Act Number: 57

Act Name: The General Insurance Business (Nationalisation) Act, 1972

Year: 1972

Enactment Date: 1972-09-20

Long Title: 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.

Ministry: Ministry of Finance

Department: Department of Financial Services

Section 3: Definitions.
    In this Act, unless the context otherwise requires,
         (a) acquiring company means any Indian insurance company and, where a scheme has been framed involving the merger of one Indian insurance company in another or the amalgamation of two or more such companies, means the Indian insurance company in which any other company has been merged or the company which has been formed as a result of the amalgamation;
         (b) appointed day means such day not being a day later than the 2nd day of January, 1973, as the Central Government may, by notification, appoint;
        1[(ba) “board of directors” or “board”, in relation to a specified insurer, shall have the same meaning as assigned to it in clause (10) of section 2 of the Companies Act, 2013 (18 of 2013);]
         (c) Companies Act means 2[the Companies Act, 2013 (18 of 2013)];
         (d) Corporation means the General Insurance Corporation of India formed under section 9;
         (e) existing insurer means every insurer the management of whose undertaking has vested in the Central Government under section 3 of the General Insurance (Emergency Provisions) Act, 1971 (17 of 1971), and includes the undertaking of the Life Insurance Corporation in so far as it relates to the general insurance business carried on by it;
         (f) foreign insurer means an existing insurer incorporated under the law of any country outside India;
         3[(g) “general insurance business shall have the same meaning as assigned to it in the Insurance Act, 1938 (4 of 1938);]
         (h) Government company means a Government company as defined in 4[ clause (45) of section 2] of the Companies Act;
         (i) Indian insurance company means an existing insurer having a share capital who is a company within the meaning of the Companies Act;
         (j) Insurance Act means the Insurance Act, 1938 (4 of 1938);
         (k) Life Insurance Corporation means the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956 (31 of 1956);
         (l) notification means a notification published in the Official Gazette;
         (m) prescribed means prescribed by rules made under this Act;
         (n) Schedule means the Schedule to this Act;
         (o) scheme means the scheme framed under section 16 5[and also includes a scheme framed under section 17A;]
        6[(oa) “specified insurer” means the Corporation as defined in clause (d) or any of the insurance companies specified in section 10A;]
         (p) words and expressions used in this Act but not defined herein and defined in the Insurance Act, shall have the meanings respectively assigned to them in that Act;
         (q) words and expressions used in this Act but not defined herein or in the Insurance Act and defined in the Companies Act, shall have the meanings respectively assigned to them in the Companies Act.
Notes:
1. Ins. by Act 37 of 2021, s. 2 (w.e.f. 27-8-2021).
2. Subs. by s. 2, ibid., for the Companies Act, 1956 (1 of 1956)” (w.e.f. 27-8-2021).
3. Subs. by s. 2, ibid., for clause (g) (w.e.f. 27-8-2021).
4. Subs. by s. 2, ibid., for “section 617” (w.e.f. 27-8-2021).
5. Ins. by Act 3 of 1985, s. 2 (w.e.f.17-9-1984).
6. Ins. by Act 37 of 2021, s. 2 (w.e.f. 27-8-2021).
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