Act 57 of 1972

The General Insurance Business (Nationalisation) Act, 1972

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 of Finance
  • Department of Financial Services
  • Enacted 1972-09-20
  • 48 sections
SectionTitle
1 Short title. Read
2 Declaration as to the policy of the State. Read
3 Definitions. Read
4 Transfer of shares of Indian insurance companies. Read
5 Transfer of undertakings of other existing insurers. Read
6 Effect of transfer of undertakings. Read
7 Transfer of service of existing employees in certain cases. Read
8 Provident, superannuation, welfare and other funds. Read
9 Formation of General Insurance Corporation of India. Read
10 Transfer to Corporation of shares vested in Central Government. Read
10A Transfer to Central Government of shares vested in Corporation. Read
10B Enhancement of equity capital of General Insurance companies. Read
11 Amounts to be paid for transfer and vesting of shares or undertakings. Read
12 Disbursement of amounts by Corporation. Read
13 Mode of payment. Read
14 Amount payable to shareholders may be paid to named persons instead in certain cases. Read
15 Payment into court in case of rival claims. Read
16 Schemes for mergers of companies, etc. Read
17 Laying of schemes and notifications before Parliament. Read
17A Power of Central Government to regulate the terms and conditions of service of officers and other employees. Read
18 Functions of Corporation. Read
19 Functions of acquiring companies. Read
20 Balance of profit how to be utilised. Read
21 Interim provisions for management of Indian insurance companies. Read
22 Power of Central Government to transfer employees. Read
23 Power of Central Government to issue directions. Read
24 Acquiring companies to have the exclusive privilege of carrying on general insurance business. Read
24A Exclusive privilege of Corporation and acquiring companies to cease. Read
24B Cessation of application of Act.Read
25 Omitted. Read
26 Acquiring companies and income-tax.Read
27 Power to reduce amounts of insurance in certain easesRead
28 Right of acquiring company to seek relief in respect of certain transactions.Read
29 Duty to deliver possession of property and documents relating thereto.Read
30 Penalty for withholding property, etc.Read
31 Officers and employees of Corporation or of acquiring companies to be public servants.Read
31A Liability of director of specified insurer.Read
32 IndemnityRead
33 Dissolution of Corporation and acquiring companiesRead
34 Reference to existing insurer in other lawsRead
35 Application of Insurance Act.Read
35A Omitted.Read
36 ExemptionsRead
37 Vacancies, etc., not to invalidate proceedings.Read
38 Protection of action taken in good faith.Read
38A Powers of Insurance Regulatory and Development Authority of India not to apply to International Financial Services Centre.Read
39 Power to make rules.Read
40 Repealed.Read
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