Section 41:
Prohibition 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.]
Notes:
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).