Skip to main content

The General Insurance Business (Nationalisation) Act, 1972

Central

An Act to provide for the acquisition and transfer of shares of Indian insurance companies and undertakings of other existing insurers in order to serve better the needs of the economy by securing the development of general insurance business in the best interests of the community and to ensure that the operation of the economic system does not result in the concentration of wealth to the common detriment, for the regulation and control of such business and for matters connected therewith or incidental thereto.

Act number
57 of 1972
Ministry
Ministry of Finance
Department
Department of Financial Services
Enacted
20 Sep 1972

Source: IndiaCode Portal, Legislative Department, Ministry of Law and Justice, Government of India. Open on India Code Check against the official text before relying on it.

49 sections

  1. Section 1Short title.
  2. Section 2Declaration as to the policy of the State.
  3. Section 3Definitions.
  4. Section 4Transfer of shares of Indian insurance companies.
  5. Section 5Transfer of undertakings of other existing insurers.
  6. Section 6Effect of transfer of undertakings.
  7. Section 7Transfer of service of existing employees in certain cases.
  8. Section 8Provident, superannuation, welfare and other funds.
  9. Section 9Formation of General Insurance Corporation of India.
  10. Section 10Transfer to Corporation of shares vested in Central Government.
  11. Section 10ATransfer to Central Government of shares vested in Corporation.
  12. Section 10BEnhancement of equity capital of General Insurance companies.
  13. Section 11Amounts to be paid for transfer and vesting of shares or undertakings.
  14. Section 12Disbursement of amounts by Corporation.
  15. Section 13Mode of payment.
  16. Section 14Amount payable to shareholders may be paid to named persons instead in certain cases.
  17. Section 15Payment into court in case of rival claims.
  18. Section 16Schemes for mergers of companies, etc.
  19. Section 17Laying of schemes and notifications before Parliament.
  20. Section 17APower of Central Government to regulate the terms and conditions of service of officers and other employees.
  21. Section 18Functions of Corporation.
  22. Section 19Functions of acquiring companies.
  23. Section 20Balance of profit how to be utilised.
  24. Section 21Interim provisions for management of Indian insurance companies.
  25. Section 22Power of Central Government to transfer employees.
  26. Section 23Power of Central Government to issue directions.
  27. Section 24Acquiring companies to have the exclusive privilege of carrying on general insurance business.
  28. Section 24AExclusive privilege of Corporation and acquiring companies to cease.
  29. Section 24BCessation of application of Act.
  30. Section 25Omitted.
  31. Section 26Acquiring companies and income-tax.
  32. Section 27Power to reduce amounts of insurance in certain eases
  33. Section 28Right of acquiring company to seek relief in respect of certain transactions.
  34. Section 29Duty to deliver possession of property and documents relating thereto.
  35. Section 30Penalty for withholding property, etc.
  36. Section 31Officers and employees of Corporation or of acquiring companies to be public servants.
  37. Section 31ALiability of director of specified insurer.
  38. Section 32Indemnity
  39. Section 33Dissolution of Corporation and acquiring companies
  40. Section 34Reference to existing insurer in other laws
  41. Section 35Application of Insurance Act.
  42. Section 35AOmitted.
  43. Section 36Exemptions
  44. Section 37Vacancies, etc., not to invalidate proceedings.
  45. Section 38Protection of action taken in good faith.
  46. Section 38APowers of Insurance Regulatory and Development Authority of India not to apply to International Financial Services Centre.
  47. Section 39Power to make rules.
  48. Section 40Repealed.
  49. Section 30AAdjudication of penalties.