Lawgist41Prohibition of rebates
(1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to 1[take out or renew or continue] an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing 2[or continuing] a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer:
1[Provided that acceptance by an insurance agent of commission in connection with a policy of life insurance taken out by himself on his own life shall not be deemed to be acceptance of a rebate of premium within the meaning of this sub-section if at the time of such acceptance the insurance agent satisfies the prescribed conditions establishing that he is a bona fide insurance agent employed by the insurer.]
3[(2) Any person making default in complying with the provisions of this section shall be liable for a penalty which may extend to ten lakh rupees.]
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1. Subs. by Act 13 of 1941, s. 27, for effect or renew (w.e.f. 8-4-1941).
2. Ins. by s. 27, ibid, (w.e.f. 8-4-1941).
3. Subs. by Act 5 of 2015, s. 48, for sub-section (2) (w.e.f. 26-12-2014).
- 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
