalty for contravention of sections 27, 27A, 27B, 27D and 27E105Wrongfully obtaining or withholding property105AOffences by companies105BPenalty for failure to comply with sections 32B, 32C and 32D105CPower to adjudicate105DFactors to be taken into account by the adjudicating officer106Power of Court to order restoration of property of insurer or compensation in certain cases106ANotice to and hearing of Authority107[Omitted.]107AChairman, etc., to be public servants108Power of Court to grant relief109Cognizance of offences110Appeal to Securities Appellate Tribunal110ADelegation of powers and duties of Chairperson of the Authority110BSignature of documents110CPower to call for information110DCertain claims for compensation barred110E[Omitted.]110FProvisions applicable to state Governments, etc110G[Omitted.]110H[Omitted.]110HAPenalty to be recoverable as arrear of land revenue111Service of notices112Declaration of interium bonuses113Acquisition of surrender value by policy114Power of Central Government to make rules114APower of Authority to make regulations115Alteration of forms116Power to exempt from certain requirements116ASummary of returns to be published117Saving of provisions of Indian Companies Act, 191118Exemption119Inspection and supply of copies of published prospectus, etc120Determination of market value of securities deposited under this Act121Repealed122Repealed123Repealed