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 18: Functions of Corporation.
    (1) The functions of the Corporation shall include--
         (a) the carrying on of any part of the general insurance business, if it thinks it desirable to do so;
         (b) aiding, assisting and advising the acquiring companies in the matter of setting up of standards of conduct and sound practice in general insurance business and in the matter of rendering efficient service to holders of policies of general insurance;
         (c) advising the acquiring companies in the matter of controlling their expenses including the payment of commission and other expenses;
         (d) advising the acquiring companies in the matter of the investment of their funds;
         (e) issuing directions to acquiring companies in relation to the conduct of general insurance business:
     1[Provided that all the functions of the Corporation specified in this sub-section, on and from the commencement of the General Insurance Business (Nationalisation) Amendment Act, 2002, shall be performed by the Central Government.]
     (2) In issuing any directions under sub-section (1), the 2[Central Government] shall keep in mind the desirability of encouraging competition amongst the acquiring companies as far as possible in order to render their services more efficient.
Notes:
1. Ins. by Act 40 of 2002, s. 4 (w.e.f. 21-3-2003).
2. Subs. by s. 4, ibid., for "Corporation" (w.e.f. 21-3-2003).
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