(1A) Every Insurer shall, at all times, on or after the commencement of the Insurance Regulatory and Development of Authority Act, 1999, maintain an excess of the value of his assets over the amount of his liabilities of not less than the amount arrived at as follows (hereinafter referred to in this section referred to as the “required solvency margin”), namely:-, in the case of an insurer carrying on life insurance business, the required solvency margin shall be the higher of the following amounts-, fifty crores of rupees (one hundred crores of rupees in case of reinsurers); or, the aggregate sums of the results arrived at in items (I) and (II) stated below:-. -. Schemes for partial winding-up of insurance companies. (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. Termination of appointment of Administrator, 52E. Power of Authority to issue directions regarding re-insurance treaties, etc. Councils of the Insurance Association of India, 64D. (1) The Central Government may, for the purposes of Sections 52-H to 52J, constitute a tribunal which shall consist of a Chairman and two other members. (2) Every provident societyshall at the expiry of. (7) Every contract between an insurer and a person acting on behalf of such insurer who, before the commencement of the Insurance (Amendment) Act, 1950), has been employing insurance agents for the purpose of life insurance business, which is subsisting on such commencement, shall terminate after the expiration of ten years from such commencement, if it does not terminate earlier: (8) Any such contractas is referred to in sub-section (7) which was subsisting on the lst day of January, 1949, but has terminated or has been terminated before the commencement of the Insurance (Amendment) Act, 1950, shall be subject to the maximum limits specified in clause (i) of the proviso to sub-section(7) as respects remuneration, if any, payable on business procured before the termination of the contract. (2) Notwithstanding anything contained in sub-section (1), other cooperative societies may be admitted as members of a co-operative life insurance society, without being eligible to any dividend, profit or bonus. (2) The transfer or assignment shall be complete and effectual upon the execution of such endorsement or instrument duly attested but except wherethe transfer or assignment is in favour of the insurer shall not be operative as against an Insurer and shall not confer upon the transferee or assignee, or his legal representative, any right to sue for the amount of such policy or the moneys secured thereby until a notice in writing of the transfer or assignment if and either the said endorsement or instrument itself or a copy thereof certified to be correctby both transferor and transferee or their duly authorised agents have been delivered to the insurer: (3) The date on which the notice referred to in sub-section (2) is delivered to the insurer shall regulate the priority of all claims under a transfer or assignment as between persons interested in the policy: and where there is more then one instrument of transfer or assignment, the priority of the claims under such instruments shall be governed by the order in whichthe notices referred to in sub-section (2) are delivered. association of persons or a body of individuals, means any member controlling the affairs thereof. Penalty for carrying on insurance business in contravention of, 104. (5) The Authority shall be entitled at any time to take such steps as he may consider necessary for the inspection or verification of theassets invested in compliancewith Section 27 or for the purpose of securing the particulars necessary to establish that the requirements of that section have been complied with; the insurer shall comply with any requisition made in this behalf by the Authority, and if he fails to do so within two months from the receipt of the requisition he shall be deemed to have made default in complying with the requirements of this section. but does not include any assets specifically held against any fund or portion thereof in respect of which the Authority is satisfied that such funds or portion thereof, as the case may be, is regulated by the law of any country outside India or in respect of enrich the Authority is satisfied that it would not be in the interest of the insurer to apply the provisions of this section. any other reports on which the scheme of amalgamation or transfer was founded; and the balance-sheets, reports and abstracts referred, that the Authority may exempt the provident society or societies concerned from furnishing to him and from keeping open for inspection any one or more of the above documents. (7) Where the person contravening sub-section (6) is a company or a firm, then, without prejudice to any other proceedings which may be taken against the company or firm, every director, manager, secretary or any other officer of the company, and every partner of the firm who is knowingly a party to such contravention shall be punishable with fine which may extend to five hundred rupees. (7) There shall also be paid simple interest at the rate of three per cent per annum on the amount of the compensation for the period from the appointed day to the date on which payment of the compensation becomes due. An insurance agent is a licensee who “transacts insurance” on behalf of the insurer (Cal. April 9, 2019. When Administrator for management of insurance business may be appointed. (6) Where a registration is cancelled under. Authorities of the Life Insurance Council and the General Insurance Council. (5) The provisions of Section 86D of the Indian Companies Act, 1913 (7 of 1913), shall not apply to a loan granted to a director of a provident society being a company if the loan is one granted on the security of a policy on which the society bears the risk and the policy was issued to the director on his own life and the loan is within the surrender value of the policy. (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. 34G. Insurance Regulatory and Development Authority of India. Limitation on employment of managing agents and on the, 32A. Yet many in the industry may not be aware of the legal requirements for handling or storing this information. (6) Where the nominee or, if there are more nominees than one, a nominee or nominees survive the person whose life is insured, the amount secured by the policy shall be payable to such survivor or survivors. Prohibition of common officers and requirement as to whole time, 32B. (B) Every person who intends to act as a surveyor or loss assessoraftertheexpiry of a period of one year from the commencement of the Insurance (Amendment) Act, 1968, but before the commencement of the Insurance Regulatory and Development Authority of India Act, 1999,shall make an application to the Authority within such time, in such form, in such manner and on payment of such fee, notexceeding rupees two hundred and fifty, as may be prescribed. An agent in charge (AIC) is defined as the licensed and appointed agent responsible for the supervision of all individuals within an insurance agency. (3) Where after the commencement of the Insurance (Amendment) Act, 1941 (13 of 1941), a provident society is to be wound up in pursuance of thissection, or where, whether before or after the commencement of that Act, a provident society ceases to carry on business on the dividing principle the provisions of sub-sections (2) and (3) of Section 52 shall, so far as may be apply in like manner as they apply to an insurer ceasing to carry on business on thedividing principle. Power of court to order restoration of property of insurer or, 107. (2) A receipt granted by the Court for any such payment shall be a satisfactory discharge to the insurer for the payment of such amount. 106A. Conversion of company limited by shares into company limited by, 10. Learn More, Analysis and interpretation of the latest innovations in insurance coverage and discussions of risk management best practices. Submission of returns to Authority, 83. (3) Notwithstanding anything contained in sub-section (1), an insurer may, subject to the provisions contained in the next succeeding sub-sections, invest or keep invested any part of his assets otherwise than in an approved investment specified in subsection (1), if-, (i) after such investment, the fatal amounts of all such investments of the insurer do not exceed twenty-five per cent of his assets, and. (13) The provisions of section 37 shall not apply to an amalgamation given effect to under provisions of this section. (3) The life insurance fund shall be as absolutely the security of the life policy-holders as though it belonged to an insurer carrying on no other business than life insurance business and shall not be liable for any contracts of the insurer for which it would not have been liable had the business of the insurer been only that of life insurance and shall not be applied directly or indirectly for any purposes other than those of the life insurance business of the insurer. (3) A licence issued under this section, after the commencement of the Insurance Regulatory and Development Authority of India Act, 1999, shall remain in force for a period of three years only from the date of issue, but shall, if the applicant being an individual does not, or being a company or firm any of its directors or partners, does not suffer from any of the disqualification mentioned in clauses (b), (c), (d), (e), (ea) and (f) of sub-section (4) and the application for renewal of the licence reaches the issuing authority at least thirty days before the date on which the licence ceases to remain in force, be renewed for a period of three years at any one time on payment of the fee determined by the regulations made by the Authority which shall not be more than rupees two hundred and fifty, and an additional fee of an amount determined by the regulations not exceeding rupees one hundred by way of penalty, if the application for renewal of the licence does not reach the issuing authority at least thirty days before the date on which the licence ceases to remain in force. Mutual Insurance Companies and Co-operative Life, . Agents fall into one of three designations: 1) Exclusive or captive agent: The agent represents only one company or a group of companies under similar management, i.e. (b) in the case referred to in clause (b) of that sub-section, fifteen per cent of the policy. (4) A transfer or assignment of a policy made in accordance with section 38 shall automatically cancel a nomination: (5) Where the policy matures for payment during the lifetime of the person whose life is insured or where the nominee or, if there are more nominees than one, all the nominees die before the policy-holder or his heirs or legal representatives or the holder of a succession certificate, as the case may be. (5) The authority which issued any certificate under this section may issue a duplicate certificate to replace a certificate lost, destroyed or mutilated on payment of the prescribed fee, which shall not be more than two rupees. (7) Any person who acts as an insurance agent without holding a licence issued under this section to act as such shall be punishable with fine which may extend to five hundred rupees., and any insurer or any person acting on behalf of an insurer, who appoints as an insurance agent any person not licensed to act as such or transacts any insurance business in India through any such person shall be punishable with fine which may extend to one thousand rupees. (1) As soon as the affairs of a provident society are fully wound up the liquidator shall prepare an account of the winding up showing how the winding up has been conducted and the property of the society has been disposed of and shall call a meeting of the members, creditors and contributories for the purpose of laying before it the account and giving any explanation there of. (5) Where any event occurs giving rise to circumstances, the existence of which at the time of the grant of any subsisting loan or advance would have made such grant a contravention of this section, such loan or advance shall, notwithstanding anything in any contract to the contrary, be repaid within three months from the occurrence of such event. (4) The provisions of this section shall not apply to an insurer specified insub-clause (c) of Clause (9) of Section 2. balance-sheets in respect of the insurance business of each of the provident societies concerned in such amalgamation or transfer. (i) the scheme has been placed before a meeting of the shareholders for their opinion and has been forwarded to the officer together with the opinion of the shareholders thereon, and. (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. a gross sum of one thousand rupees or less whether paid for payable in a lump sum or in two or more installments over a certain period. Insurance agents are the legal representatives of insurers, rather than policyholders, with the right to perform certain acts on behalf of the insurers they represent, such as to bind coverage. (6) Where all the monies and other assets belonging to an existing trust are transferred to, and vested in, the Advisory Committee under sub-section (3), the trustees of such trust shall, on the commencement of the Insurance (Amendment) Act, 1968, be discharged from the trust except as respects things done or omitted to be done by them before such commencement. It simplifies and organizes some statutory language to improve efficiency, permits the use of new technology and reduces costs associated with issuing and renewing insurance licenses. Returns of investments relating to the assets and changes therein, 30. (3) Where any person not being a chief agent, principal agent or special agent is in respect of remuneration exceeding the sum of five thousand rupees in any year, the Authority may, by notice in writing, require the insurer to submit certified copies of the agreement entered into between the insurer and any such person, and the insurer shall comply with any such requisition within the time specified in the notice. Insurers to be subject to this Act while liabilities Main unsatisfied, 2E. (1) An insurer shall, at all times, before the commencement of the Insurance Regulatory and Development Authority of India Act, 1999, maintain an excess of the value of his assets over the amount of his liabilities of not less than the amount arrived at as follows (hereafter in this section referred to as the "relevant amount"), namely—, (i) in the case of an insurer whose total premium income less reinsurances in respect of general insurance brininess (hereafter in this subsection referred to as the "said income") in the preceding twelve months did not exceed five crores of rupees, one fifth of the said income subject to a minimum of, five lakhs of rupees in the case of an insurer who is a cooperative society registered under the Cooperative Societies Act, 1912 (2 of- 1912), or any other law for the time being in force in any State relating to co-operative societies, or, ten lakhs of rupees in the case of any other insurer; and. FSCO found an overall compliance level of 66 per cent during its 2017/18 on-site examinations. Supplementary information and reports of alterations in particulars, furnished with application for registration, 71. Insurance agents are employed by the companies and the company gives necessary training to the agents. Power to make rules in respect of matters in this part. Penalty for default in complying with or act in contravention of, this Act. No risk to be assumed unless premium is received in advance, 64VC. (2) The deposit referred to in sub-section (1) may be made in instalments, of which the first shall be a payment, made before or at the time theapplication for registration under this Act is made, of not less than twenty. An insurance agent is a person who transacts insurance, including 24-hour care coverage as defined in Section 1749.02, other than life, disability, or health insurance, on behalf of an admitted insurance company. insurer. 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