Indian Bare Acts

Search Alphabatically :

THE GENERAL INSURANCE BUSINESS (NATIONALISATION) ACT, 1972

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

Year : 1972



(1) Except to the extent expressly provided in this Act, on and from the appointed day, the Corporation and the acquiring companies shall have the exclusive privilege of carrying on general insurance business in India.

(2) Subject to the provisions of section 36, any certificate of registration granted under the Insurance Act to any insurer other than an insurer referred to in sub-section (1) shall, on and from the appointed day, cease to have effect:

Provided that nothing in this sub-section shall apply to the carrying on by the Life Insurance Corporation of life insurance business and capital redemption and annuity certain business.

24A - 1* Exclusive privilege of Corporation and acquiring companies to cease

Notwithstanding anything contained in this Act, the exclusive privilege of the Corporation and the acquiring companies of carrying on general insurance business in India shall cease on and from the commencement of the Insurance Regulatory and Development Authority Act, 1999 and the Corporation and the acquiring companies shall, thereafter, carry on general insurance business in India in accordance with the provisions of the Insurance Act, 1938 (4 of 1938) :]

2*[ Provided that the Corporation shall, on and from the commencement of the General Insurance Business (Nationalisation) Amendment Act, 2002, cease to carry on general insurance business. ]

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

1. Inserted by Act 41 of 1999, section 32 and Schedule III (w.e.f. 19-4-2000).

2. Inserted by Act 40 of 2002, section 7.

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



1[***]

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

1. Omitted by the Insurance Laws (Amendment) Act, 2015 w.e.f. 26.12.2014 for the following :-

"25. Properties in India not to be insured with foreign insurers except with permission of Central Government.-

(1) No person shall take out or renew any policy of insurance in respect of any property in India or any ship or other vessel or aircraft registered in India with an insurer whose principal place of business is outside India save with the prior permission of the Central Government.

(2) If any person contravenes any provision of sub-section (1), he shall be punishable with imprisonment for a term which may extend to one year, or with fine which may extend to one thousand rupees, or with both."

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



For the purposes of the Income-tax Act, 1961 (43 of 1961), every acquiring company shall be deemed to be an Indian company and a company in which the public are substantially interested.



An acquiring company may, having regard to its financial condition on the 13th day of May, 1971 or the financial condition on the said date of any existing insurer whose undertaking has been transferred to and vested in it under this Act reduce the liabilities which have arisen under contracts of general insurance entered into before the said date in such manner and subject to such conditions as it thinks fit:

Provided that no such reduction shall be made except in accordance with specific proposals made by the acquiring company in this behalf and approved by the Central Government.



(1) Where an existing insurer has at any time within five years before the 13th day of May, 1971-

(a) Made any payment to any person without consideration;

(b) Sold or disposed of any property of the insurer without consideration or for an inadequate consideration;

(c) Acquired any property or rights for an excessive consideration;

(d) Entered into or varied any agreement so as to require an excessive consideration to be paid or given by the insurer;

(e) Entered into any other transaction of such an onerous nature as to cause a loss to, or impose a liability on, the insurer exceeding any benefit accruing to the insurer,and the payment, sale, disposal, acquisition, agreement or variation thereof or other transaction was not reasonably necessary for the purpose of the general insurance business of the insurer or was made with an unreasonable lack of prudence on the part of the insurer, regard being had in either case to the circumstances at the time, the acquiring company may apply for relief to the court in respect of such transaction, and all parties to the transaction shall, unless the court otherwise directs, be made parties to the application.

(2) The Court may make such order against any of the parties to the application as it thinks just having regard to the extent to which those parties were respectively responsible for the transaction or benefited from it and all the circumstances of the case.

(3) Where an application is made to the Court under this section in respect of any transaction and the application is determined in favour of the acquiring company, the Court shall have exclusive jurisdiction to determine any claim outstanding in respect of the transaction.



(1) Where any property appertaining to an existing insurer has been transferred to and vested in an Indian insurance company under section 5,-

(a) Every person in whose possession, custody or control any such property may be, shall deliver the property to the Indian insurance company forthwith;

(b) Any person who immediately before such vesting has in his possession, custody or control any books, documents or other papers relating to an existing insurer shall be liable to account for the said books, documents and papers to the Indian insurance company, and shall deliver them to that company or to such person as that company may direct.

(2) In particular, all the assets of an existing insurer appertaining to the undertaking held in deposit by the Reserve Bank of India under the Insurance Act or by trustees in trust shall be delivered to the Indian insurance company.

(3) Without prejudice to the other provisions contained in this section, it shall be lawful for each Indian insurance company to take all necessary steps for taking possession of all properties which have been transferred to and vested in it under this Act.



If any person willfully withholds or fails to deliver to an Indian insurance company as required by section 29 any property or any books, documents or other papers which may be in his possession or unlawfully retains possession of any property of an existing insurer which has been transferred to and vested in an Indian insurance company under section 5 or willfully applies any such property to purposes other than those expressed in or authorised by this Act, he shall, on the complaint of the Indian insurance company, be punishable with imprisonment for a term which may extend to one year, or with fine which may extend to one thousand rupees, or with both.



Every officer or other employee of the Corporation or of an acquiring company shall be deemed to be a public servant for the purposes of Chapter IX of the Indian Penal Code (45 of 1860).



Every officer of the Central Government and every officer or other employee of the Corporation and of any acquiring company shall be indemnified by the Central Government or the Corporation or the acquiring company, as the case may be, against all losses and expenses incurred by him in, or in relation to, the discharge of his duties under this Act except such as have been caused by his own willful act or default.



No provision of law relating to the winding up of companies shall apply to the Corporation or to an acquiring company, and neither the Corporation nor any such company shall be placed in liquidation save by order of the Central Government and in such manner as it may direct.



Any reference to an existing insurer in any law other than this Act or any contract or other instrument shall, in so far as it relates to an acquiring company, be construed as a reference to that company.



Subject to such exceptions, restrictions and limitations, if any, as the Central Government may, by Notification, specify in this behalf, the Insurance Act shall apply to or in relation to the Corporation and every acquiring company as if the Corporation or the acquiring company, as the case may be, were an insurer carrying on general insurance business within the meaning of that Act.

35A - [Omitted]

1[ ***]

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

1.Section 35A inserted by Act 26 of 1988, section (w.r.e.f.1-4-1988) and omitted by Act 20 of 2002, section 158 (w.e.f. 1-6-2002).

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



(1) Nothing contained in this Act shall apply in relation to-

(a) Any general insurance business carried on by a State Government, to the extent to which such insurance relates to properties belonging to it or undertakings owned wholly or mainly by the State Government; or to properties belonging to semi- Government bodies, or any Board or body corporate established by the State Government under any statute or any industrial or commercial undertaking in which the State Government has substantial financial interest, whether as shareholder, lender or guarantor;

(b) Any general insurance business not falling within clause (a)which has been carried on by a State Government before the commencement of this Act, to the extent to which it is necessary to allow such business to run off:

Provided that nothing contained in this clause shall be deemed to authorise the State Government to issue any new policies or renew any existing policies;

(c) Any insurer whose business is being voluntarily wound up or is being wound up by a Court;

(d) The insurance business carried on by the Calcutta Hospital and Nursing Home Benefits Association Limited;

(e) The insurance business carried on by the Export Credit Guarantee Corporation Limited and the Deposit Insurance Corporation1established under section 3 of the Deposit Insurance Corporation Act, 1961 (47 of 1961)2;

(f) Any scheme in existence immediately before the 14th day of May, 1971 or any scheme framed after the said day with the approval of the Central Government for the insurance of crops or of cattle or of flood risks or of war or emergency risks.

(2) If the Central Government is satisfied that an insurer, whether established before or after the appointed day, carries on only such general insurance business as is not carried on ordinarily by insurers, it may, by notification, direct that nothing contained in this Act sh all apply to such insurer.

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

1. Any reference to the Deposit Insurance Corporation be constructed as a reference to the Deposit Insurance and Credit Guarantee Corporation (w.e.f. 15-7-1978) vide section 8 of the Deposit Insurance Corporation (Amendment and Miscellaneous Provisions) Act, 1978 (21 of 1978).

2. By section 8 of the Deposit Insurance Corporation (Amendment and Miscellaneous Provisions) Act, 1978 (21 of 1978) nomenclature of the Act has been amended. Now it stands as the Deposit Insurance and Credit Guarantee Corporation Act, 1961 (47 of1961).

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



No act or proceeding of the Corporation or of an acquiring company shall be called in question merely on the ground of the existence of any vacancy in, or defect in the constitution of the Corporation or the company.



No suit, prosecution or other legal proceeding shall lie against any officer of the Central Government or officer or other employee of the Corporation or of the acquiring company for anything which is in good faith done or intended to be done under this Act.



(1) The Central Government may, by notification, make rules to carry out the provisions of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, rules made under this section may provide for-

(a) The manner in which the profits, if any, and other moneys received by the Corp oration may be dealt with;

1*[(b) The conditions, if any, subject to which the Corporation shall carry on reinsurance business;

(ba) The conditions, if any,subject to which the acquiring companies shall carry on general insurance business. ]

(c) The terms and conditions subject to which any reinsurance contracts or treaties may be entered into;

(d) The form and manner in which any notice or application may be given or made to the Central Government;

(e) The reports which may be called for by the Central Government from the Corp oration and the acquiring companies;

(f) Any other matter which is required to be, or may be, prescribed.

(3) Every rule made under this section and every notification issued under section 35 sh all be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or notification or both Houses agree that the rule or notification should not be made, the rule or notification sh all thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment sh all be without prejudice to the validity of anything previously done under that rule or notification.

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

1. Substituted by Act 40 of 2002, section 8, for clause (b).

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



[Repealed by the Repealing and Amending Act, 1978 (38 of 1978), section 2 and Schedule I (w.e.f. 26-11-1978).]

THE SCHEDULE
(See Section 11)

AMOUNT TO BE PAID

PART A

S.No.
Name of Indian insurance Company
Amount to be paid
1.All India General Insurance Company Ltd.10,00,000
2.
Anand Insurance Company Ltd.
Preference shares
Equity shares


3,50,000
2,00,000
3.
Bhabha Marine Insurance Company Ltd.54,448
4.
Bharat General Reinsurance Ltd.
Preference shares
Ordinary shares
8,18,000
13,49,844
5.
British India General Insurance Company Ltd.37,50,000
6.
Calcutta Insurance Company Ltd.7,49,442
7.
Central Mercantile Assurance Company Ltd.
3,38,499
8.
Clive Insurance Company Ltd.26,12,600
9.
Commonwealth Assurance Company Ltd.1,000
10.
Concord of India Insurance Company Ltd.39,77,100
11.
Devkaran Nanjee Insurance Company Ltd.16,80,000
12.
General Assurance Society Ltd.8,06,000
13.
Hercules Insurance Company Ltd.
87,48,000
14.
Hindustan General Insurance Society Ltd.15,52,500
15.
Hindustan Ideal Insurance Company Ltd.25,20,605
16.
Howrah Insurance Company Ltd.975
17.
Hukumchand Insurance Company Ltd.10,00,000
18.
India Reinsurance Corporation Ltd.2,05,02,200
19.
Indian Guarantee & General Insurance Company Ltd. 
1,95,69,760
20.
Indian Mercantile Insurance Company Ltd.50,33,195
21.
Indian Merchants' Marine Insurance Company Ltd.2,28,753
22.
Indian Ocean Insurance Company Ltd. 
1,00,000
23.
Indian Trade & General Insurance Company Ltd.
61,21,200
24.
Jalanath Insurance Ltd.10,42,955
25.
Jupiter General Insurance Company Ltd.26,24,445
26.
Kalyan Marine Insurance Company Ltd.1,79,880
27.
Liberty Insurance Company Ltd.1,000
28.
Madras Motor & General Insurance Company Ltd.
1,77,69,600
29.
Madura Insurance Company Ltd.
Preference shares
Ordinary shares
Deferred shares

700
15,83,900
12,500
30.
Marine & General Insurance Company Ltd.8,95,300
31.
Mother India Fire & General Insurance Company Ltd.
7,44,345
32.
Motor Owners' Insurance Company Ltd.
1,65,575
33.
Naranji Bhanabhai & Company Ltd.49,200
34.
Narhari Marine Insurance Company Ltd. 2,36,400
35.
National Insurance Company Ltd.
60,58,150
36.
Neptune Assurance Company Ltd.
10,00,000
37.
New Great Insurance Company of India Ltd.43,50,000
38.
New India Assurance Company Ltd.8,20,37,678
39.
New Merchants Insurance Company Ltd.68,912
40.
New Premier Insurance Company Ltd.1,21,110
41.
Northern India General Insurance Company Ltd.
998
42.
Oriental Fire & General Insurance Company Ltd.
2,43,98,000
43.
Pandyan Insurance Company Ltd.90,00,000
44.
Pioneer Fire & General Insurance Company Ltd.
11,82,610
45.
Porbandar Insurance Company Ltd.
59,194
46.
Prachi Insurance Company Ltd.
21,375
47.
Ruby General Insurance Company Ltd.1,38,74,000
48.
Shree Mahasagar Vima Company Ltd. 
1,18,252
49.
South India Insurance Company Ltd.60,63,000
50.
Sterling General Insurance Company Ltd.
Preference shares
Ordinary shares

23,000
16,08,139
51.
Triton Insurance Company Ltd.47,07,180
52.
United India Fire & General Insurance Company Ltd.
21,39,991
53.
Universal Fire & General Insurance Company Ltd.24,71,618
54.
Vanguard Insurance Company Ltd.
896
55.
Vulcan Insurance Company Ltd.
32,49,617
                       
PART B

S.No.
          Name of Insurer
Amount to be paid
1.Cooperative Fire & General Insurance Society Ltd.18,69,000
2.
Cooperative General Insurance Society Ltd.5,93,000
3.
Indian Mutual General Insurance Society Ltd.
1,40,000
4.
Life Insurance Corporation of India
2,81,34,000
5.
Millowners' Mutual Insurance Association Ltd. 12,89,000
6.
Orissa Co-operative Insurance Society Ltd.
2,83,000
7.
Reinsurance Association of India (International) Ltd.
13,000
8.
Union Co-operative Insurance Society Ltd.37,60,000
9.
Alliance Assurance Company Ltd.36,65,000
10.
American Insurance Company3,30,000
11.
Atlas Assurance Company Ltd.64,85,000
12.
Baloise Insurance Company Ltd.
22,67,000
13.
British Aviation Insurance Company Ltd.1,000
14.
Caledonian Insurance Company81,000
15.
Century Insurance Company Ltd. 
6,04,000
16.
Commercial Union Assurance Company Ltd.85,20,000
17.
Eagle Star Insurance Company Ltd.37,12,000
18.
Gerling Global Reinsurance Company Ltd.1,000
19.
Great American Insurance Company Ltd.3,81,000
20.
Guardian Assurance Company Ltd.
19,98,000
21.
Hanover Insurance Company42,13,000
22.
Hartford Fire Insurance Company
2,96,000
23.
Home Insurance Company 3,73,000
24.
Legal & General Assurance Society Ltd. 
5,28,000
25.
Liverpool and London and Globe Insurance Company Ltd. 
8,23,000
26.
London Assurance
12,30,000
27.
London Guarantee & Accident Company Ltd.
40,000
28.
London & Lancashire Insurance Company Ltd.
47,70,000
29.
L'Union Fire Accident and General Insurance Company Ltd.1,000
30.
National Employers' Mutual General Insurance Association Ltd.3,17,000
31.
National Insurance Company of New Zealand Ltd.
1,000
32.
New Hampshire Insurance Company19,08,000
33.
New Zealand Insurance Company Ltd.10,84,000
34.
Norwich Union Fire Insurance Society Ltd.
31,43,000
35.
Phoenix Assurance Company Ltd. 
2,63,000
36.
Provincial Insurance Company Ltd.
1,000
37.
Queensland Insurance Company Ltd.10,31,000
38.
Royal Exchange Assurance49,62,000
39.
Royal Insurance Company Ltd.73,28,000
40.
Scottish Union & National Insurance Company43,15,000
41.
SKandia Insurance Company Ltd.
1,000
42.
South British Insurance Company Ltd.
18,42,000
43.
Sun Insurance Office Ltd.25,86,000
44.
Switzerland General Insurance Company Ltd.6,35,000
45.
Threadneedle Insurance Company Ltd.
1,000
46.
Tokio Marine & Fire Insurance Company Ltd.
92,000
47.
Union Insurance Society of Canton Ltd.
5,89,000
48.
United Scottish Insurance Company Ltd.83,000
49.
Welfare Insurance Company Ltd.
1,000
50.
Western Assurance Company 
13,92,000
51.
Yorkshire Insurance Company Ltd.
16,31,000
52.
Zurich Insurance Company Ltd.
1,000
            
Last updated on October, 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