102. Penalty for default in complying with, or act in contravention of, this Act. —If any person,
who is required under this Act, or rules or regulations made thereunder, —
(a) to furnish any document, statement, account, return or report to the Authority, fails to furnish
the same; or
(b) to comply with the directions, fails to comply with such directions;
(c) to maintain solvency margin, fails to maintain such solvency margin;
(d) to comply with the directions on the insurance treaties, fails to comply with such directions on
the insurance treaties,
he shall be liable to a penalty 7
[of one lakh rupees for each day during which such failure continues or one
crore rupees, whichever is less].
8
[103. Penalty for carrying on insurance business in contravention of section 3.—If a person
carries on the business of insurance without obtaining a certificate of registration under section 3, he shall
1. Subs. by Act 42 of 2002, s. 15, for cause (ii) (w.e.f. 23-9-2002).
2. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for “The Central Government” (w.e.f. 19-4-2000).
3. Subs. by s. 30 and the First Schedule, ibid., for “prescribed” (w.e.f. 19-4-2000).
4. Ins. by Act 62 of 1968, s. 33 (w.e.f. 1-6-1969).
5. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for “Controller” (w.e.f. 19-4-2000).
6. Subs. by s. 30 and the First Schedule, ibid., for sections 102 to 105 (w.e.f. 19-4-2000).
7. Subs. by Act 5 of 2015, s. 87, for “not exceeding five lakh rupees for each such failure and punishable with fine”
(w.e.f. 26-12-2014).
8. Subs. by s. 88, ibid., for sections 103 and 104 (w.e.f. 26-12-2014).
87
be liable to a penalty not exceeding rupees twenty-five crores and with imprisonment which may extend
to ten years.
104. Penalty for contravention of sections 27, 27A, 27B, 27D and 27E. —If a person fails to
comply with the provisions of section 27, section 27A, section 27B, section 27D and section 27E, he shall
be liable to a penalty not exceeding twenty-five crore rupees.]
105. Wrongfully obtaining or withholding property.—If any director, managing director, manager
or other officer or employee of an insurer wrongfully obtains possession of any property or wrongfully
applies to any purpose of the Act, he shall be liable to a penalty 1
[not exceeding one crore rupees].
105A. Offences by companies. —(1) Where any offence under this Act has been committed by a
company, every person who, at the time the offence was committed, was in charge of, and was
responsible to, the company for the conduct of the business of the company as well as the company shall
be deemed to be guilty of the offence and shall be liable to be proceeded against and punished
accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any
punishment, if he proves that the offence was committed without his knowledge or that he had exercised
all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been
committed by a company and it is proved that the offence has been committed with the consent or
connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other
officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of
that offence and shall be liable to be proceeded against and punished accordingly.
Explanation.—For the purposes of this section, —
(a) “company” means any body corporate, and includes—
(i) a firm; and
(ii) an association of persons or a body of individuals whether incorporated or not; and
(b) “director”, in relation to—
(i) a firm, means a partner in the firm;
(ii) an association of persons or a body of individuals, means any member controlling the
affairs thereof.
2
[105B. Penalty for failure to comply with sections 32B, 32C and 32D. —If an insurer fails to
comply with the provisions of section 32B, section 32C and section 32D, he shall be liable to a penalty
not exceeding twenty-five crore rupees.
105C. Power to adjudicate. —(1) For the purpose of adjudication under sub-section (2) of section
2CB, sub-section (4) of section 34B, sub-section (3) of section 40, sub-section (2) of section 41,
sub-sections (4) and (5) of section 42, sub-sections (8) and (9) of section 42D, section 52F and section
105B, the Authority, shall appoint any officer not below the rank of a Joint Director or an equivalent
1. Subs. by Act 5 of 2015, s. 89, for “not exceeding two lakh rupees for each such failure” (w.e.f. 26-12-2014).
2. Subs. by s. 90, ibid., for sections 105B and 105C (w.e.f. 26-12-2014).
88
officer to be an adjudicating officer for holding an inquiry in the prescribed manner after giving any
person concerned a reasonable opportunity of being heard.
(2) Upon receipt of the inquiry report from the officer so appointed, the Authority, after giving an
opportunity of being heard to the person concerned, may impose any penalty provided in sections
aforesaid.
(3) While holding an inquiry, the adjudicating officer shall have power to summon and enforce the
attendance of any person acquainted with the facts and circumstances of the case to give evidence or to
produce any document which in the opinion of the adjudicating officer, may be useful for or relevant to
the subject matter of the inquiry and if on such inquiry, is satisfied that the person has failed to comply
with the provisions of any of the sections specified in sub-section (1), he may recommend such penalty as
he thinks fit in accordance with the provisions of any of those sections.
105D. Factors to be taken into account by the adjudicating officer.—While recommending the
quantum of penalty under section 105C, the adjudicating officer and while imposing such penalty, the
Authority shall have due regard to the following factors, namely: —
(a) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a
result of the default;
(b) the amount of loss caused to the policyholders as a result of the default; and
(c) the repetitive nature of default.]
1
[106 . Power of court to order restoration of property of insurer or compensation in certain
cases. —(1) If, on the application of the 2
[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—
(a) 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,
managing agent, manager, secretary or liquidator) or any officer, employee or agent of the insurer, —
(i) has misapplied or retained or become liable or become accountable for any money or property
of the insurer; or
(ii) has been guilty of any misfeasance or breach of trust in relation to the insurer; or
(b) that any person, whether he is or has been in any way connected with the affairs of the insurer not,
is in wrongful possession of any money or property of the insurer or having any such money or property
in hi s possession wrongfully withholds it or has converted it to any use other than that of the insurer; or
(c) that by reason of any contravention of the provisions of this Act, the amount of the life insurance
fund has been diminished,
the court may examine any such insurer, director, managing agent, manager, secretary or liquidator or any
such officer, employee or agent of the insurer or such other person, as the case may be, and may compel
hi m to contribute such sums to the assets of the insurer by way of compensation in respect of the
misapplication, retainer, misfeasance or breach of trust as the court thinks fit, or to pay such sum as may
be found due from hi m in respect of any money or property of the insurer for which he is liable or
accountable or to restore any money or property of the insurer or any part thereof, as the case may be; and
1. Subs. by Act 54 of 1955, s. 4, for section 106 (w.e.f. 1-11-1955).
2. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for “Controller” (w.e.f. 19-4-2000).
89
where the amount of the life insurance fund has been diminished by reason of any contravention of the
provisions of this Act, the court shall have power to assess the sum by which the amount of the fund has
been diminished and to order the person guilty of such contravention to contribute to the fund the whole
or any part of that sum by way of compensation; and in any of the aforesaid cases the court shall have
power to order interest to be paid at such rate and from such time as the court may deem fit.
(2) Without prejudice to the provisions contained in sub-section (1) or subsection (3), where it is
proved that any money or property of an insurer has disappeared or has been lost, the court shall presume
that every person in charge of, or having a disposing power over, such money or property at the relevant
time (whether a director, manager, principal officer or any other officer) has become accountable for such
money or property within the meaning of sub-clause (1) of clause (a) of sub-section (1), and the
provisions of that sub-section shall apply accordingly, unless such person proves that the money or
property has been utilised or disposed of in the ordinary course of the business of the insurer and for the
purpose of that business or that he took all reasonable steps to prevent the disappearance or loss of such
money or all property or otherwise satisfactorily accounts for such disappearance or loss.
(3) Where the insurer is an insurance company and any of the acts referred to in clauses (a), (b) and
(c) of sub-section (1) has been committed by any person, every person who was at the relevant time a
director, managing agent, manager, liquidator, secretary or other officer of the insurance company shall,
for the purposes of that sub-section, be deemed to be liable for that act in the same manner and to the
same extent as the person who has committed the act, unless he proves that the act was committed
without hi s consent or connivance and was not facilitated by any neglect or omission on hi s part.
(4) Where at any stage of the proceedings against any person under this section (he rein after referred
to as the delinquent), the Court is satisfied by affidavit or otherwise—
(a) that a prima facie case has been made out against the delinquent; and
(b) that it is just and proper so to do in the interests of the policy-holders of an insurer or of the
members of an insurance company,
the court may direct the attachment of—
(i) any property of the insurer in the possession of the delinquent;
(ii) any property of the delinquent which belongs to hi m or is deemed to belong to hi m
within the meaning of sub-section (5);
(iii) any property transferred by the delinquent within two years before the commencement of
proceedings under sub-section (1) or during the pendency of such proceedings, if the Court is
satisfied by affidavit or otherwise that the transfer was otherwise than in good faith and for
consideration.
(5) For the purposes of sub-section (4), the following classes of property shall be deemed to belong to
a delinquent: —
(a) any property standing in the name of any person which is reason of the person being
connected with the delinquent, whether by way of relationship or otherwise, or on account of any
other relevant circumstances appears to belong to the delinquent;
(b) the property of a private company in respect of the affairs of which the delinquent, by himself
or through hi s nominees, relatives, partners or persons interested in any shares of the company is able
to exercise or is entitled to acquire control, whether direct or indirect.
90
Explanation. — For the purposes of this section a person shall be deemed to be a nominee of a
delinquent, if, whether directly or indirectly, he possesses on behalf of the delinquent, or may be required
to exercise on the direction or on behalf of the delinquent, any right or power which is of such a nature as
to enable the delinquent to exercise or to entitle the delinquent to acquire control over the company's
affairs.
(6) Any claim to any property attached under this section or any objection to such attachment shall
be made by an application to the court, and it shall be for the claimant or objector to adduce evidence to
show that the property is not liable to attachment under this section, and the court shall proceed to
investigate the claim or objection in a summary manner.
(7) When disposing of an application under sub-section (1), the court shall, after giving all persons
who appear to it to be interested in any property attached under this section an opportunity of being heard,
make such order as it thinks fit respecting the disposal of any such property for the purpose of effectually
enforcing any liability under this section, and all such persons shall be deemed to be parties to the
proceedings under this section.
(8) In any proceedings under this section the court shall have full power and exclusive jurisdiction to
decide all questions of any nature whatsoever arising thereunder and, in particular, with respect to any
property attached Under this section, and no other court shall have jurisdiction to decide any such
question in any suit or other legal proceeding.
(9) In making any order with respect to the disposal of the property of any private company referred
to in clause (b) of sub-section (5), the court shall have due regard to the interests of all persons interested
in such property other than the delinquent and persons referred to in that clause.
(10) This section shall apply notwithstanding that the act is one for which the person concerned may
be criminally liable.
(11) In proceedings under this section the court shall have all the powers which a Court has under
section 237 of 1
[the Companies Act, 2013 (18 of 2013)].
(12) This section shall apply in respect of a provident society as defined in Part III as it applies in
respect of an insurer.
(13) On and from and commencement of the Insurance (Second Amendment) Act, 1955, the Court
entitled to exercise jurisdiction under this section shall be the High Court within whose jurisdiction the
registered office of the insurer is situate (he rein after referred to as the High Court) and any proceedings
under this section pending at such commencement in any Court other than the High Court shall, on such
commencement, stand transferred to the High Court.
(14) The High Court may make rules providing for—
(a) the manner in which enquiries and proceedings may be held under this section;
(b) any other matter for which provision has to be made for enabling the High Court to effectively
exercise its jurisdiction under this section.]
2
[106A. Notice to and hearing of 3
[Authority].—(1) When application is made to the court for the
making of any order to which this section applies, the court shall, unless the 3
[Authority] has himself
made the application or has been made a party thereto, send a copy of the application together with
1. Subs. by Act 5 of 2015, s. 2(a), for “the Indian Companies Act, 1913” (w.e.f. 26-12-2014)
2. Ins. by Act 20 of 1940, s. 14 (w.e.f. 10-4-1940).
3. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for “Controller” (w.e.f. 19-4-2000).
91
intimation of the date fixed for the hearing thereof to the 2
[Authority], and shall give him an opportunity
of being heard.
(2) The orders to which this section applies are the following, namely: —
1* * * * *
2* * * * *
(c) an order under section 36 sanctioning any arrangement for the transfer or amalgamation of life
insurance business or any order consequential thereon;
(d) an order for the winding up of an insurance company 3***;
(e) an order under section 58 confirming a scheme for the partial winding up of an insurance
company;
4* * * * *
107. [Previous section of Advocate General for institution of proceedings.] —omitted by the
Insurance Laws (Amendment) Act, 2015 (5 of 2015) s. 92 (w.e.f. 26-12-2014).
107A. [Chairman, etc. to be public servant.] — omitted by s. 92, ibid. (w.e.f. 26-12-2014)
108. Power of court to grant relief. — If any proceedings, civil or criminal, it appears to the court
hearing the case that a person is or may be liable in respect of negligence, default, breach of duty or
breach of trust but that he has acted honestly and reasonably and that having regard to all the
circumstances of the case he ought fairly to be excused for the negligence, default, breach of duty or
breach of trust, the court may relievehim either wholly or partly from his liability on such terms as it may
think fit.
5
[109. Cognizance of offence. — No court shall take cognizance of any offence punishable under
this Act or any rules or any regulations made thereunder, save on a complaint made by an officer of the
Authority or by any person authorised by it.]
6
[110. Appeal to Securities Appellate Tribunal. — (1) Any person aggrieved—
(a) by an order of the Authority made on and after the commencement of the Insurance Laws
(Amendment) Act, 2015 (5 of 2015), or under this Act, the rules or regulations made thereunder; or
(b) by an order made by the Authority by way of adjudication under this Act,
may prefer an appeal to the Securities Appellate Tribunal having jurisdiction in the matter.
(2) Every appeal made under sub-section (1) shall be filed within a period of forty-five days from the
date on which a copy of the order made by the Authority is received by him and it shall be in such a form
and be accompanied by such fees as may be prescribed:
Provided that the Securities Appellate Tribunal may entertain an appeal after the expiry of the said
period of forty-five days if it is satisfied that there was sufficient cause for not filing it within that period.
1. Clause (a) omitted by Act 5 of 2015, s. 91 (w.e.f. 26-12-2014).
2. Clause (b) omitted by s. 91, ibid. (w.e.f. 26-12-2014).
3. The words “or a provident society” omitted by s. 91, ibid. (w.e.f. 26-12-2014).
4. Clause (f) omitted by s. 91, ibid. (w.e.f. 26-12-2014).
5. Subs. by s. 93, ibid., for section 109 (w.e.f. 26-12-2014).
6. Subs. by s. 94, ibid., for section 110 (w.e.f. 26-12-2014).
92
(3) On receipt of an appeal under sub-section (1), the Securities Appellate Tribunal may, after giving
parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, conforming,
modifying or setting aside the order appealed against.
(4) The Securities Appellate Tribunal shall make available copy of order made by it to the Authority
and parties.
(5) The appeal filed before the Securities Appellate Tribunal under sub-section (1) shall be dealt with
by it as expeditiously as possible and endeavour shall be made by it to dispose of the appeal finally within
six months from the date of receipt of appeal.
(6) The procedure for filing and disposing of an appeal shall be such as may be prescribed.
(7) The provision contained in section 15U, section 15V, section 15W, section 15Y and section
15Z of the Securities and Exchange Board of India Act, 1992 (15 of 1992) shall apply to the appeals
arising out of the provisions of this Act, as they apply to the appeals under the Securities and Exchange
Board of India Act, 1992 (15 of 1992).]
1
[110A. Delegation of powers and duties of 2
[Chairperson of the Authority]. — The 2
[Chairperson of
the Authority] may by general or special order delegate any of his powers or duties under this Act to any
person subordinate to him. The exercise or discharge of any of the powers or duties so delegated shall be
subject to such restrictions, limitations and conditions, if any, as the 2
[Chairperson of the Authority] may
impose, and shall be subject to his control and revision.
110B. Signature of documents. —Every document which is required by this Act or by any rule
made thereunder to be signed by the 2
[Chairperson of the Authority] or by any person subordinate to him
or by any officer authorised by him under sub-section (1) of section 42 shall be deemed to be properly
signed, if it bears a facsimile of the signature of such 2
[Chairperson of the Authority], person or officer
printed, engraved, lithographed or impressed by any other mechanical process approved by the Central
Government.]
3
[110C. Power to call for information. —(1) The 2
[Chairperson of the Authority] may, by notice in
writing, require any insurer to supply him with any information relating to his insurance business, and the
insurer shall comply with such requirement within such period after receipt of the notice as may be
specified therein.
(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.]
4
[110D. Certain claims for compensation barred. —No person shall have any right, whether in
contract or otherwise, to any compensation for any loss incurred by reason of the operation of any of the
provisions contained in section 34 or section 34A or section 34E or section 37A or by reason of the
compliance by an insurer with any order or direction given to hi m under this Act.
110E. [Sections 3A, 27B, 28B, 33, etc., to apply to general insurance business of the Life
Insurance Corporation of India.]— Omitted by the Insurance Laws (Amendment) Act, 2015 (5 of 2015)
s. 95 (w.e.f. 26-12-2014).
1. Ins. by Act 20 of 1940, s. 14 (w.e.f. 10-4-1940).
2. Subs. by Act 41 of 1999, s. 30 and the First Schedule (serial no. 43), for “Controller” (w.e.f. 19-4-2000).
3. Ins. by Act 47 of 1950, s. 59 (w.e.f. 1-6-1950).
4. Ins. by Act 62 of 1968, s. 37 (w.e.f. 1-6-1969).
93
110F. Provisions applicable to State Governments, etc.—The provisions of
sections 3, 3A, 27B, 28B, 33, 34 clause (a) of sections 34E, 34F, 40C, 44A, 64U to 64UM (both
inclusive), 64V, 64VA, 64VB, 64VC, and 101A, 101C, 110D, 110G and 110H shall notwithstanding any
exemption granted under section 118, also apply, so far as may be, to and in relation to the general
insurance business carried on by a State Government or a Government company as defined in section
617 of 1
[the Companies Act, 2013 (18 of 2013)].
110G. [Provisions applicable to State Governments. etc.] — Omitted by the Insurance Laws
(Amendment) Act, 2015 (5 of 2015) s. 96 (w.e.f. 26-12-2014).
110H. [Appeals.] — Omitted by the Insurance Laws (Amendment) Act, 2015 (5 of 2015) s. 95 (w.e.f.
26-12-2014).
2
[110HA. Penalty to be recoverable as arrear of land revenue. — Any penalty imposed by the
Authority under this Act shall be recoverable as an arrear of land revenue.]
111. Service of notices. —(1) Any process or notice required to be served on an insurer 3*** shall be
sufficiently served if addressed to any person registered with the 4
[Authority] as a person authorised to
accept notices on behalf of the insurer 3*** and left at, or sent by registered post to the address of such
person as registered with the 4
[Authority].
(2) Any notice or other document which is by this Act required to be sent to any policy-holder may be
addressed and sent to the person to whom notices respecting such policy are usually sent and any notice
so addressed and sent shall be deemed to be notice to the holder of such policy:
Provided, that, where any person claiming to be interested in a policy as transferee, assignee or
nominee has given to an insurer 5*** notice in writing of his interest, any notice which is by this Act
required to be sent to policy-holders shall also be sent to such person at the address specified by him
in his notice.
112. Declaration of interim bonuses. —Notwithstanding anything to the contrary contained in this
Act, an insurer carrying on the business of life insurance shall be at liberty to declare an interim bonus or
bonuses to policy-holders whose policies mature for payment by reason of death or otherwise during the
intervaluation period on the recommendation of the investigating of actuary made at the last preceding
valuation.
6
[113. Acquisition of surrender value by policy. —(1) A policy of life insurance shall acquire
surrender value as per the norms specified by the regulations.
(2) Every policy of life insurance shall contain the formula as approved by the Authority for
calculation of guaranteed surrender value of the policy.
(3) Notwithstanding any contract to the contrary, a policy of life insurance under a non-linked plan
which has acquired a surrender value shall not lapse by reason of non-payment of further premiums but
shall be kept in force to the extent of paid-up sum insured, calculated by means of a formula as approved
by the Authority and contained in the policy and the reversionary bonuses that have already been attached
to the policy:
Provided that a policy of life insurance under a linked plan shall be kept in force in the manner as
may be specified by the regulations.
1. Subs. by Act 5 of 2015, s. 2(b), for “the Companies Act, 1956” (w.e.f. 26-12-2014).
2. Ins. by s. 97, ibid. (w.e.f. 26-12-2014).
3. The words “or provident society” omitted by s. 98, ibid. (w.e.f. 26-12-2014).
4. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for “Controller” (w.e.f. 19-4-2000).
5. The words “or to a provident society” omitted by Act 5 of 2015, s. 98 (w.e.f. 26-12-2014).
6. Subs. by s. 99, ibid., for section 113 (w.e.f. 26-12-2014).
94
(4) The provisions of sub-section (3) shall not apply—
(i) where the paid-up sum insured by a policy, inclusive of attached bonuses, is less than the
amount specified by the Authority or takes the form of annuity of amount less than the amount
specified by the Authority; or
(ii) when the parties, after the default has occurred in payment of the premium, agree in writing to
other arrangement.]
114. Power of Central Government to make rules. —(1) The Central Government may, subject to
the condition of previous publication by notification in the Official Gazette, make rules to carry out the
purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such rules may
prescribe—
1* * * * *
2* * * * *
3
[(aaa) the conditions and manner of foreign investment under sub-clause (b) of clause (7A) of
section 2;]
4
[(b) the manner in which it shall be determined which of the transactions of an insurer are to be
deemed for the purposes of this Act to be insurance business transacted 5*** in
6
[India]
7***;]
8* * * * *
(d) the form referred to in clause (d) of sub-section (2) of section 16;
(e) the manner in which the prospectuses and tables referred to in sub-section (1) of
section 41 shall be published and the form in which they shall be drawn up;
9* * * * *
10* * * * *
(h) the contingencies other than those specified in clauses (a) to (f) of 11[sub-section (2) of]
section 65 on the happening of which money may be paid by provident societies;
(i) the matters other than those specified in clauses (a) to (o) of sub-section (1) of section 74 on
which a provident society shall make rules;
1. Clause (a) omitted by Act 42 of 2002, s. 16 (w.e.f. 23-9-2002).
2. Clause (aa) omitted by Act 5 of 2015, s. 100 (w.e.f. 26-12-2014).
3. Subs. by Act 6 of 2021, s. 4, for clause (aaa) (w.e.f. 1-4-2021).
4. Subs. by Act 13 of 1941, s. 62, for clause (b) (w.e.f. 8-4-1941).
5. The words “in India or” omitted by Act 62 of 1956, s. 2 and the Schedule (w.e.f. 1-11-1956).
6. Subs. by s. 2 and the Schedule, ibid., for “the States” (w.e.f. 1-11-1956)
7. The words “as the case may be” omitted by Act s. 2 and the Schedule, ibid., (w.e.f. 1-11-1956).
8. Clause (c) omitted by Act 5 of 2015, s. 100 (w.e.f. 26-12-2014).
9. Clause (f) omitted by s. 100, ibid. (w.e.f. 26-12-2014).
10. Clause (g) omitted by Act 41 of 1999, s. 30 and the First Schedule (w.e.f. 19-4-2000).
11. Ins. by Act 20 of 1940, s. 16 (w.e.f. 10-4-1940).
95
(j) the form of any account, return or registered required by the Part III and the manner in which
such account, return or register shall be verified;
(k) subject to the provisions of this Act, the fees payable thereunder and the manner in which they
are to be collected; 1***.
(l) the conditions and the matters which may be prescribed under sub-sections (5), 2
[(6)], (10) and
(12) of section 92;
3
[(la) the manner of inquiry under sub-section (l) of section 105C;
(lb) the form in which an appeal may be preferred under sub-section (2) and the fee payable in
respect of such appeal and the procedure for filing and disposing of an appeal under sub-section (6) of
section 110;]
4* * * * *
5
[(m) any other matter which is to be or may be prescribed.]
6* * * * *
7
[(3) Every rule made under this section or under sub-section (10) of section 34H 8*** and every
regulation made under this Part shall 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
regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall
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 shall be without prejudice to the validity of anything previously done
under that rule or regulation.]
9
[(4)] All rules made by a Local Government under the provisions of section 24 of the Provident
Insurance Societies Act, 1912 (5 of 1912) and in force at the commencement of this Act shall so far as not
inconsistent with the provisions of Part III continue in force and have effect as if duly made under this
section until they are replaced by rules made under this section.
10[114A. Power of Authority to make regulations.—(1) The Authority may, by notification in the
Official Gazette, make regulations consistent with this Act and the rules made thereunder, to carry out the
purposes of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may
provide for all or any of the following matters, namely: —
11[(a) manner of making application for registration and documents to be accompanied under
sub-section (2) of section 3;]
1. The word “and” omitted by Act 20 of 1940, s. 16 (w.e.f. 10-4-1940).
2. Ins. by Act 11 of 1939, s. 32.
3. Ins. by Act 5 of 2015, s. 100 (w.e.f. 26-12-2014).
4. Clause (ll) omitted by Act 41 of 1999, s. 30 and the First Schedule (w.e.f. 19-4-2000).
5. Ins. by Act 20 of 1940, s. 16 (w.e.f. 10-4-1940).
6. The proviso omitted by ibid, s. 16 (w.e.f. 10-4-1940).
7. Subs. by Act 20 of 1983, s. 2 and the Schedule, for sub-section (3) (w.e.f. 15-3-1984).
8. The words, brackets, figures and letters “or under sub-section (1) of section 64UB and every regulation made under
sub-section (3) of section 64UB” omitted by Act 5 of 2015, s. 100 (w.e.f. 26-12-2014).
9. Sub-section (3) re-numbered as sub-section (4) thereof by Act 20 of 1940, s. 16 (w.e.f. 10-4-1940).
10. Ins. by Act 41 of 1999, s. 30 and the First Schedule (w.e.f. 19-4-2000).
11. Subs. by Act 5 of 2015, s. 101, for clauses (a) and (aa) (w.e.f. 26-12-2014).
96
(b) the manner of suspension or cancellation of registration under sub-section (5E) of section 3;
(c) such fee, not exceeding five thousand rupees, as may be determined by the regulations for
issue of a duplicate certificate of registration under subsection (7) of section 3;
1
[(d) such annual fee to the Authority and manner of payment under sub-section (1) of section
3A;]
2
[(da) such minimum annuity and other benefits to be secured by the insurer under section 4;
(daa) determination of preliminary expenses that may be excluded for calculation of the
stipulated paid-up equity capital for the insurers under sub-section (1) of section 6;
(db) such equity capital and such forms of capital including hybrid capital required under
sub-section (I) of section 6A;]
3* * * * *
2
[(ea) separation of account of all receipts and payments in respect of each classes and
sub-classes of insurance business as required under sub-section (1) and sub-section (2AA) of section
10; and its waiver under the said section;]
(f) the preparation of balance-sheet, profit and loss account and a separate account of receipts and
payments and revenue account 4
[under sub-section (1) of section 11];
5
[(g) the manner in which an abstract of the report of the actuary to be specified and the form and
manner in which the statement referred to in section 13 shall be appended;]
2
[(ga) maintenance of records of policies and claims under clause (c) of sub-section (1) of
section 14;
(gb) manner and form of issuance of policies in electronic form under sub-section (2) of
section 14;]
6
[(h) the fee for procuring a copy of return or any part thereof under sub-section (I) of
section 20;]
7
[(i) investment of assets and further provisions regarding investments by an insurer and
investment by insurers in certain cases under sections 27, 27A, 27B, 27C and time, manner and other
conditions of investment of assets under section 27D;]
8
[(ia) the form in which a return giving details of investments made, time and manner including
its authentication under section 28;
(ib) the loans including the loans sanctioned to the full-time employees of the insurer under
clause (a) of sub-section (3) of section 29;
(ic) the sum to be paid by the insurer to any person under section 31B;
1. Subs. by Act 5 of 2015, s. 101, for clause (d) (w.e.f. 26-12-2014).
2. Ins. by s. 101, ibid. (w.e.f. 26-12-2014).
3. Clause (e) omitted by s. 101, ibid. (w.e.f. 26-12-2014).
4. Subs. by s. 101, ibid., for “under sub-section (1A) of section 11” (w.e.f. 26-12-2014).
5. Subs. by s. 101, ibid., for clause (g) (w.e.f. 26-12-2014).
6. Subs. by s. 101, ibid., for clause (h) (w.e.f. 26-12-2014).
7. Subs. by s. 101, ibid., clause (i) (w.e.f. 26-12-2014).
8. Subs. by s. 101, ibid., for clauses (ia), (ib), (ic), (id) and (ie) (w.e.f. 26-12-2014).
97
(id) the obligation of insurer in respect of rural or social or unorganised sector and backward
classes under sections 32B and 32C;
(ie) the minimum percentage of insurance business in third party risks of motor vehicles under
section 32D;]
1
[(j) the minimum information to be maintained by insurers or intermediary or insurance
intermediary, as the case may be, in their books, the manner in which such information shall be
maintained, the checks and other verifications in that connection and all other matters incidental
thereto under sub-section (7) of section 33;]
2
[(ja) the form in which balance-sheets in respect of the insurance business of each of the insurers
concerned and the manner in which actuarial reports and abstracts in respect of the life insurance
business are to be prepared under clauses (b) and (c) of sub-section (3) of section 35;
(jb) the manner of assessment of compensation under the proviso to sub-section (4A) of
section 37A;
(jc) the fee to be charged by the insurer under sub-section (3) of section 39;
(jd) the manner and amount of remuneration or reward to be paid or received by way of
commission or otherwise to an insurance agent or an intermediary or insurance intermediary under
section 40;
(je) the manner and form of expenses of management under sections 40B and 40C;]
3* * * * *
4* * * * *
5
[(m) the requisite qualifications or practical training or examination to be passed for appointment
as an insurance agent under clause (e) of sub-section (3) of section 42;]
6* * * * *
7
[(o) the code of conduct under clause (h) of sub-section (3) of section 42;]
8* * * * *]
(q) the manner and the fees for issue of a licence to an intermediary or an insurance intermediary
under sub-section (1) of section 42D;
(r) the fee and the additional fee to be determined for renewal of licence of intermediaries or
insurance intermediaries under sub-section (3) of section 42D;
(s) the requisite qualifications and practical training of intermediaries or insurance intermediaries
under clause (e) of sub-section (5) of section 42D;
(t) the examination to be passed to act as an intermediary or insurance intermediary under
clause (f) of sub-section (5) of section 42D;
1. Subs. by Act 5 of 2015, s. 101, for clause (j) (w.e.f. 26-12-2014).
2. Ins. by s. 101, ibid. (w.e.f. 26-12-2014).
3. Clause (k) omitted by s. 101, ibid. (w.e.f. 26-12-2014).
4. Clause (l) omitted by s. 101, ibid. (w.e.f. 26-12-2014).
5. Subs. by s. 101, ibid., for clause (m) (w.e.f. 26-12-2014).
6. Clause (n) omitted by s. 101, ibid. (w.e.f. 26-12-2014).
7. Subs. by s. 101, ibid., for clause (o) (w.e.f. 26-12-2014).
8. Clause (p) omitted by s. 101, ibid. (w.e.f. 26-12-2014).
98
(u) the code of conduct under clause (g) of sub-section (5) of section 42D;
(v) the fee for issue of duplicate licence under sub-section (7) of section 42D;
1
[
2* * * * *
(vb) the requirements of capital, form of business and other conditions to act as an intermediary
or insurance intermediary under 3*** section 42E;
(vc) the form of balance-sheet, as may be specified by the Authority under sub-section (1) of
section 49;]
4* * * * *
5
[(x) academic qualifications and code of conduct for surveyors and loss assessors under
sub-sections (1) and (2) of section 64UM;
(xa) the period for which a person may act as a surveyor or loss assessor under sub-section (3) of
section 64UM;]
6
[(y) the manner of exclusion of certain assets under sub-section (1), the manner of valuation of
liabilities under sub-section (2) and time for furnishing statement under sub-section (3) of section
64V;]
(z) the valuation of assets and liabilities under sub-section (3) of section 64V;
7
[(za) the matters specified under sub-section (1) of section 64VA relating to sufficiency of
assets;]
(zaa) the manner of receipt of premium to be specified under sub-section (6) of section 64VB;]
8
[(zab) the form, time, manner including authentication of the return giving details of solvency
margin under sub-section (9) of section 64VA;
(zac) the manner of opening and closing places of business under section 64VC;]
(zb) the matters relating to re-insurance under sections 101A and 101B;
9
[(zba) the norms for surrender value of life insurance policy under sub-section (1) of
section 113;]
(zc) the matters relating to redressal of grievances of policy-holders to protect their interest and to
regulate, promote and ensure orderly growth of insurance industry; and
(zd) any other matter which is to be, or may be, specified by the regulations made by the
Authority or in respect of which provision is to be made or may be made by the regulations.
1. Ins. by Act 42 of 2002, s. 17 (w.e.f. 23-9-2002).
2. Clause (va) omitted by Act 5 of 2015, s. 101 (w.e.f. 26-12-2014).
3. The words, brackets and figure “sub-section (2) of” omitted by s. 101, ibid. (w.e.f. 26-12-2014).
4. Clause (w) omitted by s. 101, ibid. (w.e.f. 26-12-2014).
5. Subs. by s. 101, ibid., for clause (x) (w.e.f. 26-12-2014).
6. Subs. by s. 101, ibid., for clause (y) (w.e.f. 26-12-2014).
7. Subs. by s. 101, ibid., for clause (za) (w.e.f. 26-12-2014).
8. Ins. by s. 101, ibid. (w.e.f. 26-12-2014).
9. Ins. by s. 101, ibid. (w.e.f. 26-12-2014).
99
(3) Every regulation made under this Act shall 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 regulation or both Houses agree that the regulation should not be made, the regulation shall
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 shall be without prejudice to the validity of anything previously done
under that regulation.]
115. Alteration of forms.—The 1
[Authority] may, on the application or with the consent of an
insurer, not being a company, alter the forms contained in the Schedules as respect that insurer, for the
purpose of adapting them to the circumstances of that insurer:
Provided that nothing done under this section shall exempt the insurer from supplying all information
required under this Act so far as it is possible for the insurer to do so.
116. Power to exempt from certain requirements—2
[(1)] The Central Government may, by
notification in the Official Gazette, exempt any insurer constituted, incorporated or domiciled in 3
[any
country or State outside 4
[India]] 5
[from any of the provisions of this Act which may be specified in the
notification] either absolutely or subject to such conditions or modification as may be specified in the
notification.
6* * * * *
7
[(2) This section shall apply in respect of provident societies as defined in Part III as it applies in
respect of insurers.]
8
[116A. Summary of returns to be published—The 9
[Central Government, before the date of
commencement of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999)] shall
every year cause to be published, in such manner as it may direct, a summary of the accounts, balancesheet, statements, abstracts and other returns under this Act or purporting to be under this Act which have
been furnished in pursuance of the provisions of this Act to the 1
[Authority] during the year preceding the
year of publication, and may append to such summary any note of the 1
[Authority] or of the 9
[Central
Government, before the date of commencement of the Insurance Regulatory and Development Authority
Act, 1999,] and any correspondence:
Provided that nothing in this section shall require the publication of the 10[statement referred to in
sub-section (2) of section 10 of the returns] referred to in sub-section (1) of section 28 11[or 12[section 28A
or section 28B] or the statements referred to in sub-section (2) of section 31B or section 40B.]]
117. Saving of provisions of 13[the Companies Act, 2013]—Nothing in this Act shall affect the
liability of an insurer being a company 14[or a provident society as defined in Part III being a company] to
1. Subs. by Act 41 of 1999, s. 30 and the First Schedule, “Central Government” (w.e.f. 19-4-2000).
2. Section 116 renumbered as sub-section (1) thereof by Act 13 of 1941, s. 63 (w.e.f. 8-4-1941).
3. Subs. by Act 47 of 1950, s. 60, for “a Part B State” (w.e.f. 1-6-1950).
4. Subs. by Act 62 of 1956, s. 2 and the Schedule, for “the States” (w.e.f. 1-11-1956).
5. Subs. by Act 20 of 1940, s. 17, for certain words (w.e.f. 10-4-1940).
6. The proviso omitted by Act 47 of 1950, s. 60 (w.e.f. 1-6-1950)
7. Added by Act 13 of 1941, s. 63 (w.e.f. 8-4-1941).
8. Ins. by s. 64, ibid. (w.e.f. 8-4-1941).
9. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for “Central Government” (w.e.f. 19-4-2000).
10. Subs. by Act 6 of 1946, s. 47, for “statements” (w.e.f. 20-3-1946).
11. Ins. by Act 47 of 1950, s. 61 (w.e.f. 1-9-1950).
12. Subs. by Act 62 of 1968, s. 38, for “section 28A” (w.e.f. 1-6-1969).
13. Subs. by Act 5 of 2015, s. 2(a), for “Indian Companies Act, 1913” (w.e.f. 26-12-2014).
14. Ins. by Act 13 of 1941, s. 65 (w.e.f. 8-4-1941).
100
comply with the provisions of 1
[the Companies Act, 2013 (18 of 2013)], in matters not otherwise
specifically provided for by this Act.
2
[118. Exemptions—Nothing in this Act shall apply—
(a) to any trade union registered under the Indian Trade Unions Act, 1926 (16 of 1926); or
(b) to any provident fund to which the provisions of the Provident Funds Act, 1925 (19 of 1925),
apply; or
(c) if the Central Government so orders in any case, and to such extent or subject to such
conditions or modifications as may be specified in the order, to any insurance business carried on by
the Central Government or a State Government or a Government company as defined in Section
617 of 3
[the Companies Act, 2013 (18 of 2013)]; or
(d) if the 4
[Authority] so orders in any case, and to such extent or subject to such conditions or
modifications as may be specified in the order, to—
(i) any approved superannuation fund as defined in clause (a) of section 58N of the Indian
Income Tax Act, 1922 (11 of 1922); or
(ii) any fund in existence and officially recognised by the Central Government before
the 27th day of January, 1937, maintained by or on behalf of Government Servants or
Government pensioners for the mutual benefit of contributors to the fund and of their dependants;
or
(iii) any mutual or provident insurance society composed wholly of Government servants or
of railway servants which has been exempted from any or all of the provisions of the Provident
Insurance Societies Act, 1912 (5 of 1912). ]
5
[or
(iv) any fund in existence in the Union territory of Goa, Daman and Diu on the 20th
December, 1961 and maintained by or on behalf of Government servants or Government
pensioners or on behalf of employees of any autonomous body and intended for the mutual
benefit of contributors to the fund or for any other purpose.]
6
[118A. Powers of Authority not to apply to International Financial Services Centre.—
Notwithstanding anything contained in any other law for the time being in force, the powers exercisable
by the Authority under this Act,—
(a) shall not extend to an International Financial Services Centre set up under sub-section (1) of
section 18 of the Special Economic Zones Act, 2005 (28 of 2005);
(b) shall be exercisable by the International Financial Services Centres Authority established
under sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019,
in so far as regulation of financial products, financial services and financial institutions that are permitted
in the International Financial Services Centres are concerned.]
7
[119. Inspection and supply of copies of published prospectus, etc.—Any person may on payment
of a fee of five rupees inspect the documents filed by an insurer with the 4
[Authority] under clause (f) of
1. Subs. by Act 5 of 2015, s. 2(a), for “Indian Companies Act, 1913” (w.e.f. 26-12-2014).
2. Subs. by Act 35 of 1957, s. 5, for section 118 (w.e.f. 1-9-1957).
3. Subs. by Act 5 of 2015, s. 2(b), for “the Companies Act, 1956” (w.e.f. 26-12-2014).
4. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for “Controller” (w.e.f. 19-4-2000).
5. Added by Goa, Daman and Diu (Laws) Regulation (12 of 1962), s. 2 and the Schedule (w.e.f. 12-11-1962).
6. Ins. by Act 50 of 2019, s. 33 and the Second Schedule (w.e.f. 1-10-2020).
7. Subs. by Act 13 of 1941, s. 67, for section 119 (w.e.f. 8-4-1941).
101
sub-section (2) of section 3, and may obtain a copy of any such document or part thereof on payment
in advance at the prescribed rate for the making of the copy.]
120. Determination of market value of securities deposited under this Act.—The market value on
the day of deposit of securities deposited in pursuance of any of the provisions of this Act with the
Reserve Bank of India shall be determined by the Reserve Bank of India whose decision shall be final.
121. [Amendment of section 130, Act IV of 1882.] —Rep. by the Repealing and Amending Act, 1957
(36 of 1957), s. 2 and the First Schedule (w.e.f. 17-9-1957).
122. [Amendment of Schedule I. Act 9 of 1908.] —Rep. by s. 2 and the First Schedule ibid, (w.e.f.
17-9-1957).
123. [Repeals.] — Rep. by s. 2 and the First Schedule ibid, (w.e.f. 17-9-1957).
THE FIRST SCHEDULE—REGULATIONS AND FORMS FOR THE PREPARATION OF
BALANCE-SHEET- Omitted by the Insurance (Amendment) Act, 2002 (42 of 2002), s. 18
(w.e.f. 23-9-2002).
THE SECOND SCHEDULE—REGULATIONS AND FORMS FOR THE PREPARATION OF PROFIT AND LOSS
ACCONTS- Omitted by s. 18, ibid. (w.e.f. 23-9-2002).
THE THIRD SCHEDULE—REGULATIONS AND FORMS FOR THE PREPARATION OF REVENUE
ACCOUNTS - Omitted by s. 18, ibid. (w.e.f. 23-9-2002).
THE FORTH SCHEDULE—REGULATIONS FOR THE PREPARATION OF ABSTRACTS OF ACTUARIES -
REPORTS AND REQUIREMENTS APPLIACABLE TO SUCH ABSTRACTS—Omitted by s. 18, ibid.
(w.e.f. 23-9-2002).
THE FIFTH SCHEDULE—REGULATIONS FOR PREPARING STATEMENTS OF BUSINESS IN FORCE AND
REQUIRMENTS APPLICABLE TO SUCH STATEMENTS - Omitted by the Insurance Laws (Amendment)
Act, 2015 (5 of 2015), s. 102 (w.e.f. 26-12-2014).
THE SIXTH SCHEDULE-TERMS DEEMED TO BE INCLUDED IN EVERY CONTRACT BETWEEN AN
INSURER CARRYING ON GENERAL INSURANCE BUSINESS AND A PRINCIPAL AGENT-Omitted by s. 102,
ibid. (w.e.f. 26-12-2014).