REGISTERED No. D. 221 रोजस्ट्री सं० डी. 221
जयते भारत का राजपत्र The Gazette of India
असाधारण
EXTRAORDINARY
भाग II-खण्ड-2
PART II-Section 2
प्राधिकार से प्रकाशित
PUBLISHED BY AUTHORITY
सं 8 ] नई दिल्ली , मंगलवार , मार्च 2 , 1965 / फाल्गुना 11 , 1886
No. 8 ] NEW DELHI , TUESDAY , MARCH 2 , 1965 / PHALGUNA 11 , 1886
इस भाग में भिन्न पृष्ठ संख्या दी जाती है जिससे कि यह अलग संकलन के रूप में रखा जा सके Separate paging is given to this Part in order that it may be filed as a separate compilation
LOK SABНА
The following Bill was introduced in Lok Sabha on the 2nd March, 1965-
BILL NO . 7 OF 1965
A Bill further to amend the Insurance Act , 1938 .
Be it enacted by Parliament in the Sixteenth Year of the Republic of India as follows: -
1. This Act may be called the Insurance (Amendment) Act, 1965. Short
title.
2. In section 8 of the Insurance Act , 1938 (hereinafter referred Amend 5 to as the principal Act) ,
ment of section 3.
(i) after sub -section (2) , the following sub - sections shall'e inserted , namely:-
" (2A) If, on receipt of an application for regis after making such inquiry as he deems fit , the [PART II 228
THE GAZETTE OF INDIA EXTRAORDINARY
(a) the financial condition and the general character of management of the applicant are sound ;
(b ) the volume of business likely to be available to , and the capital structure and earning prospects of , the applicant will be adequate; 5
(c) the interests of the general public will be serv- ed if the certificate of registration is granted to the ap- plicant in respect of the class or classes of insurance business specified in the application ; and
(d) the applicant has complied with the provisions 10 of sections 2C , 5 , 31A and 32 and has fulfilled all the requirements of this section applicable to him,
the Controller may register the applicant as an insurer and grant him a certificate of registration.
(2B) Where the Controller refuses registration , he shall 15 record the reasons for such decision and shall furnish a copy thereofto the applicant .
20 (2C) Any person aggrieved by the decision of the Con- troller refusing registration may, within thirty davs from the date on which a cony of the decision is received by him , appeal to the Central Government .
(2D) The decision of the Central Government on such appeal shall be final and shall not be questioned before any court.";
25 (ii) in sub -section ( 3 ) , for the words " In the case of any insurer having his principal place of business or domicile out- side India ", the following shall be substituted , namely :-
"Notwithstanding anything contained in sub -section (2A) , in the case of any insurer having his principal place of business or domicile outside India" ;
30
(iii) sub -section (6) shall be omitted .
Amendment of section
110 .
3. In section 110 of the principal Act , in clause (a) of sub -section (1) , the words " refusing to register , or " shall be omitted.
THE GAZETTE OF INDIA EXTRAORDINARY
SEC . 2 ]
229
STATEMENT OF OBJECTS AND REASONS
In terms of sub - section ( 6 ) of section 3 of the Insurance Act , 1938 , it is mandatory on the part of the Controller of Insurance to grant a certificate of registration to an applicant if the requirements as to registration under the Act are complied with. It is not, how- ever , a requirement that the Controller should satisfy himself about the financial condition and the general character of management of the applicant so that the interests of the policy holders are adequate- ly safeguarded. The Government consider that such a requirement is necessary and that the entry of new insurers should be related to the volurne of business available so that uneconomic units which may act as a drag on the insurance industry are not allowed to grow. The Bill is intended mainly to give effect to these objects .
T. T. KRISHNAMACHARI.
NEW DELHI ;
The 19th February , 1965 .
S. L. SHAKDHER ,
Secretary.
PRINTED IN INDIA BY THE GENERAL MANAGER , GOVERNMENT OF INDIA PRESS, MINTO ROAD , NEW DELHI , 1965. PUBLISHED BY THE MANAGER OF PUBLICATIONS.
Εx.-8-3-65 2801,
DELHI- LS I-917 G. or I.