Bare Acts

The Insurance Act, 1938

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

बीमा अधिनियम, 1938

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Act Details

Act Number:

Act Year:

1938

Location:

Enactment Date:

2/26/1938

Enforcement Date:

01-07-1939

Ministry:

Ministry of Finance

Department:

Department of Financial Services

Full List of Insurance Act Sections

PRELIMINARY

Section 1 to Section 2B

Section 1

Short title, extent and commencement.

Section 2

Definitions.

Section 2A

Interpretation of certain words and expressions.

Section 2B

Appointment of Controller of Insurance.

PROVISIONS APPLICABLE TO INSURERS

Section 2C to Section 26

Section 2C

Prohibition of transaction of insurance business by certain persons.

Section 2CA

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

Section 2CB

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

Section 2D

Insurers to be subject to this Act while liabilities remain unsatisfied.

Section 2E

[Omitted.].

Section 3

Registration.

Section 3A

Payment of annual fee by insurer.

Section 3B

Certification of soundness of terms of life insurance business.

Section 4

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

Section 5

Restriction on name of insurer.

Section 6

Requirements as to capital.

Section 6A

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

Section 6AA

[Omitted.].

Section 6B

Provision for securing compliance with requirements relating to capital structure.

Section 6C

Section 7

Section 8

Section 9

Section 10

Separation of accounts and funds.

Section 11

Accounts and balance-sheet.

Section 12

Audit.

Section 13

Actuarial report and abstract.

Section 14

Record of policies and claims.

Section 15

Submission of returns.

Section 16

Section 17

Section 17A

Section 18

Section 19

Abstract of proceedings of general meetings.

Section 20

Custody and inspection of documents and supply of copies.

Section 21

Powers of Authority regarding returns.

Section 22

Powers of Authority to order revaluation.

Section 23

Evidence of documents.

Section 24

[Omitted.].

Section 25

Returns to be published in statutory forms.

Section 26

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

INVESTMENT, LOANS AND MANAGEMENT

Section 27 to Section 32D

Section 27

Investment of assets.

Section 27A

Further provisions regarding investments.

Section 27B

Provisions regarding investments of assets of insurer carrying general insurance business.

Section 27C

Investment by insurer in certain cases.

Section 27D

Manner and conditions of investment.

Section 27E

Prohibition for investment of funds outside India.

Section 28

Statement and return of investment of assets.

Section 29

Prohibition of loans.

Section 30

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

Section 31

Assets of insurer how to be kept.

Section 31A

Provisions relating to managers, etc.

Section 31B

Power to restrict payment of excessive remuneration.

Section 32

[Omitted.].

Section 32A

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

Section 32B

Insurance business in rural and social sectors.

Section 32C

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

Section 32D

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

INVESTIGATION

Section 33

Power of investigation and inspection by Authority.

APPOINTMENT OF STAFF

Section 33A

Power to appoint staff.

POWER TO ISSUE DIRECTIONS

Section 34

Power of the Authority to issue directions.

CONTROL OVER MANAGEMENT

Section 34A to Section 34H

Section 34A

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

Section 34B

Power of Authority to remove managerial persons from office.

Section 34C

Power of Authority to appoint additional directors.

Section 34D

Sections 34B and 34C to override other laws.

Section 34E

Further powers.

Section 34F

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

Section 34G

Omitted.

Section 34H

Search and seizure.

AMALGAMATION AND TRANSFER OF INSURANCE BUSINESS

Section 35 to Section 37A

Section 35

Amalgamation and transfer of insurance business.

Section 36

Sanction of amalgamation and transfer by Controller.

Section 37

Statements required after amalgamation and transfer.

Section 37A

Power of Authority to prepare Scheme of Amalgamation.

ASSGNMENT OR TRANSFER OF POLICIES AND NOMINATIONS

Section 38 to Section 39

Section 38

Assignment and transfer of insurance policies.

Section 39

Nomination by policy-holder.

COMMISSION AND REBATES AND LICENSING OF AGENTS

Section 40 to Section 44A

Section 40

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

Section 40A

[Omitted.].

Section 40B

Limitation of expenses of management in life insurance business.

Section 40C

Limitation of expenses of management in general insurance business.

Section 41

Prohibition of rebates.

Section 42

Appointment of insurance agents.

Section 42A

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

Section 42D

Issue of registration to intermediary or insurance intermediary.

Section 42E

Commission, brokerage or fee payable to intermediary or insurance intermediary.

Section 43

Section 44

[Omitted.].

Section 44A

Power to call for information.

SPECIAL PROVISIONS OF LAW

Section 45 to Section 52

Section 45

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

Section 46

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

Section 47

Payment of money into Court.

Section 47A

[Omitted.].

Section 48A

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

Section 48B

Further provision regarding directors.

Section 48C

[Omitted.].

Section 49

Restriction On dividends and bonuses.

Section 50

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

Section 51

Supply of copies of proposals and medical reports.

Section 52

Prohibition of business of dividing principle.

MANAGEMENT BY ADMINISTRATOR

Section 52A to Section 52G

Section 52A

When Administrator for management of insurance business may be appointed.

Section 52B

Powers and duties of the Administrator.

Section 52BB

Powers of Administrator respecting property liable to attachment under section 106.

Section 52C

Cancellation of contracts and agreements.

Section 52D

Termination of appointment of Administrator.

Section 52E

Finality of decision appointing Administrator.

Section 52F

Penalty for withholding documents or property from Administrator.

Section 52G

Protection of action taken under sections 52A to 52D.

ACQUISITION OF THE UNDERTAKINGS OF INSURERS IN CERTAIN CASES

Section 52H to Section 52N

Section 52H

Section 52I

Section 52J

Section 52K

Section 52L

Section 52M

Section 52N

WINDING UP

Section 53 to Section 61A

Section 53

Winding up by the Court.

Section 53A

Unpaid-up share capital.

Section 54

Voluntary winding up.

Section 55

Valuation of liabilities.

Section 56

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

Section 57

Winding up of secondary companies.

Section 58

Schemes for partial winding up of insurance companies.

Section 59

[Omitted.].

Section 60

Notice of policy values.

Section 61

Power of Court to reduce contracts of insurance.

Section 61A

Appeal to National Company Law Appellate Tribunal.

SPECIAL PROVISIONS RELATING TO EXTERNAL COMPANIES

Section 62 to Section 64

Section 62

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

Section 63

Particulars to be filed by insurers established outside India.

Section 64

Books to be kept by insurers established outside India.

LIFE INSURANCE COUNCIL AND GENERAL INSURANCE COUNCIL AND COMMITTEES THEREOF

Section 64A to Section 64T

Section 64A

[Omitted.].

Section 64B

[Omitted.].

Section 64C

Councils of Life Insurance and General Insurance.

Section 64D

Authorisation to represent in Councils.

Section 64E

Authorities of the Life Insurance Council and the General Insurance Council.

Section 64F

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

Section 64G

Resignation and filling up of casual vacancies.

Section 64H

Duration and dissolution of Executive Committees.

Section 64I

Omitted..

Section 64J

Omitted.

Section 64K

Omitted.

Section 64L

Functions of Executive Committee of General Insurance Council.

Section 64M

Executive Committee of General Insurance Council may advise in controlling expenses.

Section 64N

Power of the Executive Committees to act together in certain cases.

Section 64O

Omitted..

Section 64P

[Omitted.].

Section 64Q

[Omitted.].

Section 64R

General power of Life Insurance Council and General Insurance Council.

Section 64S

[Omitted.].

Section 64T

[Omitted.].

TARIFF ADVISORY COMMITTEE AND CONTROL OF TARIFF RATES

Section 64U to Section 64UM

Section 64U

Section 64UA

Section 64UB

Section 64UC

Section 64UD

Section 64UE

Section 64UF

Section 64UG

Section 64UH

Section 64UI

Section 64UJ

Section 64UK

Section 64UL

Section 64ULA

Section 64UM

Surveyors and loss assessors.

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

Section 64V to Section 64VC

Section 64V

Assets and liabilities how to be valued.

Section 64VA

Sufficiency of assets.

Section 64VB

No risk to be assumed unless premium is received in advance.

Section 64VC

Restrictions on the opening of a new place of business.

RE-INSURANCE

Section 101A to Section 101C

Section 101A

Re-insurance with Indian re-insurers.

Section 101B

Advisory Committee.

Section 101C

Examination of re-insurance treaties.

MISCELLANEOUS

Section 102 to Section 123

Section 102

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

Section 103

Penalty for carrying on insurance business in contravention of sections 3.

Section 104

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

Section 105

Wrongfully obtaining or withholding property.

Section 105A

Offences by companies.

Section 105B

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

Section 105C

Power to adjudicate.

Section 105D

Factors to be taken into account by the adjudicating officer.

Section 106

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

Section 106A

Notice to and hearing of Authority.

Section 107

[Omitted.].

Section 107A

Chairman, etc., to be public servants.

Section 108

Power of Court to grant relief.

Section 109

Cognizance of offences.

Section 110

Appeal to Securities Appellate Tribunal.

Section 110A

Delegation of powers and duties of Chairperson of the Authority.

Section 110B

Signature of documents.

Section 110C

Power to call for information.

Section 110D

Certain claims for compensation barred.

Section 110E

[Omitted.].

Section 110F

Provisions applicable to state Governments, etc.

Section 110G

[Omitted.].

Section 110H

[Omitted.].

Section 110HA

Penalty to be recoverable as arrear of land revenue.

Section 111

Service of notices.

Section 112

Declaration of interium bonuses.

Section 113

Acquisition of surrender value by policy.

Section 114

Power of Central Government to make rules.

Section 114A

Power of Authority to make regulations.

Section 115

Alteration of forms.

Section 116

Power to exempt from certain requirements.

Section 116A

Summary of returns to be published.

Section 117

Saving of provisions of Indian Companies Act, 2013.

Section 118

Exemptions

Section 119

Inspection and supply of copies of published prospectus, etc.

Section 120

Determination of market value of securities deposited under this Act.

Section 121

Repealed.

Section 122

Repealed.

Section 123

Repealed.