Indian Bare Acts

Search Alphabatically :

THE GENERAL INSURANCE BUSINESS (NATIONALISATION) ACT, 1972

Title : THE GENERAL INSURANCE BUSINESS (NATIONALISATION) ACT, 1972

Year : 1972



(1) The functions of the Corp oration 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 o there 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 ), the2*[ 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.

---------------------------------------------------------------------------------------------------------------------------------------------------------

1. Inserted by Act 40 of 2002, section 4.

2. Substituted by Act 40 of 2002, section 4, for "Corporation".

---------------------------------------------------------------------------------------------------------------------------------------------------------



(1) Subject to the rules, if any, made by the Central Government in this behalf and to its me morandum and articles of association, it shall be the duty of every acquiring company to carry on general insurance business.

(2) Each acquiring company shall so function under this Act as to secure that general insurance business is developed to the best advantage of the community.

(3) In the discharge of any of its functions, each acquiring company shall act so far as may be on business principles and where any directions have been issued by the1*[ Central Government or the Insurance Regulatory and Development Authority established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999)] shall be guided by such directions.

(4) For the removal of doubts it is hereby declared that the Corp oration and any acquiring company may, subject to the rules, if any, made by the Central Government in this behalf, enter into such contracts of reinsurance or reinsurance treaties as it may think fit for the protection of its interests.

--------------------------------------------------------------------------------------------------------------------------------------------------------

1.Substituted by Act 40 of 2002, section 5, for "Corporation".

--------------------------------------------------------------------------------------------------------------------------------------------------------



 
(1 ) After making provision for bad and doubtful debts, depreciation in assets, provident, superannuation, welfare and other funds, debts due to Government and all other matters for which provision is necessary under any law or which are usually provided for by insurance companies, every acquiring company sh all distribute the balance of profit as dividends.

( 2) Any profit made by the Corporation and any sums received by the Corp oration by way of dividends or otherwise shall be dealt with by it in such manner as may be prescribed.



(1) Notwithstanding anything contained in the Companies Act or in the me morandum and articles of association of any Indian insurance company, on and from the appointed day and until a new board of directors of the Indian insurance company is duly constituted, the management of the company sh all continue to vest in the Custodian in charge of the management of the undertaking of that company immediately before the appointed day by virtue of the provisions contained in the General Insurance (Emergency Provisions) Act, 1971 (17 of 1971)1*, and the Custodian sh all be entitled, subject to such directions as the Central Government may issue in this behalf, to exercise all the powers and do all acts and things as may be exercised or done by the company or by its board of directors.

(2) Nothing contained in sub -section (1) sh all be deemed to prevent the Central Government from appointing any other person to take charge of the management of the undertaking of any Indian insurance company during the period referred to in that sub -section if for any reason it becomes necessary so to do, and any person so appointed may exercise all the powers and do all acts and things which a Custodian may exercise or do under sub -section (1).

(3) The Custodian referred to in sub -section (1) and the person appointed under sub -section (2) sh all be entitled to such salaries and other allowances as the Central Government may specify in this behalf and sh all hold office during the pleasure of the Central Government.

--------------------------------------------------------------------------------------------------------------------------------------------------------

1. Now stands repealed by the Insurance Laws (Transfer of Business and Emergency Provisions) Repeal Act, 2001 (11 of 2001), section 4 (w.e.f. 9-5-2001).

--------------------------------------------------------------------------------------------------------------------------------------------------------



1*[The Central Government or any person authorised by it may at any time transfer any officer] or employee from an acquiring company or the Corporation to any other acquiring company or the Corporation, as the case may be, and the officer or employee so transferred, sh all continue to have the same terms and conditions of service as were applicable to hi m immediately before such transfer.

--------------------------------------------------------------------------------------------------------------------------------------------------------

1.Substituted by Act 40 of 2002, section 6, for "the Corporation may at any time transfer any officer".

--------------------------------------------------------------------------------------------------------------------------------------------------------



The Corporation and every acquiring company shall, in the discharge of its functions, be guided by such directions in regard to matters of policy involving public interest as the Central Government may give.
Last updated on July, 2016

Find a Lawyer

Legal Hall of Fame

The current Legal Luminaries of India, the credible names in the legal circle along with those who would be the leading stars of the next decade. These are some of the reliable names in field of law. Nominate the Legal Stars of tomorrow

More

Recent Judgment


Sudha Mishra vs. Surya Chandra Mishra( R.F.A 299 of 2014

The Hon'ble High Court of Delhi in Sudha Mishra vs. Surya Chandra Mishra (R.F.A 299 of 2014)has ruled that a woman has a right over the property of her husband but she cannot claim a right to live in the house of her parents-in-law

More

Bare Acts

Helpline Law provides a user friendly compendium of Indian Law & Bare Acts. Get a complete list & detail of Indian Bare Acts, with amendments and repeals. It comes with easy-to-use features like Search by bare acts & by year. You can even email the information to yourself!

More

Have a Legal Matter ?
Need a Lawyer?

Have a Legal Matter ?

Need a Lawyer?

Male
Female