THE GENERAL INSURANCE BUSINESS (NATIONALISATION) ACT, 1972
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THE GENERAL INSURANCE BUSINESS (NATIONALISATION) ACT, 1972
Title : THE GENERAL INSURANCE BUSINESS (NATIONALISATION) ACT, 1972
Year : 1972
(1) For the transfer of the shares of each Indian insurance company to, and vesting in, the Central Government, under section 4, there shall be paid by the Central Government to the Corporation, for distribution to the shareholders of each such company, the amount specified against such company in the corresponding entry under column 3 of Part A of the Schedule.
(2) For the transfer to, and vesting in, the Central Government, under section 5, of the undertaking of each existing insurer, who is not an Indian Insurance Company there shall be paid by the Central Government to the Corporation, for payment to each such existing insurer, the amount specified against such insurer in the corresponding entry under column 8 of Part B of the Schedule.
(1) The total amount paid by the Central Government under section 11 shall be treated as additional contribution to the subscribed capital of the Corporation and such additional subscribed capital shall stand allotted to, and vested in, the Central Government.
(2) The Corporation shall distribute the amount paid to it under section 11, to the shareholders of each Indian insurance company and to each existing insurer, who is not an Indian insurance company, in accordance with their rights and interests, and, if there is any doubt or dispute as to the right, or extent of the right, of any person to receive the whole or any part of such amount, refer such doubt or dispute to the Central Government for determination and thereafter, act in accordance with the determination made by that Government.
(3) Save as otherwise provided in sub-section (2), the amount referred to in section 11 shall be given in accordance with the provisions of section 13, section 14 or section 15, as the case may be.
(1) Where the amount referred to in section 11 is to be given-
(a) To the members of an Indian insurance company the amount due to each such member shall be paid in full where it does not exceed twenty-five thousand rupees and where it exceeds twenty-five thousand rupees each such member shall be paid twenty-five thousand rupees and the balance of the amount due to such member shall be paid to him in three equal annual installments the first of which shall fall due on the appointed day;
(b) To a foreign insurer, it shall be given to him in cash within three months from the appointed day;
(c) To the Life Insurance Corporation, it shall be given to it in three equal annual installments the first of which shall fall due on the appointed day;
(d) To an existing insurer who is a co-operative society, it shall be distributed as soon as may be after the appointed day, in accordance with the rules of the society which will apply in case of dissolution of the society;
(e) To an existing insurer not falling within any of the foregoing provisions, it shall be apportioned by the acquiring company among the individual policy-holders of the insurer whose policies with that insurer were in force on the appointed day and were comprised in the undertaking of such insurer in proportion to the premiums paid by the policy-holders under such policies and every such payment shall be made either-
(i) In cash, to be sent by postal money-order, or
(ii) At the option of the policy-holder, as a deduction in the premium due at the time of the renewal of the policy and such option shall be exercised by the policy-holder before the expiry of three months from the appointed day (or within such further time not exceeding three months as the Central Government may, on the application of the policy-holder, allow); and the option so exercised shall be final and shall not be altered or rescinded after it has been exercised:
Provided that if any policy-holder fails to exercise his option within the time allowed, he shall be deemed to have exercised his option in favour of payment in cash by postal money-order.
(2) Where any amount is payable whether in installments or otherwise under the provisions of this section the unpaid amount, where its payment has become due, shall carry interest at the date of four percent per annum from the appointed day.
(1) Notwithstanding anything contained elsewhere in this Act, if a majority in number of the persons, who immediately before the appointed day were registered in the books of an Indian insurance company as the members thereof, and representing two-thirds in value of the amount payable to the Indian insurance company, agree either in person or by proxy at a meeting specially convened for the purpose that the amount so payable instead of being distributed among the members shall be given to any such person or body of persons as the members may nominate either at that meeting or subsequently for the purpose of carrying on any business, and the Central Government is satisfied that due provision has been or will be made for the payment of the value of their respective shares to persons who have dissented from the resolution, the amount may be given to the person or body of persons so nominated in such manner and subject to such conditions as the Central Government may think fit.
(2) No resolution passed at any such meeting as is referred to in sub-section (1) held after the appointed day shall have any effect unless the meeting has been convened after obtaining the payment of the Central Government.
Where a claim to the amount payable under section 11 is made by two or more persons adversely to one another, the corporation may cause the amount to be deposited in any civil court having jurisdiction in that behalf and the court shall decide as to whom the payment shall be made.
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