Subject to such rules as the Central Government may make in this behalf, every whole-time salaried employee of a chief agent of an insurer whose controlled business has been transferred to and vested in the Corporation and,--
         (a) who was employed by the chief agent wholly or mainly in connection with the controlled business of the insurer;
         (b) whose salary on the appointed day did not exceed five hundred rupees per mensem; and
         (c) who was in the employment of the chief agent for a continuous period of not less than one year immediately before the appointed day;
shall, on and from the appointed day, become, an employee of the Corporation and the provisions of section 11 shall, so far as may be, apply in relation to such employee as they apply in relation to a whole-time employee of the insurer:
     Provided that this section shall not apply except in cases where the chief agent of the insurer was required under the terms of his contract with the insurer to render the prescribed services to policy holders of the insurer.
     Explanation.--In the case of a whole-time salaried employee of a chief agent who has been retrenched by the chief agent on or after the 19th day of January, 1956, the provisions of this section shall apply as if for the words 'the appointed day' the words and figures 'the 19th day of January, 1956' had been substituted.