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Insurance Act, 1938 (4 of 1938) Complete Act - Bare Act

StateCentral Government
Act Info:
Preamble1 - INSURANCE ACT, 1938
Part I
Section1 - Short title, extent and commencement
Section2 - Definitions
Section2A - Interpretation of certain words and expressions
Section2B - Appointment of Controller of Insurance
Part II
Section2C - Prohibition of transaction of insurance business by certain persons
Section2CA - Power of Central Government to apply provisions of this Act to Special Economic Zones.
Section2D - Insurers to be subject to this Act while liabilities remain unsatisfied
Section2E - This Act not to apply to certain insurers, ceasing to enter into new contracts before commencement of Act
Section3 - Registration
Section3A - Renewal of registration
Section3B - Certification of soundness of terms of life insurance business
Section4 - Minimum limits for annuities and other benefits secured by policies of life insurance
Section5 - Restriction on name of insurer
Section6 - Requirement as to capital
Section6A - Requirements as to capital structure and voting rights and maintenance of registers of beneficial owners of shares
Section6AA - Manner of divesting excess shareholding by promoter in certain cases
Section6B - Provision for securing compliance with requirements relating to capital structure
Section6C - Conversion of company limited by shares into company limited by guarantee
Section7 - Deposits
Section8 - Reservation of deposits
Section9 - Refund of Deposit
Section10 - Separation of accounts and funds
Section11 - Accounts and balance-sheet
Section12 - Audit
Section13 - Actuarial report and abstract
Section14 - Register of policies and register of claims
Section15 - Submission of returns
Section16 - Returns by insurers established outside India
Section17 - Exemption from certain provisions of the Indian Companies Act, 1913
Section17A - This Act not to apply to preparation of accounts, etc., for periods prior to this Act coming into force
Section18 - Furnishing reports
Section19 - Abstract of proceedings of general meetings
Section20 - Custody and inspection of documents and supply of copies
Section21 - Powers of Authority regarding returns
Section22 - Powers of Authority to order revaluation
Section23 - Evidence of documents
Section24 - Repealed
Section25 - Returns to be published in statutory forms
Section26 - Alterations in the particulars furnished with application for registration to be reported
Section27 - Investment of assets
Section27A - Further provisions regarding investments
Section27B - Further provisions regarding investments
Section28C - Prohibition for investment of funds outside India
Section27D - Manner and conditions of investment
Section28 - Statement of investment of assets
Section28A - Return of investments relating to controlled fund and changes therein
Section28B - Returns of investments relating to the assets and changes therein
Section29 - Prohibition of loans
Section30 - Liability of directors, etc., for loss due to contravention of sections 27, 27A, 27B and 29
Section31 - Assets of insurer how to be kept
Section31A - Provisions relating to managers, etc.
Section31B - Power to restrict payment of excessive remuneration
Section32 - Limitation on employment of managing agents and on the remuneration payable to them
Section32A - Prohibition of common officers and requirement as to whole-time officers
Section32B - Insurance business in rural or social sector
Section32C - Obligations of insurer in respect of rural or unorganised sector and backward classes
Section33 - Power of investigation and inspection by Authority
Section33A - Power to appoint staff
Section34 - Power of the Authority to issue directions
Section34A TO 34H - Control over Management
Section34A - Amendment of provisions relating to appointments of managing directors, etc., to be subject to previous approval of the Authority
Section34B - Power of Authority to remove managerial persons from office
Section34C - Power of Authority to appoint additional directors
Section34D - Sections 34B and 34C to override other laws
Section34E - Further powers
Section34F - Power of Authority to issue directions regarding re-insurance treaties, etc.
Section34G - Power of Authority to order closure of foreign branches
Section34H - Search and seizure
Section35 - Amalgamation and transfer of insurance business
Section36 - Sanction of amalgamation and transfer by Authority
Section37 - Statements required after amalgamation and transfer
Section37A - Power of Authority to prepare Scheme of Amalgamation
Section38 - Assignment and transfer of insurance policies
Section39 - Nomination by policy-holder
Section40 - Prohibition of payment by way of commission or otherwise for procuring business
Section40A - Limitation of expenditure on commission
Section40B - Limitation of expenses of management in life insurance business
Section40C - Limitation of expenses of management in general insurance business
Section41 - Prohibition of rebates
Section42 - Licensing of insurance agents
Section42A - Registration of principal agents, chief agents and special agents
Section42B - Regulation of employment or principal agents
Section42C - Regulation of employment of chief agents and special agents
Section42D - Issue of licence to intermediary or insurance intermediary
Section42E - Commission, brokerage or fee payable to intermediary or insurance intermediary
Section43 - Register of insurance agents
Section44 - Prohibition of cessation of payments of commission
Section44A - Power to call for information
Section45 - Policy not to be called in question on ground of mis-statement after two years
Section46 - Application of the law in force in India to policies issued in India
Section47 - Payment of money into court
Section47A - Claims on small life insurance policies
Section48 - Directors of insurers being companies
Section48A - Life insurance agents not to be directors of life insurance companies
Section48B - Further provision regrding direction
Section48C - Repealed
Section49 - Restriction on dividends and bonus
Section50 - Notice of options available to the assured on the lapsing of a policy
Section51 - Supply of copies of proposals and medical reports
Section52 - Prohibition of business on dividing principle
Section52A TO 52G - Management by Administrator
Section52A - When Administrator for management of insurance business may be appointed
Section52B - Powers and duties of the Administrator
Section52BB - Powers of Administrator respecting property liable to attachment under section 106
Section52C - Cancellation of contracts and agreements
Section52D - Termination of appointment of Administrator
Section52E - Finality of decision appointing Administrator
Section52F - Penalty for withholding documents of property from Administrator
Section52G - Protection of action taken under sections 52A to 52D
Section52H TO 52N - Acquisition of the Undertakings of Insurers in certain cases
Section52H - Power of Central Government to acquire undertakings of insurers in certain cases
Section52I - Power of Central Government to make Scheme
Section52J - Compensation to be given to the acquired insurer
Section52K - Constitution of the Tribunal
Section52L - Tribunal to have powers of Civil Court
Section52M - Procedure of the Tribunal
Section52N - Special provisions for the dissolution of acquired insurers
Section53 - Winding up by the Court
Section53A - Unpaid-up share capital
Section54 - Voluntary winding up
Section55 - Valuation of liabilities
Section56 - Application of surplus assets of life insurance fund in liquidation or insolvency
Section57 - Winding up of secondary companies
Section58 - Scheme for partial winding up of insurance companies
Section59 - Return of deposits
Section60 - Notice of policy values
Section61 - Power of Tribunal to reduce contracts of insurance
Section61A - Appeal to National Company Law Appellate Tribunal
Section62 - Power of Central Government to impose reciprocal disabilities on non-Indian companies
Section63 - Particulars to be filed by insurers established outside India
Section64 - Books to be kept by insurers established outside India
Section64A - Incorporation of the Insurance Association of India
Section64B - Entry of names of members in the register
Section64C - Councils of the Insurance Association of India
Section64D - Authority of members of Association to act through agents
Section64E - Authorities of the Life Insurance Council and the General Insurance Council
Section64F - Executive Committees of the Life Insurance Council and the General Insurance Council
Section64G - Resignation and filling up of casual vacancies
Section64H - Duration and dissolution of Executive Committees
Section64I - Power of Executive Committee of Life Insurance Council to hold examinations for insurance agents
Section64J - Functions of Executive Committee of Life Insurance Council
Section64K - Executive Committee of Life Insurance Council may advise in controlling expenses
Section64L - Functions of the Executive Committee of General Insurance Council
Section64M - Executive Committee of General Insurance Council may advise in controlling expenses
Section64N - Powers of the Executive Committees to act together in certain cases
Section64O - Power of General Insurance Council to regulate rates of insurance, etc. [Repealed]
Section64P - Regional Councils [Repealed]
Section64Q - Functions of the Regional Councils [Repealed]
Section64R - General powers of Life Insurance Council and General Insurance Council
Section64S - Power of Central Government to remove difficulties
Section64T - Power to exempt
Section64U - Establishment of Tariff Advisory Committee
Section64UA - Composition of the Advisory Committee
Section64UB - Power to make rules in respect of matters in this Part
Section64UC - Power of the Advisory Committee to regulate rates, advantages, etc.
Section64UD - Transitional provisions
Section64UE - Power of the Advisory Committee to require information, etc.
Section64UF - Assets and liabilities of the General Insurance Council to vest in the Advisory Committee
Section64UG - Contracts, etc., to be effective by or against the Advisory Committee
Section64UH - Employees, etc., to continue
Section64UI - Duty of person having custody or control of property to deliver such property to the Advisory Committee
Section64UJ - Power of the Advisory Committee to constitute Regional Committees
Section64UK - Levy of fees by the Advisory Committee
Section64UL - Power to remove difficulties
Section64UM - Licensing of surveyors and loss assessors
Section64V - Assets and liabilities how to be valued
Section64VA - Sufficiency of assets
Section64VB - No risk to be assumed unless premium is received in advance
Section64VC - Restrictions on the opening of a new place of business
Part III
Section65 - Definition of provident society
Section65A - Prohibition of transaction of insurance business by provident societies other than public companies or co-operative societies
Section66 - Restrictions on provident societies
Section67 - Name
Section68 - Insurable interest
Section69 - Dividing Business
Section70 - Registration
Section70A - Renewal of registration
Section70B - Supplementary information and reports of alterations in particulars furnished with application for registration
Section71 - Certain provisions of Part II to apply to provident societies
Section72 - Working Capital
Section73 - Deposits
Section73A - Restriction on name of provident society
Section74 - Rules
Section75 - Amendment of rules
Section76 - Supply of copy of rules
Section77 - Registered office
Section78 - Publication of authorised capital to contain also subscribed and paid-up capital
Section79 - Registered and books
Section80 - Revenue account, balance-sheet and annual statements
Section81 - Actuarial report and abstract
Section82 - Submisison of returns to Authority
Section83 - Actuarial examination of schemes
Section84 - Separation of accounts and funds
Section85 - Investment funds
Section86 - Inspection of books
Section87 - Inquiry by or on behalf of Authority
Section87A - Amalgamation and transfer of insurance business
Section88 - Winding up by Court and voluntary winding up
Section89 - Reduction of Insurance contracts
Section90 - Appointment of liquidator
Section90A - Application of Act to liquidators
Section91 - Powers of liquidator
Section92 - Procedure at liquidation
Section93 - Dissolution of provident society
Section94 - Nominations and assignments
Section94A - Insurance co-operative society to be an insurer
Part IV
Section95 - Definitions
Section96 - Application of Act to Mutual Insurance Companies and Co-operative Life Insurance Societies
Section97 - Working capital of Mutual Insurance Companies and Co-operative Life Insurance Societies
Section98 - Deposits to be made by Mutual Insurance Companies and Co-operative Life Insurance Societies
Section98A - Prohibition of loans
Section99 - Transferees and assignees of policies not to become members
Section100 - Publication of notices and documents of Mutual Insurance Companies and Co-operative Life Insurance Societies
Section101 - Supply of documents to members
Section101A - Re-insurance with Indian re-insurers
Section101B - Advisory Committee
Section101C - Examination of re-insurance treaties
Part V
Section102 - Penalty for default in complying with, or act in contravention of, this Act
Section103 - Penalty for carrying on insurance business in contravention of sections 3, 7 and 98
Section104 - Penalty for false statement in document
Section105 - Wrongfully obtaining or withholding property
Section105A - Offences by companies
Section105B - Penalty for failure to comply with section 32B
Section105C - Penalty for failure to comply with section 32C
Section106 - Power of court to order restoration of property of insurer or compensation in certain cases
Section106A - Notice to and hearing of Authority
Section107 - Previous sanction of Advocate-General for institution of proceedings
Section107A - Chairman, etc. to be public servant
Section108 - Power of court to grant relief
Section109 - Cognizance of offences
Section110 - Appeals
Section110A - Delegation of powers and duties of Chairperson of the Authority
Section110B - Signature of documents
Section110C - Power to call for information
Section110D - Certain claims for compensation barred
Section110E - Sections 3A, 27B, 28B, 33, etc., to apply to general insurance business of the Life Insurance Corporation of India
Section110F - Provisions applicable to State Governments, etc.
Section110G - Constitution of Consultative Committee
Section110H - Appeals
Section111 - Service of notices
Section112 - Declaration of interim bonuses
Section113 - Acquisition of surrender values by policy
Section114 - Power of Central Government to make rules
Section114A - Power of Authority to make regulations
Section115 - Alteration of forms
Section116 - Power to exempt from certain requirements
Section116A - Summary of returns to be published
Section117 - Saving of provisions of Indian Companies Act, 1913
Section118 - Exemptions
Section119 - Inspection and supply of copies of published prospectus, etc.
Section120 - Determination of market value of securities deposited under this Act
Section121 - Repealed
Section122 - Repealed
Section123 - Repeals
Amending Act1 - Insurance (Amendment) Act, 2002

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