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 9: Formation of General Insurance Corporation of India.
    (1) As soon as may be after the commencement of this Act, the Central Government shall form a Government company in accordance with the provisions of the Companies Act, to be known as the General Insurance Corporation of India for the purpose of superintending, controlling and carrying on the business of general insurance:
     1[Provided that on and from the commencement of the General Insurance Business (Nationalisation) Amendment Act, 2002, the provisions of this sub-section shall have effect as if for the words superintending, controlling and carrying on the business of general insurance, the words carrying on re-insurance business had been substituted.]
     (2) The authorised capital of the Corporation shall be 2[rupees two hundred and fifty crores, divided into two hundred and fifty lakhs fully paid-up shares] of one hundred rupees each, out of which rupees five crores shall be the initial subscribed capital of the Corporation:
     1[Provided that the Central Government may, by notification, increase or reduce the authorised capital or subscribed capital, as the case may be, as it deems fit.]
     (3) Notwithstanding anything contained in 3[the Companies Act, 2013 (18 of 2013)], it shall not be necessary to add the word Limited as the last word of the name of the Corporation.
Notes:
1. The proviso inserted by Act 40 of 2002, s. 2 (w.e.f. 21-3-2003).
2. Subs. by Act 38 of 1989, s. 2, for rupees seventy-five crores, divided into seventy-five lakhs fully paid-up shares (w.e.f. 22-10-1989).
3. Subs. by Act 37 of 2021, s. 3, for “the Companies Act, 1956 (1 of 1956)” (w.e.f. 27-8-2021).
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