Section 27
Power to reduce amounts of insurance in certain eases
The General Insurance Business (Nationalisation) Act, 1972
About this Act
An Act to provide for the acquisition and transfer of shares of Indian insurance companies and undertakings of other existing insurers in order to serve better the needs of the economy by securing the development of general insurance business in the best interests of the community and to ensure that the operation of the economic system does not result in the concentration of wealth to the common detriment, for the regulation and control of such business and for matters connected therewith or incidental thereto.
An acquiring company may, having
regard to its financial condition on the 13th day of May, 1971 or the financial condition on the said date
of any existing insurer whose undertaking has been transferred to and vested in it under this Act reduce
the liabilities which have arisen under contracts of general insurance entered into before the said date in
such manner and subject to such conditions as it thinks fit:
Provided that no such reduction shall be made except in accordance with specific proposals made by the acquiring company in this behalf and approved by the Central Government.
Provided that no such reduction shall be made except in accordance with specific proposals made by the acquiring company in this behalf and approved by the Central Government.