Section List

4/1938 - The Insurance Act, 1938 ▶

Act Number: 4

Act Name: The Insurance Act, 1938

Year: 1938

Enactment Date: 1938-02-26

Long Title: An Act to consolidate and amend the law relating to the business of insurance.

Ministry: Ministry of Finance

Department: Department of Financial Services

Section Number	Title	Actions
1	Short title, extent and commencement.
2	Definitions.
2A	Interpretation of certain words and expressions.
2B	Appointment of Controller of Insurance.
2C	Prohibition of transaction of insurance business by certain persons.
2CA	Power of Central Government to apply provisions of this Act to Special Economic Zones.
2CB	Properties in India not to be insured with foreign insurers except with the permission of Authority.
2D	Insurers to be subject to this Act while liabilities remain unsatisfied.
2E	[Omitted.].
3	Registration.
3A	Payment of annual fee by insurer.
3B	Certification of soundness of terms of life insurance business.
4	Minimum limits for annuities and other benefits secured by policies of life insurance.
5	Restriction on name of insurer.
6	Requirements as to capital.
6A	Requirements as to capital structure and voting rights and maintenance of registers beneficial owners of shares.
6AA	[Omitted.].
6B	Provision for securing compliance with requirements relating to capital structure.
6C	[Omitted.].
7	[Omitted.].
8	[Omitted.].
9	[Omitted.].
10	Separation of accounts and funds.
11	Accounts and balance-sheet.
12	Audit.
13	Actuarial report and abstract.
14	Record of policies and claims.
15	Submission of returns.
16	[Omitted.].
17	[Omitted.].
17A	[Omitted.].
18	Furnishing reports.
19	Abstract of proceedings of general meetings.
20	Custody and inspection of documents and supply of copies.
21	Powers of Authority regarding returns.
22	Powers of Authority to order revaluation.
23	Evidence of documents.
24	[Omitted.].
25	Returns to be published in statutory forms.
26	Alterations in the particulars furnished with application for registration to be reported.
27	Investment of assets.
27A	Further provisions regarding investments.
27B	Provisions regarding investments of assets of insurer carrying general insurance business.
27C	Investment by insurer in certain cases.
27D	Manner and conditions of investment.
27E	Prohibition for investment of funds outside India.
28	Statement and return of investment of assets.
29	Prohibition of loans.
30	Liability of directors, etc.,for loss due to contravention of section 27,27A,27B,27C,27D or section 29.
31	Assets of insurer how to be kept.
31A	Provisions relating to managers, etc.
31B	Power to restrict payment of excessive remuneration.
32	[Omitted.].
32A	Prohibition of common officers and requirement as to whole-time officers.
32B	Insurance business in rural and social sectors.
32C	Obligations of insurer in respect of rural or unorganised sector and backward classes.
32D	Obligation of insurer in respect of insurance business in third party risks of motor vehicles.
33	Power of investigation and inspection by Authority.
33A	Power to appoint staff.
34	Power of the Authority to issue directions.
34A	Amendment of provisions relating to appointments of managing directors, etc., to be subject to previous approval of the Controller.
34B	Power of Authority to remove managerial persons from office.
34C	Power of Authority to appoint additional directors.
34D	Sections 34B and 34C to override other laws.
34E	Further powers.
34F	Power of Authority to issue directions regarding re-insurance treaties, etc.
34G	Omitted.
34H	Search and seizure.
35	Amalgamation and transfer of insurance business.
36	Sanction of amalgamation and transfer by Controller.
37	Statements required after amalgamation and transfer.
37A	Power of Authority to prepare Scheme of Amalgamation.
38	Assignment and transfer of insurance policies.
39	Nomination by policy-holder.
40	Prohibition of payment by way of commission or otherwise for procuring business.
40A	[Omitted.].
40B	Limitation of expenses of management in life insurance business.
40C	Limitation of expenses of management in general insurance business.
41	Prohibition of rebates.
42	Appointment of insurance agents.
42A	Prohibition of insurance business through principal agent, special agent and multilevel marketing.
42D	Issue of registration to intermediary or insurance intermediary.
42E	Commission, brokerage or fee payable to intermediary or insurance intermediary.
43	Register of insurance agents.
44	[Omitted.].
44A	Power to call for information.
45	Policy not to be called in question on ground of mis-statement after two years.
46	Application of the law in force in India to policies issued in India.
47	Payment of money into Court.
47A	[Omitted.].
48	[Omitted.].
48A	. Insurance agent or intermediary or insurance intermediary not to be director in insurance company.
48B	Further provision regarding directors.
48C	[Omitted.].
49	Restriction On dividends and bonuses.
50	Notice of options available to the assured on the lapsing of a policy.
51	Supply of copies of proposals and medical reports.
52	Prohibition of business of dividing principle.
52A	When Administrator for management of insurance business may be appointed.
52B	Powers and duties of the Administrator.
52BB	Powers of Administrator respecting property liable to attachment under section 106.
52C	Cancellation of contracts and agreements.
52D	Termination of appointment of Administrator.
52E	Finality of decision appointing Administrator.
52F	Penalty for withholding documents or property from Administrator.
52G	Protection of action taken under sections 52A to 52D.
52H	[Omitted.].
52-I	Omitted..
52J	[Omitted.].
52K	[Omitted.].
52L	[Omitted.].
52M	[Omitted.].
52N	[Omitted.].
53	Winding up by the Court.
53A	Unpaid-up share capital.
54	Voluntary winding up.
55	Valuation of liabilities.
56	Application of surplus assets of life insurance fund in liquidation or insolvency.
57	Winding up of secondary companies.
58	Schemes for partial winding up of insurance companies.
59	[Omitted.].
60	Notice of policy values.
61	Power of Court to reduce contracts of insurance.
61A	Appeal to National Company Law Appellate Tribunal.
62	Power of Central Government to impose reciprocal disabilities on non-Indian companies.
63	Particulars to be filed by insurers established outside India.
64	Books to be kept by insurers established outside India.
64A	[Omitted.].
64B	[Omitted.].
64C	Councils of Life Insurance and General Insurance.
64D	Authorisation to represent in Councils.
64E	Authorities of the Life Insurance Council and the General Insurance Council.
64F	Executive Committees of the Life Insurance Council and the General Insurance Council.
64G	Resignation and filling up of casual vacancies.
64H	Duration and dissolution of Executive Committees.
64-I	Omitted..
64J	Omitted.
64K	Omitted.
64L	Functions of Executive Committee of General Insurance Council.
64M	Executive Committee of General Insurance Council may advise in controlling expenses.
64N	Power of the Executive Committees to act together in certain cases.
64-O	Omitted..
64P	[Omitted.].
64Q	[Omitted.].
64R	General power of Life Insurance Council and General Insurance Council.
64S	[Omitted.].
64T	[Omitted.].
64U	Omitted.
64UA	Omitted.
64UB	Omitted.
64UC	Omitted.
64UD	Omitted.
64UE	Omitted.
64UF	Omitted.
64UG	Omitted.
64UH	Omitted.
64U-I	Omitted.
64UJ	Omitted.
64UK	Omitted.
64UL	Omitted.
64ULA	Omitted.
64UM	Surveyors and loss assessors.
64V	Assets and liabilities how to be valued.
64VA	Sufficiency of assets.
64VB	No risk to be assumed unless premium is received in advance.
64VC	Restrictions on the opening of a new place of business.
65	[Omitted.].
65A	[Omitted.].
66	[Omitted.].
67	[Omitted.].
68	[Omitted.].
69	[Omitted.].
70	[Omitted.].
70A	[Omitted.].
70B	[Omitted.].
71	[Omitted.].
72	[Omitted.].
73	[Omitted.].
73A	[Omitted.].
74	[Omitted.].
75	[Omitted.].
76	[Omitted.].
77	[Omitted.].
78	[Omitted.].
79	[Omitted.].
80	[Omitted.].
81	[Omitted.].
82	[Omitted.].
83	[Omitted.].
84	[Omitted.].
85	[Omitted.].
86	[Omitted.].
87	[Omitted.].
87A	[Omitted.].
88	[Omitted.].
89	[Omitted.].
90	[Omitted.].
90A	[Omitted.].
91	[Omitted.].
92	[Omitted.].
93	[Omitted.].
94	[Omitted.].
95	[Omitted.].
96	[Omitted.].
97	[Omitted.].
98	[Omitted.].
98A	[Omitted.].
99	[Omitted.].
100	[Omitted.].
101	[Omitted.].
101A	Re-insurance with Indian re-insurers.
101B	Advisory Committee.
101C	Examination of re-insurance treaties.
102	Penalty for default in complying with, or act in contravention of this Act.
103	Penalty for carrying on insurance business in contravention of sections 3.
104	Penalty for contravention of sections 27, 27A, 27B, 27D and 27E.
105	Wrongfully obtaining or withholding property.
105A	Offences by companies.
105B	Penalty for failure to comply with sections 32B, 32C and 32D.
105C	Power to adjudicate.
105D	Factors to be taken into account by the adjudicating officer.
106	Power of Court to order restoration of property of insurer or compensation in certain cases.
106A	Notice to and hearing of Authority.
107	[Omitted.].
107A	Chairman, etc., to be public servants.
108	Power of Court to grant relief.
109	Cognizance of offences.
110	Appeal to Securities Appellate Tribunal.
110A	Delegation of powers and duties of Chairperson of the Authority.
110B	Signature of documents.
110C	Power to call for information.
110D	Certain claims for compensation barred.
110E	[Omitted.].
110F	Provisions applicable to state Governments, etc.
110G	[Omitted.].
110H	[Omitted.].
110HA	Penalty to be recoverable as arrear of land revenue.
111	Service of notices.
112	Declaration of interium bonuses.
113	Acquisition of surrender value by policy.
114	Power of Central Government to make rules.
114A	Power of Authority to make regulations.
115	Alteration of forms.
116	Power to exempt from certain requirements.
116A	Summary of returns to be published.
117	Saving of provisions of Indian Companies Act, 2013.
118	Exemptions
119	Inspection and supply of copies of published prospectus, etc.
120	Determination of market value of securities deposited under this Act.
121	Repealed.
122	Repealed.
123	Repealed.
94A	Omitted.
118A	Powers of Authority not to apply to International Financial Services Centre.