(2) All insurers and provident societies incorporated or domiciled in, shall be known as members of the Insurance Association of India, and all insurers and provident societies incorporated or domiciled elsewhere than in, shall be known as associate members of that Association.. The simplest definition of an insurance agent is simply: A person employed to sell insurance policies.. 64UC. (3) Notwithstanding anything contained in this Part, until the Secretary to the Advisory Committee is nominated under sub-section (2) of Section 64UA, the Secretary to the Tariff Committee holding office immediately before the commencement of the Insurance (Amendment) Act, 1968, shall function as the Secretary and shall be deemed to have been duly nominated under this Part. (1) Every insurer carrying on lifeinsurance business shall, in respect of the life-insurance business transacted by him in India, and also in the case of an insurer specified in sub-clause (, (b) the 31st day of December, 1951, where the last investigation by an actuary before such commencement was at a date-. (13) Without prejudice to the powers given to the Authoritybysubsection (11), nothing contained in this section shall be deemed to require any insurer to realise any investment made in conformity with the provisions of subsection (1) after the commencement of this Act which after the making thereof,has ceased to be an approved investment within the meaning of thissection. Power of Central Government to make scheme. (2) In particular and without prejudice to the generality of the foregoing power, such rules may prescribe. (b) general business, that is to say, all insurance business which is not life business, and shall include the effecting and carrying out by any person, not being a person licensed, approved, designated or otherwise regulated under the Monetary Authority of Singapore Act (Cap. For the purposes of this-section, the year 1961 shall be deemed to mean the period from the 1st April to the 31st December of that year. (6) The provisions of Sections 52H and 52J to 52M and of any scheme made under this section shall have effect notwithstanding anything to the contrary contained in any other provision of this Act or in any other law or any agreement, award or other instrument for the time being in force. not being of the nature of a private company. (2) Any information supplied under this section shall be certified by a principal officer of the insurer and if the notice so requires also by an auditor. specify the proportions in which the said percentage shall be allocated among the Indian re-insurers. Where the premium is tendered by postal money-order or cheque sent by post, the risk may be assumed on the date on which the money-order is booked or the cheque is posted, as the case may be. (6) If the society fails to comply with any direction issued under subsection (5), the Authority may, after giving notice to the society and giving it an opportunity to be heard, apply to the Court for the winding up of the society. Power to restrict payment of excessive remuneration, 32. 1. Working capital of Mutual Insurance Companies and Co-operative, 98. Penalty for failure to comply with section 32C. (2) The Central Government, if it is of opinion after considering the report that it is necessary or proper to do so, may appoint an Administrator to manage the affairs of the insurer under the direction and control of the Authority. (5B) When a registration is cancelled the insurer shall not, after the cancellation has taken effect, enter into any new contracts of insurance, but all rights and liabilities in respect of contracts of insurance entered into by him before such cancellation takes effect shall, subject to the provisions of sub-section (5D), continue as if the cancellation had not taken place. , Councils of the Association and Committees thereof, Incorporation of the Insurance Association of, 64A. (1) The Tribunal shall have the powers of a Civil Court, while trying a suit, under the Code of Civil Procedure, 1908 (5 of 1908), in respect of the following matters, namely:-. (7) If a person legally entitled to the books, accounts, papers, receipts, vouchers, reports, or other documents seized under sub-section (1) objects for any reason to the approval given by the Chairperson of the Authority under sub-section (5), he may make an application to the Central Government stating therein the reasons for such objection and requesting for the return of the books, accounts, papers, receipts, vouchers, reports, or other documents. If you’re interested in becoming an insurance agent, but aren’t … 12222 Merit Drive, Suite 1600 Online subscribers get access to a fully searchable archive of more than 200 issues! (2) The Court having jurisdiction for the purposes of sub-section (1) shall be the principal Court of civil jurisdiction within whose locallimits the principal place of business of the insurer concerned is situate. actuarial reports and abstracts in respect of the insurance business of each of the provident societies so concerned. and may charge the normal commission on such sale or on such investment. 2 of the Indian Companies Act, 1913 (7 of 1913); (17) "special agent" means a person who, not being a salaried employee of an insurer, in consideration of any commission, procures life insurance business for the insurer whether wholly or in part by employing or causing to be employed insurance agents on behalf of the insurer, but does not include a chief agent. (9) An insurer shall not keep more than three per cent. (5) There shall be appended to every such abstract a statement signed by the actuary giving such information as may be prescribed. 64VA. (2) Any scheme prepared under this section shall provide for the allocation and distribution of the assets and liabilities of the company between any classes of business affected (including the allocation of any surplus assets whichmay arise on the proposed winding-up) for any future rights of every class of policy-holders in respect of their policies and for the manner of winding-up any of the affairs of the company which are proposed to be wound up and may contain provisions for altering the memorandum of the company with respect to its objects and such further provisions as may be expedient for giving effect to the scheme. Deposits to be made by Mutual Insurance Companies and Co-operative, 99. Insurance brokers, on the other hand, represent multiple insurance companies to ensure that you are connected with the right insurance for you. Sections 3A, 27B, 28B, 33, etc., to apply to general insurance business of. Powers of the Executive Committees to act together in certain cases, 64R. An insurance agent is a person or organization who/that solicits, negotiates, or instigates insurance contracts on behalf of an insurer and can be independent or an employee of the insurer. Powers of Administrator respecting property liable to attachment under Section 106. If a person fails to comply with the provisions of section 27 or section 27A or section 27B or section 27C or section 27D, he shall be liable to a penalty not exceeding five lakh rupees for each such failure. (4)A public company as aforesaid which carries on life insurance business-. Regulation of employment of chief agents and special agents, 42D. Transportation Risk & Insurance Professional, Management Liability Insurance Specialist, Professional Liability Claims for Contractors and Business Interruption Coverage for COVID in Deep Dives, Hallmark, Mt. 52-I or not (hereafter In this section and in Section 52-1 to 52-N and in the Eighth Schedule referred to as the acquired insurer), by order, direct that the assets and liabilities of the said undertaking, shall vest in the acquiring insurer, either on the publication of the notified order or no such other date as may be specified in this behalf in the direction. Power of Central Government to make scheme, 52J. Enforcement Actions Published Date: 11 October 2019. statement that the amount required to be deposited by section 7 or section 98 before application for registration is made has been deposited together with a certificate from the Reserve Bank of India showing the amount deposited; (d) where the provisions of section 6 or section 97 apply, a declaration verified by an affidavit made by the principal officer of the insurer authorised in that behalf that the provisions of those sections as to paid-up equity capital or working capital have been complied with; (e) in the case of an insurer having his principal place of business or domicile outside India, a statement verified by an affidavit made by the principal officer of the insurer setting forth the requirements (if any) not applicable to nationals of the country in which such insurer is constituted, incorporated or domiciled which are imposed by the laws or practice of that country upon Indian nationals as a condition of carrying on insurance business in that country; (f) a certified copy of the published prospectus, if any, and of the standard policy forms of the insurer and statements of the assured rates, advantages, terms and conditions to be offered in connection with insurance policies together with a certificate in connection with life insurance business by an actuary that such rates, advantages, terms and conditions are workable and sound: (g) the receipt showing payment of fee as may be determined by the regulations which shall not exceed fifty thousand rupees for each class of business as may be specified by the regulations made by the Authority; (h) such other documents as may be specified by the regulations made by the Authority. (c) any prescribed assets shall, subject to such conditions,if any, as may be prescribed, be deemed to be assets invested or kept invested in approved investments specified in sub-section (1) of section 27A. (3) No public company as aforesaid which carries on life insurance business shall, after the commencement of the Insurance (Amendment) Act, 1950(47 of 1950), issue any shares other than ordinary shares of the nature specified in sub-section (l). Power of Court to order restoration of property of insurer or compensation in certain cases, (l) If, on the application of the Authority or an Administrator appointed under Section 52-A or an insurer or any policy-holder or any member of an insurance company or the liquidator of an insurance company (in the event of the insurance company being in liquidation), the Court is satisfied—, that any insurer (including in any case where the insurer is an insurance company any person who has taken part in the promotion or formation of the insurance company or any past or present director, has misapplied or retained or become liable or become accountable for any money or property of the insurer; or, has been guilty of any misfeasance or breach of trust in relation to the insurer; or, that any person, whether he is or has been in any way connectedwith the affairs of the insurer or not, is in wrongful possession of any money or property of the insurer or having any such money or property in his possession wrongfully withholds it or has converted it to any use otherthan that of the insurer; or. All Right Reserved. (2) If the arrangement involves a reduction of the amount of the insuranceand other contracts of the transferor insurer or of any or all of the insurers concerned in the amalgamation, the Authority may approve the arrangement, reducing the amount of such contracts upon such terms and subject to such conditions as he may think proper, and the reduction of contracts as approved by the Authority shall be valid end binding on all the parties concerned. (3) If the amount of compensation offered in terms of sub-section (2) is not acceptable to the acquired insurer, he may, before such date as may be notified by the Central Government in the official Gazette, request the Central Government in writing to have the matter referred to the Tribunal constituted under Section 52K. This Act not to apply tocertain insurers, ceasing to enter into new, 3B. (2) The Executive Committee of the General Insurance Council shall consist of the following persons, namely: (a) two officials nominated by the Authority, one as the Chairman and the other as a member; (b) eight representatives of members of the Insurance Association of India carrying on general insurance business elected in their individual capacity by the said members in such manner, from such groups of members and from such areas as may be specified by the Authority, © one non-official not connected with any insurance business, nominated by the Authority and. if the Authority as an alternative to canceling the registration of a society under sub-section (4) of Section 70 applies to the Court in thisbehalf; if while a society is in liquidation the Court thinks fit; if when a society has been proved to be insolvent the Court thinks fit to do so in place of making an order for the winding up of the society; or. (3) The provisions of sub-section (7) of Section 7 shall apply in respect of a co-operative life insurance society as if for the words "under the foregoing provisions of this section" the words and figures "under the provisions of Sec. Explanation- For the purposes of this section,-, “company” means any body corporate, and includes-, an association of persons or a body of individuals, whether incorporated or not; and. Power of the Advisory Committee to regulate rates, advantages, etc. (c) in any other case, thirty-five per cent of the first year's premium, seven and a half per cent of the second and third year's renewal premium, and thereafter five per cent of each renewal premium payable on thepolicy: (2) No person shall pay or contract to pay to a special agent, and no special agent, shall receive or contract to receive, by way of commission or as remuneration in any form, in respect of any policy of life insurance issued in India by an insurer after the 31st day of December, 1950, and effected through a special agent, an amount exceeding—. (4) Any Investigating Authority, directed to make an investigation under sub-section (1), or inspection under sub-section (2) may examine on oath, any manager, managing director, or other officer of the insurer in relation to his bossiness and may administer oaths accordingly. (4) A notification under subsection (2) may also specify the terms and conditions in respect of any business of re-insurance required to be transacted under this section and such terms and conditions shall be binding on Indian re-insurers and other insurers. (2) If a provident society, through inadvertence or otherwise, is without such consent as aforesaid registered by a name identical with that by which an insurer or another provident society already in existence is registered, or so nearly resembling it as to be calculated to deceive, the first-mentioned society shall, if called upon to do so by the Authority on the application of the insurer or the second-mentioned society, change its name within a time to be fixed by the Authority: that nothing in this section shall apply to any provident society carrying on business before the commencement of the Insurance (Amendment) Act, 1946 (6 of 1946), (1) Every provident society shall, in its rules, set forth-, the name, the object and the location of the registered office of the society. (7) Where an investment is in partly paid-up shares, the uncalled liability on such shares shall be added to the amount invested for the purpose of computing the percentages referred to in Clause (a) of sub-section (4) and Clause (a) of sub-section (5). An insurance broker acts for an on behalf of the customer who needs a policy. FSCO found an overall compliance level of 66 per cent during its 2017/18 on-site examinations. An agent acts as a conduit to provide information to insurance buyers. (4) At the meeting so held the creditors shall determine whether an applicationshall be made for the appointment of any person as liquidator in the place of or jointly with the liquidator already appointed, or for the appointment of a committee of inspection, and, if they so resolve and an application accordingly is made at any time not later than fourteen days after the date of the meeting by any creditor appointed for the purpose atthemeeting, the Authority may, if he thinks fit, appoint a suitable person in place of or jointly with the liquidator already appointed, and determine the remuneration to be paid to him and if he considers it desirable, may also appointa committee of inspection. Any order or decision of the Central Government made in pursuance of Section 52-A or Section 52-D shad be final and shall not be called in question in any Court. 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