In these rules,

(i) the Act means the Insurance Act, 1938 (4 of 1938);

(ii) the Bank means the Reserve Bank of India;

2[(iii) Bombay area means the area comprising the States of Maharashtra, Gujarat and Madhya Pradesh] 3[and the Union Territory of Goa, Daman and Diu, and Dadra and Nagar Haveli;]

4[(iv) Calcutta area means the area comprising the States of Assam, Bihar, Manipur, Meghalaya, Orissa, West Bengal, Sikkim and Tripura and the Tuensang district in the State of Nagaland and the Union Territories of Arunachal Pradesh, Mizoram and Andaman and Nicobar Islands;

(v) Delhi area means the area comprising the States of Jammu and Kashmir, Haryana, Himachal Pradesh, Punjab, Rajasthan and Uttar Pradesh and the Union Territories of Delhi and Chandigarh;

(vi) Madras area means the area comprising the States of Andhra Pradesh, Karnataka, Kerala and Tamil Nadu and the Union Territories of Pondicherry and Lakshadweep; and]

(vii) words used but not defined in these rules have the meanings respectively assigned to them in the Act.

Any person signing as actuary under the Act shall be a Fellow of the Institute of Actuaries, London, or a Fellow of the Faculty of Actuaries in Scotland 5[or a Fellow of the Actuarial Society of India]:

Provided that where application is made to the Controller of Insurance and it is shown to his satisfaction that the employment of an Associate of such Institute of Actuaries or of such Faculty of Actuaries, 6[or of such Actuarial Society] or of any other person having actuarial knowledge for any specified purpose is expedient in order to enable an insurer or a provident society to carry out any of his or its obligations under the Act, the Controller of Insurance may grant the application and permit such person to sign as actuary for the specified purpose, subject to such conditions and restrictions as the Controller of Insurance thinks fit to impose.

4. [* * *]

(1) Deposits made in pursuance of the Act shall be held by that office of the Bank (hereinafter referred to as the appropriate Indian office) in whose area of administration the principal office in the States of the depositor is situated:

Provided that deposits in sterling securities shall be held by the London office of the Bank on behalf of the appropriate Indian office.

(2) Deposits in sterling securities shall be sent by the depositor with a covering letter to the Manager of the London office of the Bank, and shall not be brought on the books of the appropriate Indian office until the receipt of an intimation in Form I from the London office.

(3) Deposits, other than deposits in sterling securities, shall be sent by the depositor with a covering letter to the Manager of the appropriate Indian office of the Bank.

(4) Securities shall be duly transferred to the Bank of the depositor.

(5) Upon receipt of the intimation referred to in sub-rule (2) or of a deposit under sub-rule (3) the appropriate Indian office of the Bank shall send

(a) a certificate in Form II to the depositor; and

(b) a statement in Form III to the Controller of Insurance:

Provided that, if the Bank is not satisfied as to the validity of the title of the depositor to the securities, it may return them to him with the request that they shall first be renewed or that such other measures as may be necessary shall be taken to clear the title.

(6) The market value of sterling securities held by the Bank shall be converted at Is. 6d. to the rupee.

When the form or amount of a deposit is changed by reason of a subsequent deposit, a substitution or a payment under sub-section (9) or sub-section (10) of Section 7 of the Act or a sale or investment under sub-section (9-A) of the said section, the Bank shall, within two weeks from the entry of such change in the books of the Bank, send a fresh certificate and a fresh statement of the nature, and in the manner described in clauses (a) and (b) of sub-rule (5) of Rule 5.

When a security in deposit matures, or when any yield on such security ceases to accrue, the Bank shall not be bound to inform the depositor; but, upon receipt of a requisition from the depositor made in writing and in accordance with the provision of the Act, the Bank shall, within six weeks of such a receipt, collect the discharge value and hold the amount in cash to the credit of the depositor or invest it in securities specified by the depositor.

(1) No interest shall be paid on cash deposits.

(2) Interest or dividends on sterling securities shall, at the option of the depositor, be either paid in London by the London office of the Bank after deduction of a commission of 5s. on every sum of 100 or part thereof, or remitted by the London office of the Bank to the appropriate Indian office of the Bank at the Telegraphic Transfer Rate on India prevailing on the date of realisation of the interest or dividends.

(3) The appropriate Indian office of the Bank shall remit interest or dividends or securities other than sterling securities, and amounts if any received from the London office of the Bank under sub-rule (2) without delay to the depositor at an office in India to be specified by the depositor,

(a) if the office so specified is at a place where there is an office of the Bank or a branch of the Imperial Bank of India, by means of a Government draft, and

(b) in other cases, by a Security Deposit Interest Payment Draft on the nearest Government Treasury,

after deduction of a commission of annas four on every sum of Rs 100 or part thereof.

(1) Withdrawals and payments from deposits and purchases of securities shall not be made save in accordance with the provisions of the Act and on receipt by the Bank of a requisition in writing and in accordance with the provisions of the Act from the depositor, a liquidator acting in accordance with law or a court of competent jurisdiction, as the case may be.

(2) The Bank shall not be bound, in pursuance of sub-rule (1), to return securities actually deposited, but may substitute therefor new scrip of securities of the same description and amount.

(3) The Bank shall be entitled to charge, for the purchase of sale of securities, any brokerage payable by the Bank in respect of such purchase or sale.

The Controller of Insurance shall be entitled, free of any fee to inspect or to require from the Bank any information relating to any security deposited with the Bank under the Act.

(2) The Bank shall, if so required, furnish the Controller of Insurance, or any person authorised by him in that behalf in writing with a copy of any entry in any register or book maintained by the Bank relating to any deposit made with the Bank under the Act.

(3) The Bank shall publish as soon as may be after the 1st January in each year in such manner as the Central Government may direct a list in Form IV of deposits made with it under the Act, as on 31st December of the preceding year.

10-A. Pakistan securities. Securities guaranteed fully as regards principal and interest by a Provincial Government in Pakistan or charged on the revenues of any part of that Dominion and debentures or other securities for money issued by or on behalf of the trustees of the Port of Karachi shall be recognised, in the case of insurers incorporated or domiciled in India, as approved securities

(a) for the purposes of Sections 7, 98 or 73, if such securities had been deposited with the Bank in pursuance of the Act before the 15th day of August, 1947, and continue to be so deposited with the Bank since that date, and

(b) for the purposes of Sections 27 and 27-A, if such securities had been acquired by an insurer or a provident society before the 15th day of August, 1947, and continue to be held since that date by the insurer or the provident society.

10-B. Assets deemed to be approved investments. (1) For the purposes of sub-section (1) of Section 27 of the Act, the following assets shall be deemed to be assets invested or kept invested in approved investments specified in sub-section (1) of Section 27-A of the Act

(a) interest, dividend and rents (outstanding and accrued);

(b) cash in hand and with bank (other than banks in liquidation) in current and collection accounts;

(c) bills receivable;

(d) value of furniture, fittings, machinery, stationery and library but not exceeding Rs 10,000 or one per cent of the sum referred to in sub-section (1) of Section 27 of the Act, whichever is greater;

(e) value of motor cars but not exceeding Rs 20,000 or one-half per cent of the sum referred to in sub-section (1) of Section 27 of the Act, whichever is greater;

(f) stamps on hand;

(g) amount of income tax directed by the Income Tax Authority to be refunded;

(h) temporary advances granted to chief, special and insurance agents to the extent permitted under clause (b) of sub-section (3) of Section 29 of the Act.

7[(2) (i) For the purposes of sub-section (2) of Section 27-B of the Act, the following assets shall be deemed to be assets invested or kept invested in approved investments specified in sub-section (1) of that section, namely

(a) interest, dividend and rents (outstanding and accrued);

(b) cash in hand and with banks (other than banks in liquidation) in current and collection accounts;

(c) bills receivable;

(d) amounts due from other insurers in respect of reinsurance recoveries and deposits or reserves with other insurers in respect of treaties for reinsurances to be accepted.

(ii) In respect of insurers specified in clause (c) of sub-section (16) of Section 27-B of the Act, three-fourths of the value of the following assets shall also be deemed to be approved investments specified in sub-section (1) of Section 27-B of the Act, namely:

(a) Motor cars.

(b) Stamps on hand.

(c) Amount of income tax directed by the Income Tax Authorities to be refunded.]

10-C. Return of investments and changes in investments. (1) The return to be furnished under sub-section (1) of Section 28-A of the Act shall show all the investments made out of the controlled fund and subsisting as at the 31st day of December of the preceding year and shall be in Form IV-A:

8[Provided that in the case of the Life Insurance Corporation of India, the aforesaid return shall show the said investments subsisting as at the last day of the preceding financial year and shall be in Form IV-AAA.]

(2) The return to be furnished under sub-section (2) of Section 28-A of the Act shall be in Form IV-B 9[and in the case of the Life Insurance Corporation of India the said return shall be in Form IV-BBB].

10[(3) The return to be furnished under sub-section (1) of Section 28-B of the Act, shall show all the investments made out of the assets and subsisting as at the 31st day of December of the preceding year and shall be in Form IV-AA.

(4) The return to be furnished under sub-section (2) of Section 28-B of the Act, shall be in Form IV-BB.]

10-D. Charging assets. (1) An insurer may subject the assets forming his controlled fund, not being securities kept invested in pursuance of sub-section (1) of Section 27, to a charge in favour of a banking company for the purpose of raising an over-draft, and investing the money so raised:

Provided that the assets charged do not exceed in value 10 per cent of the controlled fund and the charge is created for a period not exceeding six months.

11[(2) For the purpose of sub-section (11) of Section 27-B the charge created in favour of one or more banking companies in respect of assets offered as security for any loan taken for purposes of any investment or for payment of claims shall be subject to the condition that any loan taken against such assets shall be repaid within a period of three months.]

(1) No person shall supply or exhibit any prospectus or table of premium rates to any other person with a view to the issue of a policy of insurance unless such prospectus or table includes

(a) a description of the contingency or contingencies to be covered by insurance and the class or classes of lives or property eligible for insurance under the terms of such prospectus or table;

(b) a full statement of the circumstances, if any, in which rebates of the premiums quoted in the prospectus or table shall be allowed on the effecting or renewal of a policy, together with the rates of rebate applicable to each case; and

(c) a copy of Section 41 of the Act but not including the proviso to sub-section (1) thereof.

(2) The provisions of sub-rule (1) shall be deemed to have been complied with if to every such prospectus or table of premium rate supplied or exhibited after the date of commencement of the Act is attached in the form of an addendum a statement containing so such of the matters referred to in sub-rule (1) as is not already included in the said prospectuses or tables, but every prospectus and table of premium rates printed after the coming into force of the Act shall have the matters referred to in the said clauses incorporated therein.

12[(1) It shall be clearly indicated

(a) in every proposal form in the case of life insurance; or

(b) in the document, if any, forming the basis of the contract in the case of any other form of insurance, that rebate of premiums shall be allowed only in accordance with the details given in the prospectus or table of premium rates or, as the case may be, the relevant document, and that an offer or acceptance of any other rebate shall be an offence under Section 41 of the Act].

(2) The provisions of sub-rule (2) of Rule 11 shall apply mutatis mutandis to proposal forms, except that, where an addendum is attached to a proposal form, it shall also be signed by the person who signs the proposal form.

12-A. List of insurers. The Controller shall cause to be published in the Gazette of India a list of the members and associate members of the Life Insurance and General Insurance Councils of the Insurance Association of India once every year in the month of January.

12-B. Constituencies of Insurers. (1) Members of the Insurance Association of India who are insurers carrying on life insurance business and having, a premium income in such business of more than three lakhs of rupees in the preceding year shall elect four individuals as members of the Executive Committee of the Life Insurance Council of the Insurance Association of India in the following manner

(a) one individual by such members as have their head offices in the Calcutta area;

(b) two individuals by such members as have their head offices in the Bombay area;

(c) one individual by such members as have their head offices in the Delhi and Madras areas, the members in each area alternately electing the individual, the first election being held in the Delhi area.

(2) Members of the Insurance Association of India who are insurers carrying on life insurance business and having a premium income in such business of less than three lakhs of rupees in the preceding year shall elect four individuals as members of the Executive Committee of the Life Insurance Council of the Insurance Association of India in the following manner

(a) one individual by such members as have their head offices in the Calcutta area;

(b) one individual by such members as have their head offices in the Bombay area;

(c) one individual by such members as have their head offices in the Madras area;

(d) one individual by such members as have their head offices in the Delhi area.

(3) Members of the Insurance Association of India who are insurers carrying on general insurance business shall elect eight individuals as members of the Executive Committee of the General Insurance Council of the Insurance Association of India in the following manner

(a) one individual authorised to stand as a candidate by a member having his head office in the Calcutta area and whose premium income in such business in the preceding year exceeded ten lakhs of rupees and elected to the Committee by such members as have their head offices in Calcutta area;

(b) one individual authorised to stand as a candidate by a member having his head office in the Calcutta area and whose premium income in such business in the preceding year did not exceed ten lakhs of rupees and elected to the Committee by such members as have their head offices in the Calcutta area;

(c) two individuals each of whom is authorised to stand as a candidate by a member having his head office in the Bombay area and whose premium in such business in the preceding year exceeded five lakhs of rupees and elected to the Committee by such members as have their head offices in the Bombay area;

(d) two individuals each of whom is authorised to stand as a candidate by a member having his head office in the Bombay area and whose premium in such business in the preceding year did not exceed five lakhs of rupees and elected to the Committee by such members as have their head offices in the Bombay area;

(e) one individual elected to the Committee by such members as have their head offices in the Madras area;

(f) one individual elected to the Committee by such members as have their head offices in the Delhi area.

(4) For purpose of this rule if any dispute arises as to which area an insurer belongs, or as to the premium income of an insurer, the Controller shall decide the question and his decision shall be final.

Explanation. In this rule

(i) preceding year means the calendar year preceding the calendar year in which the election takes place;

(ii) premium income means the gross direct premium income of the insurer without taking into account premium income on reinsurances accepted or ceded.

12-C. Duties of dissolved Executive Committees. When the Executive Committee of the Life Insurance Council or of the General Insurance Council is dissolved, the outgoing members thereof who continue to hold office until a new Executive Committee is constituted, shall be entitled to discharge the following duties in the meantime

(a) keep and maintain up-to-date a copy of the list of all members and associate members of the Life Insurance Council or the General Insurance Council, as the case may be;

(b) supervise the work of officers and servants employed by the Committee;

(c) collect the prescribed fees; and

(d) help the Chairman and the Secretary to conduct the necessary elections to the new Executive Committee.

12-D. Joint meetings of Executive Committees. (1) When a request is received by the Central Government from

(a) the Controller of Insurance, or

(b) six individuals who are members of either or both of the Executive Committees of the Life Insurance Council and the General Insurance Council, or

(c) thirty insurers,

that a joint meeting of the Executive Committees should consider a matter specified in the request, the Central Government may, on being satisfied that the matter is one of common interests to the two Executive Committees, direct that a joint meeting of the two Executive Committees be convened to consider the matter.

(2) It shall be the duty of the Chairmen of the two Executive Committees to convene, as soon as may be after the issue of the direction under preceding sub-rule a joint meeting of all the members of the two Executive Committees at such place and at such time and date as the two Chairmen may decide.

(3) At such meeting, one of the two Chairmen shall be elected by the members present to preside and the matter referred to and no other matter shall be considered.

(4) The meeting may be adjourned from time to time to be held not necessarily at the same place, with the consent of the members present for further consideration of the matter or for considering a report from any sub-committee appointed for the purpose by the members present, but minutes of each meeting shall be kept and a copy thereof shall be furnished to the Controller of Insurance immediately after the meeting.

(1) A person shall be eligible for election as a director of an insurance company under Section 48 of the Act, if he holds one or more policies of life insurance issued by the company and satisfying the provisions of the said section and both the following requirements, namely

(a) the policies shall insure either a total sum, including any bonuses that may have attached to them before the date of election, of not less than Rs 3000, where the company has at that date been carrying on life insurance business for not less than five years, or of not less thanRs 1000 in other cases, or annuities on human life of a total amount of not less than Rs 250 per annum without regard to the age of the company, and

(b) where the company has been carrying on life insurance business for more than two years, all the policies held in compliance with clause (a) shall have been in force for not less than one, two or three years, according as the company has at the date of election been carrying on life insurance business for not more than five years, for more than five but not more than eight years, or for more than eight years:

Provided that the Central Government may, in respect of any insurer after taking into account the maximum sum assured permissible according to constitution or rules and regulations and other conditions, modify the above qualifications by fixing (i) for the sum insured or annuity, an amount lower than the corresponding amount mentioned in clause (a) or (ii) for the period, a period shorter than the one mentioned in clause (b) or (iii) both.

(2) If at any date after election as a director, a person ceases to be a person holding one or more policies of life insurance satisfying the provisions of Section 48 and both the requirements specified in sub-rule (1) he shall forthwith cease to be an elected director of the company.

(1) The election of Directors under Section 48 of the Act shall take place at a meeting (to be held at the place where the principal office of the company is situated or, with the prior consent and approval in writing of the Controller of Insurance, at any other place) of the holders of policies of life insurance issued by the company, who are eligible to vote at such election and the first such election shall be held as soon as possible after the said section becomes applicable accept office.

(2) Not less than three months before the meeting is to be held, there shall be inserted in a newspaper published in the English language and in a newspaper published in an Indian language circulating in the place where the principal office of the company is situated and, if there are policy-holders of the company residing in a State other than that in which the principal office of the company is situated, in a newspaper published in the English language and, if the company so desires, in a newspaper published in a principal language of that State, both being papers circulating in that State, a notice stating the number of directors to be elected at, and the time and place of, such meeting, which shall be fixed with a view to affording voters the fullest opportunities for attending, and informing policy-holders how to obtain admission to the meeting according to the manner hereinafter described. Such notice shall also set forth the qualifications which a person must possess in order to be eligible for election as a director, and shall invite applications from eligible persons prepared to accept office:

Provided that, where a company prints on its policies the qualifications of elected directors as set forth in Rule 13, and issues, at least six months before the election, to all existing policy-holders whose policies do not contain a statement of those qualifications as modified up-to-date, a notice setting forth such modified qualifications, the notice to be published in newspapers in accordance with this sub-rule need not set forth those qualifications:

Provided further that a company may, in respect of one or more States instead of publishing the notice in newspapers, send it by post to every policy-holder residing therein.

(3) The applications from eligible persons prepared to accept office as elected directors of the company shall be sent by registered post to the principal office of the company so as to reach it not less than two months before the date of the meeting. Such applications shall be made in the English language or in a principal language of the State in which the principal office of the company is situated. If the number of such applicants does not exceed the number of directors to be elected, all such applicants shall be deemed to have been elected as directors and it shall not be necessary to hold the meeting of policy-holders as previously announced. The company shall in that event inform the policy-holders forthwith by notice inserted in newspapers as in sub-rule (2), or by notice sent individually by post to those policy-holders who are eligible to vote and who apply for a certificate of admission under sub-rule (4) or by both methods, of the names of persons elected as directors and of the cancellation of the meeting.

(3-A) An application sent under sub-rule (3) shall give the applicant's name and address and the numbers of and amounts of the sums insured by the policies by virtue of which he claims to be eligible for election.

(4) Every policy-holder who desires to attend the meeting shall apply to the company for a certificate of admission, such application to reach the company not less than two months before the date of the meeting, and the company on being satisfied that the applicant holds a policy of life insurance issued by the company not less than six months before the date of election shall issue a certificate at least one month before the date of the meeting. Such certificate shall, if applied for by post, be sent only to the address of the policy-holder or if applied for in person be delivered only on production of the relevant policy and shall, in any case, be accompanied by a statement of the names and addresses of the eligible persons prepared to accept office whose applications have been received by the company under sub-rule (3). A certificate of admission shall not be transferable.

(5) No person other than those whose presence is, in the opinion of the Chairman, necessary for the conduct of the meeting shall be admitted to the meeting unless he produces the certificate of admission granted to him under sub-rule (4).

(6) The meeting shall be presided over by the Chairman for the time being of the Board of Directors of the company, or in his absence by any director nominated by him, or in the absence of any such director by a Chairman elected by the policy-holders present at the meeting.

(7) Votes for the election of directors may be given at the meeting either personally or by proxy and in the manner hereinafter provided in this rule. The instrument appointing a proxy shall be in writing in Form IV-C under the hand of the appointer in favour of a policy-holder, and shall be presented at the principal office of the company not less than one month before the date of the meeting. No policy-holder shall appoint more than one proxy irrespective of policies he holds.

(8) Every policy-holder present at the meeting shall be given one voting paper on his own behalf irrespective of the number of policies he holds and one voting paper in respect of each proxy, if any, which he holds. The number of votes to be given on each voting paper shall not exceed the number of directors to be elected and not more than one vote shall be given on each voting paper to any one candidate:

Provided that a policy-holder may, if he prefers, vote on one voting paper in respect of all the proxies he holds. In that event, the number of votes to be given on the voting paper shall not exceed the number of directors to be elected multiplied by the number of proxies held and the number of votes given to any one candidate on that paper shall not exceed the number of proxies held.

(8-A) If any policy-holder is a lunatic or an idiot, he may vote by his legal representative; and if any policy-holder is a minor he may vote by his legally appointed guardian, or any one of such guardians, if more than one.

(8-B) If a policy has been proposed for, and taken out jointly by, more than one person having insurable interest between them, each such person shall be entitled to vote as a holder of that policy.

(9) The votes shall be counted by the company's auditors if present in that capacity, or failing them by scrutineers appointed by the meeting and working under the supervision of the Chairman. The result of the ballot shall be announced at the meeting, and in the event of an equality of votes the election shall be decided by lot:

Provided that if the counting of votes is not likely to be completed by 7 p.m. on the date of the meeting, the Chairman may lock, seal and take charge of the ballot box in the presence of the meeting and postpone the counting of votes by not more than 48 hours. The opening of the ballot box shall be done by the Chairman and the counting shall be carried out by the same persons as are specified in this sub-rule for this purpose within the said 48 hours after reasonable notice of the time and place where the counting is to take place has been given to the candidates but no others except those whose presence is necessary for the purpose of making the counting and the declaration. Each candidate or in his absence his authorised representative shall be allowed to be present to witness the opening and the counting. The result of the ballot shall then be communicated by notice published in newspapers as in sub-rule (2) or individually by post to all policy-holders who were present in person at the election or by both methods.

(10) For the purposes of sub-rule (3) of Rule 15, a list shall be prepared of those of the unsuccessful candidates in whose favour any valid votes are cast in descending order of the number of such votes cast for each. If two or more such candidates have an equal number of such votes cast for them, they shall be placed in the list in the alphabetical order of their signatures in their applications under sub-rule (3). For the purposes of this sub-rule, no valid vote shall be deemed to be cast for a candidate if his own vote is the only vote cast for him.

(10-A) No election shall be held at any meeting convened under these rules unless a quorum of policy-holders holding certificates issued under sub-rule (4) is personally present at the time when the meeting proceeds to business. The number of such certificate holders who must personally be present to constitute a quorum shall be five times the number of directors to be elected at that meeting.

(10-B) If within half an hour from the time appointed for the meeting a quorum is not present, the meeting shall stand adjourned to the same day in the next week at the same time and place, and if at the adjourned meeting a quorum is not present within half an hour from the time appointed for the meeting, the policy-holders present and holding certificates issued under sub-rule (4) shall be a quorum.

(11) An election held in accordance with this rule shall not be invalid merely by reason of the accidental omission to send any notice or other document to, or the non-receipt of any notice or other document by, any policy-holder, or of any other accidental irregularity or informality in the observance of the provisions of this rule.

(1) An election of directors under these rules (other than the first such election) shall be held not later than three years from the date of the last such election:

Provided that an election for the holding of which the latest date otherwise permissible under this sub-rule is a date in the year 1943, may be postponed to a date not later than the 31st December, 1944.

(2) At every meeting of policy-holders held in pursuance of sub-rule (1), all the directors elected or appointed under these rules shall retire, but any director so retiring shall, if he remains eligible under Rule 13, be eligible for re-election.

(3) In the event of a casual vacancy arising among the directors elected or appointed under these rules, the vacancy shall be filled by appointing the person highest in the list prepared under sub-rule (10) of Rule 14, who remains eligible under Rule 13 and is willing to act as a director.

(4) Any person in the said list who is not appointed in his turn under sub-rule (3) either because he has ceased to be eligible under Rule 13 or because of his unwillingness to act shall be removed from the list.

(5) In the event of there being no person available for appointment under sub-rule (3), the casual vacancy shall be filled by the remaining directors (if not less than two in number) elected or appointed under these rules by appointing a person eligible under Rule 13, or if such directors (or a majority of them) are unable to agree upon a person to be appointed, the appointment shall be decided by lot from amongst the persons eligible under Rule 13 who have been considered for the appointment by the said remaining directors.

(6) In the event of there being only one or no such remaining director, the casual vacancy shall be filled by an election in accordance with these rules to be held not later than six months from the date on which the vacancy occurred, unless the company secures from the Central Government within two months from the said date an exemption for that purpose from the provisions of Section 48 of the Act under clause (b) of sub-section (3) thereof.

(7) Any person appointed or elected to fill a casual vacancy shall be subject to retirement at the same time as would have been the director in whose place he is appointed or elected.

(8) An election held in pursuance of sub-rule (6) to fill a casual vacancy shall not be reckoned as an election for the purpose of sub-rule (1).

(9) Nothing in this rule shall be deemed to affect the application of Regulations 78 and 79 in Table A of the First Schedule to the Indian Companies Act, 1913 (7 of 1913), to directors elected or appointed otherwise than under these rules.

The fee for obtaining or renewing a licence to act as an insurance agent shall be 13[Rs 15], provided that an additional fee of 14[Rs 7] shall be paid if the application for the renewal of the licence does not reach the Controller at least 30 days before the date on which the licence ceases to remain in force.

16-A. Issue of licences to insurance agents. An applicant who desires to obtain or renew a licence to act as an insurance agent shall proceed as follows:

15[(a) The applicant shall obtain from the Controller of Insurance a form of application for a licence which shall be,

(i) in the case of an individual, Form V, or Form V-A, if he applies for the grant of a licence for the first time or for the renewal of the licence held by him, as the case may be;

(ii) in the case of a company or firm, Form V-P, or Form V-PA, if it applies for the grant of a licence for the first time or for the renewal of the licence held by it, as the case may be;

(iii) in the case of a co-operative society or a Panchayat, Form V-S, or Form V-SA, if it applies for the grant of a licence for the first time or for the renewal of a licence held by it, as the case may be;]

16[(iv) in the case of a society registered under the Societies Registration Act, 1860 (21 of 1860), Form V-SS or Form V-SSA if it applies for the grant of a licence for the first time or for the renewal of the licence held by him, as the case may be.]

(b) He shall then send to the Controller of Insurance the completed application form with the fee which shall be paid in the form of stamps to the value of Rs 15 or Rs 22 as the case may be, and the stamp shall be affixed to the application in the proper place.

17[(c) The Controller of Insurance or the officer authorised by him under sub-section (1) of Section 42 of the Act, shall issue a licence after taking all reasonable steps to satisfy himself that the application is in order and that the applicant is not disqualified from holding a licence. No application shall be considered by the Controller of Insurance unless the particulars in Form V-B, Form V-PB, Form V-SB 18[or Form V-SSB], as the case may be, have been filled in by the applicant.

In the case of

(i) an individual, the licence shall be in Form V-B;

(ii) a company or firm, it shall be in Form V-PB;

(iii) a co-operative society or a Panchayat, it shall be in Form V-SB;]

19[(iv) a society registered under the Societies Registration Act, 1860 (21 of 1860), it shall be in Form V-SSB];

(d) No application for the renewal of licence will be accepted if it reaches the Controller on or after the date on which the licence ceases to be in force:

Provided, however, that if an applicant desires that his application should be considered under the proviso to sub-section (3-A) of Section 42 of the Act, he shall forward along with such application a request to that effect, with stamps to the value of Rs 75 affixed thereon and a statement of all the facts and particulars which are to be taken into consideration by the Controller for the purpose of examining whether undue hardship would be caused if no renewal of licence is granted:

Provided further that the applicant, if required to do so by the Controller, shall furnish documentary proof of any of the particulars or facts mentioned in the statement referred to above.

16-B. Bona fide insurance agents for the purposes of Section 41. The conditions to be satisfied by an insurance agent to establish that he is a bona fide insurance agent employed by the insurer for the purposes of the proviso to sub-section (1) of Section 41 of the Act shall be the following, namely:

(a) He must have secured policies on six different lives excluding his own.

(b) He must have been an insurance agent continuously from the time of his soliciting or procuring the first policy on each of such six lives or proposing for the policy on his own life, whichever is earlier, till the time when the policies on those six lives and the policy on his own life have all been issued.

16-C. Fee for Principal, Chief and Special Agents. The fee for obtaining or renewing a certificate to act as a principal agent or chief agent shall be Rs 25 and the fee for obtaining or renewing a certificate to act as a special agent shall be Rs 10:

Provided that an additional fee of Rs 5 in the case of a principal agent or a chief agent, and Rs 3 in the case of a special agent, shall be paid, if the application for renewal of the certificate reaches the Controller on or after the date on which the certificate ceases to be in force but within 12 months of the aforesaid date.

16-D. Issue of certificates to Principal, Chief and Special Agents. A person, who desires to obtain or renew a certificate to act as a principal agent, or chief agent or special agent, shall proceed as follows:

(a) He shall obtain from the Controller a form of application for a certificate which form shall be as prescribed in Form V-C or Form V-D, Form V-C shall be used when an applicant applies for a certificate for the first time, or for a fresh certificate, while Form V-D shall be used when an applicant applies for the renewal of the certificate already held by him. No application for the renewal of a certificate will be accepted if it reaches the Controller after a period of 12 months from the date on which the certificate ceases to be in force.

(b) He shall then send to the Controller the completed application form with stamps to the value of Rs 25 or Rs 30 or Rs 10 or Rs 13, as the case may be, affixed thereon in the proper place.

(c) The Controller or the officer authorised by him under sub-section (1) of Section 42-A of the Act shall, after taking all reasonable steps to satisfy himself that the application is in order and that the applicant is not disqualified from holding a certificate, issue a certificate in Form V-E.

16-E. Issue of duplicate licences and certificates. (a) A person to whom a licence or a certificate has been issued 20[under Section 42 or Section 42-A of the Act] shall, if such licence or certificate has been lost, destroyed or mutilated, submit to the Controller an application requesting the issue of a duplicate licence or certificate with a fee of Re 1 in the case of licence, and Rs 2 in the case of a certificate, paid in the form of stamp duly affixed thereon and with a declaration giving full details regarding the issue and loss, destruction or mutilation of the licence or certificate, and the mutilated pieces, if any, shall be returned to the Controller with the said application.

(b) The Controller, after satisfying himself that the original licence or certificate has been lost, destroyed, or mutilated, issue a duplicate licence in Form V-B or Form V-PB or Form V-SB or Form V-SSB or a certificate in Form V-E, as the case may be, with an endorsement thereon that it is a duplicate.

16-F. Description of stamp. Any fee specified in Rules 16, 16-A, 16-C, 16-D and 16-E shall be paid in the form of Government of India Insurance stamps available from a Government treasury.

16-G. Allowance for unused stamps. Where an applicant for licence or a certificate has inadvertently used Government of India Insurance stamp of a greater value than is necessary or where no licence or certificate in respect of an application bearing such stamp has been issued, refund may be made of the excess of the necessary fee or of the value of the stamp, as the case may be, on such application.

16-H. Cancellation of licences or certificates. Where the Controller cancels the licence of an insurance agent under sub-section (5) of Section 42 or the certificate of a principal or chief or special agent under sub-section (4) of Section 42-A, he shall

(a) inform all the officers authorised by him under sub-section (1) of Section 42 or 42-A that the licence or the certificate, as the case may be, has been cancelled;

(b) require the person concerned to return the licence or certificate issued to him; and

(c) cause the fact of cancellation to be published in the Gazette of India and in such State Gazette or Gazettes as he deems fit.

The declaration to be furnished by a transferee in pursuance of clause (b)(i) of sub-section (4) of Section 6-A of the Act to a public company limited by shares having its registered office in the States and carrying on any class of insurance business shall be in Form V-F.

17-A. Declaration as to beneficial interest in shares. The declaration to be made in pursuance of sub-section (5) of Section 6-A of the Act to a public company limited by shares having its registered office in the States and carrying on life insurance business by a person who has any interest in any of its shares standing in the name of another person shall be in Form V-G.

21[17-AA. Form for declaration. The declaration to be made in pursuance of sub-section (5) of Section 6-A of the Act to a public company limited by shares having its registered office in India and carrying on general insurance business by a person who has any interest in any of its shares standing in the name of another person shall be in Form V-GG.]

17-B. Disposal of shares by Administrator-General. As soon as the Administrator-General of a State has taken charge of any shares of a public company vesting in him under sub-section (8) of Section 6-A of the Act, he shall furnish full details of the shares to the Controller and he shall try, as soon as may be, to sell the shares, whether as a whole or in part or whether in the open market or by private sale, at a price not lower than the price fixed by the Controller who may vary the price fixed from time to time. The proceeds shall be handed over to such person as, in the opinion of the Administrator-General is by law entitled thereto.

17-C. Statement of the bases of Premiums. (1) The statement of the bases of premiums under sub-section (1) of Section 40-B of the Act shall be in Form V-H.

(2) In respect of premiums currently used by an insurer at the commencement of the Insurance (Amendment) Act, 1950, the statement of the bases of premiums certified by an actuary shall be furnished to the Controller within six months from such commencement.

(3) A statement on the basis of premiums to be newly used after such commencement certified by an actuary shall be furnished to the Controller before such premiums are offered by the insurer to prospective policy-holders.

17-D. Limitation of expenses of management in life insurance business. After the 31st day of December, 1950, no insurer shall, in respect of the life insurance business transacted by him in India, spend as expenses of management in any calendar year an amount exceeding the aggregate sum of

(i) five per cent of all premiums received during the year on policies granting an immediate annuity or a deferred annuity in consideration of a single premium, and five per cent of all premiums received on other single premium policies during the year;

(ii) ten per cent of all first year's premiums and four per cent of all renewal premiums, received during the year on policies granting deferred annuity in consideration of more than one premium;

(iii) one-twentieth of one per cent of the average of the total sums assured by policies on which no further premiums are payable (less reinsurances) at the beginning and end of the year;

(iv) one per cent of all annuities paid during the year;

(v) an amount computed on the basis of the percentages for the time being appropriate to the duration of the insurer's life insurance business specified in the following table, namely

Provided that the percentages specified in the above table shall in respect of any first year's premium where the maximum premiums paying period under the policy is not throughout life not more than eleven years, be reduced to a number equal to seven-and-a-half times the number of whole years in that period.

Explanation I. In this rule, business in force means, in relation to any expense incurred, the total sum assured, with bonuses, without taking into account reinsurances ceded or accepted, by an insurer in respect of the whole of his life insurance business on the last working day of the year preceding the calendar year in which the expense is incurred.

Explanation II. The duration of an insurer's life insurance business shall be reckoned from the beginning of the calendar year of commencement of the business if the date of commencement is in the first half of the year and from the end of the calendar year of such commencement if the date of commencement is in the second half of the year.

17-E. Limitation of expenses of management in general insurance business. (1) After the 31st day of December, 1949, no insurer shall, in respect of general insurance business transacted by him in India other than marine insurance business, spend in any calendar year as expenses of management, including commission or remuneration for procuring business an amount exceeding the sum of

(i) the amount of commission or other remuneration paid to insurance agents and principal agents in respect of that business transacted in the year but 22[not exceeding in respect of fire insurance business 5 per cent and in respect of miscellaneous insurance business 10 per cent] of the gross premium income written direct in India in respect of that business in the year; and

(ii) an amount computed on the basis of the percentages appropriate to the various parts of total gross premium income written direct in India during the year:

(2) After the 31st day of December, 1949, no insurer shall, in respect of marine insurance business transacted by him in India, spend in any calendar year as expenses of management, including commission or remuneration for procuring business an amount exceeding the sum of

(i) the amount of commission or other remuneration paid to insurance agents and principal agents in respect of that business transacted in the year but not exceeding in amount five per cent of the gross premium income written direct in India in respect of that business in the year; and

(ii) an amount computed on the basis of percentages appropriate to the various parts of his total gross premium income written direct in India during the year:

(3) Notwithstanding anything contained in sub-rules (1) and (2), an insurer may during the first ten years of his general insurance business, spend in any calendar year as expenses of management including commission or remuneration for procuring business an additional amount, in respect of his general insurance business, not exceeding

(i) during the first three years, the interest earned on the paid-up capital in that year;

(ii) during the second period of three years, an amount equal to 10 per cent of the gross premium income written direct in India, or to the interest earned on the paid-up capital in that year, whichever is less;

(iii) during the seventh and eighth years an amount equal to 5 per cent of the gross premium income written direct in India, or to three-fourths of the interest earned on the paid-up capital in that year whichever is less:

Provided that nothing in this clause shall apply to regulate the expenses of an insurer in any such year if his gross premium income in that year exceeds twenty-five lakhs of rupees;

(iv) during the ninth and tenth years an amount equal to 3 per cent of the gross premium income written direct in India, or to half of the interest earned on the paid-up capital in that year whichever is less:

Provided that nothing in this clause shall apply to regulate the expenses of an insurer in any such year if his gross premium income in that exceeds twenty-five lakhs of rupees.

Explanation. 23[* * *]

17-F. Head Office expenses. (1) The share of the Head Office expenses in the case of an insurer having his principal place of business outside India for the purposes of Sections 40-B and 40-C of the Act shall not be less than

(i) in respect of life insurance business 10 per cent of the first year's premium as shown in the revenue account, and 1 per cent of the renewal premiums as shown in the revenue account in respect of that business transacted in India during the year; and

(ii) in respect of general insurance business 5 per cent of the gross premium income written direct in India during the year in respect of that business.

24[(2) The share of the Head Office expenses in the case of an insurer having his principal place of business in India for the purposes of sub-clause (i) of clause (b) of the Explanation to Section 40-C of the Act shall not exceed 5 per cent of the gross premium income written direct outside India during the year.]

25[17-FA. Principal Office expenses. For the purposes of sub-clause (ii) of clause (b) of the Explanation to Section 40-C of the Act, the share of expenses in the case of an insurer having his principal place of business outside India in respect of general insurance business transacted by him outside India through his office in India shall not exceed 5 per cent of the gross premium income written direct outside India through his office in India during the year.]

26[17-FB. Calculation of proper share of managerial expenses. For the purposes of sub-clause (iii) of clause (b) of the Explanation to Section 40-C of the Act, the proper share of managerial expenses, that may be excluded in computing the expenses in India, shall be computed in the following manner, namely

(a) in the case of an insurer having his principal place of business in India, the same proportion of the total remuneration received by the Chief Executive Officer of the insurer (by whatever name called) as 15 per cent, of the paid-up capital of the insurer bears to the total gross premium written direct in India by the insurer;

(b) in the case of an insurer having his principal place of business outside India, nil.

17-G. Action against Extravagant Life Insurers. (1) If it appears from the report of an actuarial valuation under sub-section (3) of Section 64-K of the Act, read with the statutory returns relating to accounts that the insurer concerned is insolvent, the Controller may cancel the registration of such insurer and request the Executive Committee of Life Insurance Council to consider whether in the circumstances of the case it is possible to have the business of the insurer reconstructed or whether some other insurer is willing to take over the business.

(2) When such a request is received, the Executive Committee of the Life Insurance Council shall meet not later than one month of the receipt of such request to consider the matter and within 7 days of such meeting shall communicate its decision to the Controller.

(3) If the Executive Committee is unable to meet within the time specified in sub-rule (2) or is unable to suggest any practical steps for the reconstruction or transfer, the Controller may as soon as may be, apply to the Court for the winding up of that insurer.

(4) If the valuation under sub-section (3) of Section 64-K does not disclose the insurer to be insolvent, the actuary making the investigation shall append to his report a statement whether an encroachment on the bonus loadings contained in the premiums has occurred and whether such encroachment is due either partly or wholly to heavy expenses incurred by the insurer after giving credit for any profits made in other directions. The Controller may request the Executive Committee of the Life Insurance Council for advice so that such encroachment may neither continue nor recur and the Executive Committee shall meet within a month of the receipt of such request and make such recommendations as it deems fit.

(5) On receipt of the recommendations referred to in sub-rule (3) or sub-rule (4), the Controller may issue such directions to the insurer concerned as he deems fit and if the insurer complies with such directions, the cancelled registration may be revived wherever possible or where it is not so possible, the insurer may be registered afresh.

(6) If the directions are not complied with, the Controller may apply to the Court for the winding up of the insurer.

17-H. Action against Extravagant General Insurers. (1) In pursuance of sub-section (3) of Section 64-M of the Act the Controller may

(a) cancel the registration of the insurer under the Act, and

(b) request the Executive Committee of the General Insurance Council to consider practical steps for the reconstruction of the insurer concerned or for transferring its business to some other insurer.

(2) When such a request as is referred to in the preceding sub-rule is received by the Executive Committee of the General Insurance Council, it shall meet not later than one month of the receipt of such request to consider the request and within seven days of such meeting shall communicate its decision to the Controller.

(3) The Controller may, after considering the recommendations of the Executive Committee in this behalf apply to the court for the winding up of the insurer concerned if he thinks fit.

17-I.27[Omitted.]

17-J.28[Omitted.]

17-K.29[Omitted.]

(1) Provident societies which immediately before the commencement of the Act were transacting bond investment business may continue to receive premiums or contributions and to make payments in respect of such business but shall not undertake any new business of that class.

(2) For the purpose of sub-rule (1), bond investment business means the business of effecting contracts by the issue of bonds, endowment certificates or other documents, whereby in return for one or more premiums paid to the provident society, the payment is insured of a sum or series of sums, at a future date or dates, whether fixed before hand or determined by chance.

(1) Every provident society shall in addition to the matters specified in clauses (a) to (o) of sub-section (1) of Section 74 of the Act set forth in its rules

(i) that where a policy is applied for on the life of a person other than the person paying the premiums on such policy, the name of the person paying the premiums and his relationship to the life insured shall be inserted in the policy, the policy shall not be issued till the life insured (or if he be not of age his legal guardian), has given his consent in writing to the insurance being effected, and the amount secured shall not be excessive having regard to the interest of the person paying the premiums in the life insured;

(ii) the disqualifications, if any, due to change of occupation, residence, or other specified cause;

(iii) the terms upon which any policy may be kept in force for a reduced benefit without liability to payment of further premiums;

(iv) a statement to the effect that all policies issued after the commencement of the Act shall have clearly set out therein the matters referred to in clauses (f), (g), (h), (i) and (j) of sub-section (1) of Section 74 of the Act and those referred to in clauses (ii) and (iii) above;

(v) the method of voting at the meeting of the managing body and the number constituting a quorum;

(vi) a statement that no dividend shall be declared except as a result of a valuation under sub-section (1) of Section 81;

(vii) a statement that no bonus other than an interim bonus shall be declared except as a result of a valuation made in accordance with sub-section (1) of Section 81, that the rate of such bonus shall not exceed that recommended by the actuary, and that no interim bonus shall be declared at a rate exceeding that approved by an actuary; and

(viii) a statement that the paid-up capital shall not be treated as part of the society's assets for the purpose of showing a divisible surplus at the time of any investigation made under sub-section (1) of Section 81, and that where assets of the nature of organisation or preliminary expenses exceed the paid-up capital the fund shall be diminished by the amount of such excess for the purpose of ascertaining the financial condition of the society.

(2) All rules made by a Local or Provincial Government under Section 24 of the Provident Insurance Societies Act, 1912, are hereby repealed.

19-A. Every provident society shall, commencing from a date not later than the 1st January, 1943, maintain at its principal office in the States the following registers in the forms specified below or as near thereto as possible provided the information to be shown is not reduced thereby in respect of all its transactions subsisting on or after that date, namely:

(i) A register of members (but not including membership merely by virtue of being a policy-holder), proprietors and shareholders. . . . . . . . . . in Form VI-A.

(ii) A register of directors, manager, secretary and other officers . . . . . . . . in Form VI-B.

(iii) A proposal register . . . . . . . . . . . . . . . . in Form VI-C.

(iv) A register of policies . . . . . . in Form VI-D in respect of all policies issued from a date not later than 1st January, 1943. [Separate registers shall be maintained for each contingency specified in or prescribed under sub-section (1) of Section 65 of the Act in respect of which the society carries on business.]

(v) A premium register . . . . . in Form VI-E.

(vi) A lapse register showing the details in respect of each policy which is treated by the society as having lapsed . . . . . . . . . . . in Form VI-F.

(vii) A register of claims not including annuities . . . . . . . . . . in FormVI-G.

(viii) A register of annuity payments . . . . . . . in Form VI-H.

(ix) A register of agents . . . . . . in Form VIII:

Provided that

(a) any register printed after this rule is made and purporting to contain the information specified in any of the registers prescribed by this rule shall be in the Form prescribed therefor;

(b) if any of the registers required to be kept in accordance with Section 79 of the Act, as it stood before the commencement of the Insurance (Amendment) Act, 1941, is not kept, or if any of the registers so kept is exhausted, the society shall maintain forthwith the corresponding register or registers prescribed by this rule;

(c) if no registers are maintained corresponding to the registers prescribed by clauses (iii), (v) and (vi) of this rule, the society shall, commencing from a date not later than 1st April, 1942, maintain the registers prescribed by these clauses;

(d) it shall not be necessary to show the name of the life insured in addition to the policy-number in the register in Form VI-D, VI-E, VI-F, VI-G or VI-H, if the register concerned is prepared by mechanical means.

(1) The revenue account and balance sheet of a provident society shall be prepared in accordance with Forms VII and VIII respectively, and in their completion regard shall be had to the notes appended thereto.

(2) If it so desires a provident society may submit a profit and loss account in addition to a revenue account and balance sheet.

(3) The statements required under clauses (a), (i) and (b) of sub-section (2) of Section 80 of the Act shall be prepared in accordance with Forms IX and X respectively.

(1) Whenever an investigation is made into the financial condition of a provident society under Section 81 of the Act the report of the actuary

(a) shall, so far as practicable, be prepared in accordance with the regulations and requirements contained in the Fourth Schedule to the Act except that it shall not be necessary to supply a consolidated revenue account in Form G, a statement in Form DDD of additions to and deductions from policies and a statement in Form DDDD of particulars of policies forfeited or lapsed;

(b) shall contain in the appropriate places the information required in clauses (a) to (e) of sub-section (2) of Section 81;

(c) shall state the proportion of the renewal premium income spent in payment of commission and other expenses in each year during the period since the last investigation after allowing as the cost of the new business of the year, 7 per cent of single premiums and 90 per cent of first year's premiums falling due in the year after deduction of those unpaid under policies allowed to lapse in the year;

(d) shall state whether the actuary has taken steps to prevent the policy reserve values from being less than the minimum surrender values;

(e) shall have appended to it a certificate as prescribed in sub-section (2) of Section 81; and

(f) shall contain a statement that in no case where a policy has been written off as a lapse does there exist any further liability actual or contingent.

(2) Where an investigation into the financial condition of a provident society is made as at a date other than the expiration of the year of account, the accounts for the period since the expiration of the last year of account and the balance sheet as at the date at which the investigation is made shall be prepared and audited in the manner provided by the Act and these rules.

Every return furnished to the Controller of Insurance under sub-section (2) of Section 82 of the Act shall be signed in accordance with the provisions of sub-section (2) of Section 15 of the Act.

The notices referred to in sub-section (6) of Section 92 of the Act shall be sent by post to the last known addresses of the persons concerned as recorded in the society's books, and certificates of posting shall be obtained therefor:

Provided that the liquidator may at his discretion send all or any of the notices by registered post.

23-A. Security from liquidator. Where a liquidator is appointed by the Controller under the provisions of sub-section (1) of Section 90 of the Act, the Controller may demand from the liquidator such security and in such form as he may determine.

(1) The fee for registration under Section 3 of the Act shall be five hundred rupees for each of the following classes of insurance business done or to be done by the insurer, namely

(i) life insurance,

(ii) fire insurance,

(iii) marine insurance,

(iv) miscellaneous insurance:

Provided that where the business done or to be done is marine insurance only and relates exclusively to country craft or cargo of country craft or both the fee for registration shall be two hundred and fifty rupees:

Provided further that where an insurer who is already registered for carrying on marine insurance business relating exclusively to country craft or cargo of country craft or both and no other class of insurance business, subsequently, applies for registration for carrying on the entire class of marine insurance or any other class of insurance business specified above, the fee for such registration shall be two hundred and fifty rupees plus the fee for registration of the class, if any, of insurance business other than marine insurance business for which registration is sought.

(1-A) The fee for issue of a duplicate certificate of registration under sub-section (7) of Section 3 shall be ten rupees.

30[(2) The fee for renewal of registration under Section 3-A of the Act for each class of insurance business for which the insurer is registered shall be

(a) in the case of an insurer not carrying on solely reinsurance business, one-fourth of one per cent of the total gross premium written direct in India in that class of insurance business during the year preceding the year in which the application for renewal of registration is required to be made by the insurer, (the amount of fee so arrived at, if not an integral number of rupees, being rounded off to the next lower integral rupee), or five hundred rupees whichever is greater;

(b) in the case of an insurer carrying on solely reinsurance business, one-fourth of one per cent of the total premiums in respect of facultative reinsurances accepted by the insurer in that class of insurance business during the year preceding the year in which the application for renewal of registration is required to be made (the amount of fees so arrived at, if not an integral number of rupees, being rounded off to the next lower integral rupee), or five hundred rupees whichever is greater.]

(3) The fee for registration under Section 70 of the Act shall be two hundred rupees.

(3-A) The fee for issued of a duplicate certificate of registration under sub-section (7) of Section 70 shall be three rupees.

(4) The fee for renewal of registration under Section 70-A of the Act shall be fifty rupees where the total gross premium income including annuity considerations, admission fees and other fees, if any, as shown in the revenue account last furnished under the Act was less than fifty thousand rupees per annum or one hundred rupees in all other cases.

(5) The fee payable for obtaining copies under Section 119 of the Act shall be two rupees for each foolscap page or part of a page of the copy, the copy being prepared with reasonable margin and spacing.

(6) Any fee specified in this rule or payable under sub-section (1) of Section 20 of the Act shall be paid into the Bank or where there is no office of the Bank, into the Imperial Bank of India acting as the agent of that Bank or into any Government Treasury for credit under the head XXI-Miscellaneous Department Fees realised under the Insurance Act, 1938 , and the receipt shall be sent along with the relevant application.

24-A. Fees payable on referring Disputed Claims to Controller. (1) The fee payable at the time of referring to the Controller a dispute relating to the settlement of a claim on a policy of life insurance under sub-section (1) of Section 47-A of the Act is rupees ten or one rupee for each hundred rupees or part thereof of the amount of the claim (including any profit or bonus), whichever is greater.

(2) Any fee specified in this rule shall be paid in the form of Government of India Insurance stamps available on payment from a Government Treasury and the stamp shall be affixed on the application or letter referring the dispute to the Controller and superscribed with the signature of the claimant.

(3) Where in respect of any fee specified in this rule Government of India Insurance stamps of a greater value than is necessary have been inadvertently used or where the application or letter referring a dispute to the Controller bearing such stamps is not entertained by the Controller under Section 47-A of the Act for any reason, refund may be made of the excess over the necessary fee, or of the value of the stamps affixed, as the case may be.

24-B. Fees payable to the Councils. (1) The fees payable by a member or associate member who is an insurer carrying on life insurance business to the Life Insurance Council in each calendar year shall be fifty rupees for every lakh of rupees or part thereof of his gross direct premium income from life insurance business in India in the last but one preceding calendar year subject to a maximum of one thousand and two hundred and fifty rupees.

(2) The fees payable by a member or associate member who is an insurer carrying on general insurance business to the General Insurance Council in each calendar year shall be twenty-five rupees for every ten thousand rupees or part thereof of his gross direct premium income in India in general insurance business in the last but one preceding calendar year.

(3) Any fee specified in this rule shall be paid by means of a crossed bank draft on the Simla Branch of the Imperial Bank of India drawn in favour of the Secretary of the Council concerned.

An actuary investigating the financial condition of an insurer shall, in addition to the reports, statements and abstracts, required to be furnished under Section 13 or clause (c) of sub-section (2) of Section 16 of the Act, furnish statements with regard to the following matters

(a) whether he has taken steps to prevent the policy reserve values from being less than the minimum surrender values;

(b) the proportion of renewal premium income spent in payment of commission and other expenses in each year during the period since the last investigation after allowing, as the cost of the new business of the year, seven and a half per cent of single premiums including consideration for annuities granted and seven and a half per cent for each year of the maximum premiums paying period, but not exceeding ninety per cent in all, of first year's premium falling due in the year after deduction of those unpaid under policies allowed to lapse in the year:

Provided that in respect of any year or accounting period ending on a date earlier than the 31st day of December, 1946, the allowance out of first year's premiums as the cost of the new business shall be ninety per cent irrespective of the premium-paying period.

Explanation I. Where the maximum premiums-paying period includes a fraction of a year, such fraction shall be ignored.

Explanation II. In the case of a whole life policy with premium payable throughout the duration of the policy the maximum premiums-paying period shall be assumed to be twelve years.

25-A. The conditions with which a Mutual Insurance Company shall comply for the purposes of sub-section (2) of Section 4 are that such company shall confine its activities to members of any one profession only or to employees under one employer only and that if any question arises whether or not a particular group of persons belongs to any one profession or is employed under any one employer, the Controller of Insurance shall decide the question and his decision shall be final.

26. Form of declaration under Section 16(2)(d). The declaration referred to in clause (d) of sub-section (2) of Section 16 of the Act shall be in Form XI and one copy of the declaration shall be signed in the manner described in sub-section (2) of Section 15 of the Act.

Every insurer, so long as he has policies on the dividing principal remaining in force, shall submit all returns required under the Act or these rules in respect of such business separately from the corresponding returns in respect of other insurance business, and along with the revenue account shall also furnish in respect of such business returns in Forms XII, XIII and XIV respectively. Four copies shall be submitted of each of these three last mentioned returns, of which one of each shall be signed in the manner described in sub-section (2) of Section 15 of the Act.

28. The sub-clauses of miscellaneous insurance business in respect of each of which a separate account of receipts and payments is to be kept as required under sub-section (1) of Section 10 of the Act on and after the 1st January, 1943, shall be

(1) Capital Redemption insurance business.

(2) Continuous Disability insurance business.

(3) Employer's Liability insurance business.

(4) The business of insuring the payment on the happening of each of the contingencies (a) birth, (b) marriage, and (c) failure of issue, each contingency to constitute a separate business unless the contingencies are combined in a single contract, but not being business comprising insurance contracts which are terminable by the insurer at intervals not exceeding twelve months and under which if a claim arises, the insurer's liability to pay benefit ceases within one year from the date on which the claim arose.

29. For the purpose of the Act, the business of an insurer shall be deemed to be transacted

(a) in India, if the insurance business, wherever effected, relates to any property situate in India or to any vessel or aircraft registered in India;

(b) in India or the States, according as the premiums in respect of those transactions are ordinarily paid in India or the States, as the case may be:

Provided that if any question arises whether any premiums are ordinarily paid inside or outside the States of India, the Controller shall decide the question and his decision shall be final.

(1) An insurer may do all acts necessary for making investments permissible under the Act for the protection of such investments and for the realisation of such investments and may in that connection take over and administer mortgaged property until a suitable occasion arises for its disposal.

(2) An insurer carrying on general insurance business may act as the manager in charge of a branch office of another insurer in respect of general insurance business.

The statement of emoluments exceeding Rs 5000 to be furnished under sub-section (2) of Section 31 shall be in Form XV.

(1) The holder of a policy of life insurance may, in any case where the nominee is a minor, appoint any person to receive the money secured by the policy in the event of his death during the minority of the nominee, and communicate such appointment to the insurer concerned by forwarding the documents relating to such appointment which should be endorsed by the appointee to show his consent thereto.

(2) Any such appointment in order to be effectual shall unless incorporated in the text of the policy itself, be made by an endorsement on the policy.

(3) Any such appointment may at any time before the policy matures for payment be cancelled or changed by an endorsement or further endorsement, as the case may be and communicated to the insurer.

The summary to be published in pursuance of Section 100 of the Act shall be in Form XVI.

31[Reinsurance Advisory Committee

The term of office of the non-official members of the Advisory Committee constituted under sub-section (1) of Section 101-B of the Act (hereafter in this rule and Rules 35 to 38 referred to as the Committee) shall be two years from the date of their nomination. The official members of the Committee shall hold office during the pleasure of the Central Government. All outgoing members shall be eligible for re-nomination.

(1) Any member of the Committee may resign his membership of the Committee by notice in writing addressed to the Secretary to the Government of India, Ministry of Finance 32[Department of Company Affairs and Insurance] to that effect and such resignation shall take effect from the date on which it is accepted by the Central Government.

(2) Casual vacancies in the Committee whether caused by resignation, death or otherwise, shall be filled by nomination by the Central Government and any person, other than an official, so nominated to fill the vacancy shall hold office until the expiry of the term of office of the member in whose place he is nominated.

The Central Government may appoint a secretary to the Committee for the purpose of performing such functions as are assigned to him by these rules or as may be assigned to him by the Chairman of the Committee.

(1) Meetings of the Committee. Meetings of the Committee may be held at such places and at such times as may be decided by the Chairman of the Committee.

(2) Notice of meeting. Notice of any meeting of the Committee shall be sent by the Secretary of the Committee to every member at least seven days before the date of the meeting. The notice shall state briefly the business to be transacted at the meeting.

(3) Quorum for the meeting. Three members shall constitute quorum for a meeting.

(4) Adjournment of a meeting. If the requisite quorum is not available within half an hour of the appointed time for a meeting, the Chairman or in his absence any person nominated by him under sub-rule (5) may adjourn the meeting to such date and time as he may decide.

(5) Chairman to preside at meeting. The Chairman shall preside at all meetings of the Committee. If the Chairman is unable to attend, he may nominate a member of the Committee to preside in his absence.

(6) Decision at a meeting. All matters required to be decided by the Committee shall be decided by the majority of the votes of the members present. The voting shall be by show of hands.

(7) Decision by circulation. Any matter for consideration of the Committee may at the discretion of the Chairman be decided by circulation among the members as an alternative to convening a meeting for the purpose:

Provided that the decision arrived at shall not be valid unless at least three members express an opinion on that matter.

(8) Minutes. The minutes of the proceedings of every meeting shall be circulated to the members of the Committee. The minutes shall be confirmed at the next meeting of the Committee and shall thereafter be recorded in a Minute Book and signed by the Chairman.

(1) Every non-official member shall be entitled for attending meetings of the Committee to travelling and other allowances as under:

(i) Travelling allowance for journeys from the usual place of residence or the place of commencement of the journey to the place of the meeting and the return journey to the place of commencement of the journey or the usual place of residence, whichever is shorter in each case, at the maximum rate for time being admissible to a Central Government servant of the first grade. Subject to the foregoing, the members shall be entitled to travel either by airconditioned class or by air.

(ii) Daily allowance at the maximum rate for the time being admissible to Central Government servants of the first grade at the place of the meeting for the days on which the meeting is held and in respect of one day previous to the commencement of the meeting and one day after the meeting if the member actually arrives on or before and leaves on or after the respective days.

(2) The travelling allowances and daily allowances of an official member shall be governed by the rules for the time being applicable to him for journeys performed on official duty.]

33[(1) Every insurer shall maintain at the principal place of business of the insurer in India the items of information specified in sub-rules (2) and (3):

Provided that where it is not convenient or practicable to maintain any item of information in full detail at such principal office it may be maintained at the branches or other offices in such way however that each such branch or office maintains the relevant part of the information applicable to its working:

Provided further that an insurer carrying on solely reinsurance business shall be deemed to have complied with the provisions of sub-rules (2) and (3) if the information required to be maintained under those sub-rules is readily available from the records of such insurer.

(2) The following items of information shall be maintained in respect of each class or sub-class of insurance business, namely

(i) a record of cover notes issued specifying the identification number, name of party, dates of commencement and where applicable expiry of risk, type of cover granted or cross-reference to the relevant policy and the amount of premium or other money received:

Provided that if duplicate copies of cover notes are maintained in serial order, the requirement of this provision shall be deemed to have been complied with;

(ii) a record of policies, which should be serially numbered, listing all policies issued, entered in chronological order, stating the number of policy, dates of commencement and expiry of risk, name of the insured, premium received, cross-reference to the relevant Bank Guarantee or deposit and the nature of risk granted, cross-reference to any cover-note issued prior to the issue of the policy and cross-reference to any endorsement passed subsequent to the issue of the policy; provided that a serially filed collection of duplicate copies of policies issued shall be deemed sufficient compliance with this requirement, if they are serially numbered and all the relevant information specified in this clause are entered therein;

(iii) a record of premiums showing, according to chronological order of receipt of premiums received, date of receipt, the amount, and name of party from whom received and with cross-reference to policy number or to other document showing the occasion for the payment of such premium:

Provided that if this information is readily available otherwise from the records, a separate record under this head need not be maintained;

(iv) a record of endorsements mentioning the policy number to which attached, dates of commencement and expiry of the endorsement, the type of endorsement and the additional premium charged or refund premium due and cross-reference to the premium register:

Provided that serially filed duplicate copies of endorsements shall be deemed to comply with this requirement if they are serially numbered and each copy contains information about the policy number of the policy to which it is attached;

(v) a record of bank guarantees and deposits giving particulars of the party, amount and conditions of guarantee or deposit and cross-reference to the relevant policy or policies:

Provided that if this information is readily available otherwise from the records, a separate record under this head need not be maintained;

(vi) a record of claims intimated mentioning name of claimant, giving reference to policy number, date of intimation of claim, interest covered, nature and cause of the loss or damage, provisional estimate of loss, amount at which settled, date of settlement of claim, recoveries from salvage or otherwise and whether surveyed:

Provided that two separate records, one relating to claims intimated and the other relating to claims paid, may be maintained if there is adequate cross-referencing of information between them and if the information required under this clause is readily available from them taken together.

(3) The following items of information shall be maintained for the business of the insurer as a whole, namely:

(i) a register of agents, giving in respect of each agent, name, address and particulars of agents' licence held, date of appointment and date of termination of appointment if any:

Provided that a collection of cards or folios shall be deemed sufficient compliance with this requirement if they are filed in a systematic order and contain all the information required under this clause;

(ii) a record of agents giving particulars of business procured by each agent, the amount of premium received on such business and the amount of commission paid thereon;

(iii) duplicate copies of appointment letters issued to the agents, field workers and members of the staff and changes therein;

(iv) a record of employees, excluding salaried field workers, showing name, date of appointment, present designation, present salary and cross-reference to appointment letter and date of termination, if any;

(v) a record of field workers, showing name, date of appointment, present designation, and present salary showing the business expected from and written by them with cross-reference to appointment letters and date of termination, if any;

(vi) cash book and disbursement book;

(vii) a record of investments giving separately for immovable property, securities and scrips, loans on mortgages and other loans, particulars of all the investments held and showing the changes occurring therein from time to time;

(viii) a record of other assets, such as deposits, amounts due, sundry debtors, furniture and fixtures, stationery, and cash in hand and with banks:

Provided that in respect of cash in hand and with banks the requirements of this clause shall be deemed to be complied with if the information about the amount of such cash is readily available from the Cash Book or other records.

(4) Every insurer shall obtain and maintain a legally valid receipt for every payment made and shall maintain the receipts filed in a systematic manner either chronologically or in some other convenient order.

(5) Every insurer shall in respect of any payment made to an employee or other person on account of travelling expenses, maintain a record showing full details of the journey performed, purpose of the journey, details of the fares paid and allowances granted.

(6) Every office of an insurer shall maintain an attendance register of clerical and subordinate staff indicating employees who attend the office each day.

(7) Every office of an insurer issuing any documents used for evidencing of the assumption of risk shall ensure that such documents are serially numbered, shall maintain a record of the serial numbers of the forms of documents issued to each person, and shall maintain a proper check to verify that all the forms of documents issued are properly accounted for.

(8) Every insurer shall retain all the documents relating to claims settled, including copies of any survey or loss assessment reports connected therewith

(i) in respect of every loss or damage on which a claim of less than Rs 5000 has been made, for a period of three years;

(ii) in respect of every loss or damage on which a claim of Rs 5000 or more but less than Rs 20,000 has been made, for a period of five years;

(iii) in respect of every loss or damage on which a claim of Rs 20,000 or more but less than rupees one lakh has been made, for a period of seven years; and

(iv) in respect of every loss or damage on which a claim of rupees one lakh or more has been made, for a period of twelve years;

such period being counted from the date on which the claim is settled.

(9) Every insurer shall maintain a record setting out the names of each insurance company with which he has entered into any permanent facultative reinsurance arrangement, and such record shall show the terms on which the reinsurance arrangements have been entered into and the commissions paid or received under each transaction.

(10) Every insurer shall maintain a record setting out particulars of each and every facultative reinsurance ceded or accepted and such record shall show the name of each insurer with whom the transaction has been entered into.

(11) Every insurer shall maintain a record setting out the names of each insurer with which he has entered into reinsurance treaties from any of his offices in India, and such record shall include all the details of the terms of the treaties.

(12) (a) Every insurer shall maintain the following accounts in his ledgers, namely:

(i) Reinsurance Accepted Account;

(ii) Reinsurance Commission Paid Account;

(iii) Reinsurance Claims Payable Account;

(iv) Reinsurance Claims Paid Account;

(v) Reinsurance Ceded Account;

(vi) Reinsurance Commission Received Account;

(vii) Reinsurance Claims Recoverable Account;

(viii) Reinsurance Claims Recovered Account.

(b) An insurer shall be deemed to have complied with the provisions of clause (a), if the information required is otherwise readily available from the existing books and accounts of the insurer.

(1) The powers of search and seizure under Section 34-H of the Act shall be exercised in accordance with sub-rules (2) to (14).

(2) The Controller may, after recording his reasons for doing so authorise any officer subordinate to him not lower in rank than an Assistant Controller of Insurance (hereafter in this rule referred to as the authorised officer) for the purposes of Section 34-H of the Act:

Provided that such authorisation shall

(i) be in writing under this signature;

(ii) bear his seal, and

(iii) authorise the authorised officer to enter and search any building or place specified therein, and to exercise the powers and perform the functions under sub-section (1) of Section 34-H of the Act with such assistance of police officers or of the officers of the Central Government, or both, as may be required.

(3) Whenever any building or place authorised to be searched is closed, any person residing in or being in charge of such building or place shall on demand by the authorised officer and on production of the authority allow him free ingress thereto and afford all reasonable facilities for a search therein.

(4) If ingress into such holding or place cannot be so obtained it shall be lawful for the authorised officer executing the authority with such assistance of police officers or of officers of the Central Government or of both as may be required, to enter such building or place and search therein and in order to effect an entrance into such building or place, to break open any outer or inner door or window of any building or place, whether that of the person to be searched or of any other person, if after notification of his authority and purpose and demand of admittance duly made, he cannot otherwise obtain admittance:

Provided that, if any such building or place is an apartment in actual occupancy of a woman, who according to custom does not appear in public the authorised officer, shall, before entering such apartment, give notice to such woman that she is at liberty to withdraw and shall afford her every reasonable facility for withdrawing and may then break open the apartment and enter it.

(5) The authorised officer may require any person who is the owner, or has the immediate possession, or control, of any box, locked safe, almirah or any other receptacle situate in such building or place, to open the same and allow access to inspect or examine its contents, and where the keys thereof are not available or where such person fails to comply with any such requirement, may cause any action to be taken including the breaking open of such box, locker, safe, almirah or other receptacle which the authorised officer may deem necessary for carrying out all or any of the purposes specified in the authority issued under sub-rule (2).

(6) The authorized officer may, where it is not practicable to seize any book, account or document, serve an order on the owner or the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it except with the previous permission of the authorized officer who may take such steps as may be necessary for ensuring compliance with this sub-rule.

(7) Where any person in or about such building or place is reasonably suspected of concealing about his person any book, account or document for which search is being made, such person may also be searched by the authorized officer with such assistance as he may consider necessary. If such person is a woman, the search shall be made by another woman with a strict regard to decency.

(8) Before making a search, the authorized officer about to make it shall call upon two or more respectable inhabitants of the locality in which the building or place to be searched is situate to attend and witness the search and may issue an order in writing to them or any of them so to do.

(9) The search shall be made in the presence of the witnesses aforesaid and a list of all books, accounts and documents seized in the course of such search and of the places in which they were respectively found shall be prepared by the authorized officer and signed by such witnesses; but no person witnessing a search shall be required to attend as a witness of the search in any proceedings under the Act unless specially summoned.

(10) The occupant of the building or place searched or some person in his behalf shall be permitted to attend during the search and a copy of the list prepared under sub-rule (9) shall be delivered to such occupant or person. A copy shall also be forwarded to the Controller.

(11) When any person is searched under sub-rule (7) a list of all books, accounts and documents taken possession of shall be prepared and a copy thereof shall be delivered to such person. A copy shall also be forwarded to the Controller.

(12) The authorized officer may convey the books, accounts and other documents, if any, seized by him in course of the search made by him to the office of the Controller or to the office of the authorised officer or to any other office under the jurisdiction of the Controller.

(13) The Controller or the officer in charge of the office mentioned in sub-rule (12), as the case may be, shall take such steps as he may consider necessary for the safe custody of books, accounts and other documents conveyed to him.

(14) The authorisation of the Controller referred to in sub-rule (2) shall be in Form No. XVII.

34[(1) The representatives of insurer on Tariff Advisory Committee shall be elected as follows, namely:

(a) four members to be elected by insurers registered under the Act in the public sector in such manner that not more than one member shall represent each insurer;

(b) four members to be elected by insurers other than referred to in clause (i), registered under the Act;

(c) one member to be elected by reinsurers registered under the Act;

(d) one member to be elected by organisations exempted under Section 118 of the Act and Provident Societies under Section 65 of the Insurance Act, 1938;

35(2) For the purpose of this rule, if any dispute concerning the election of any member arises, it shall be referred to the Central Government for its decision thereon.]

36[* * *]

37[(1) The election of members shall be held in every fourth calendar year, the first election after the commencement of the Insurance (Amendment) Rules, 2004 being held before the 31st December, 2004.

(2) Every election shall be conducted by the Secretary to the Advisory Committee in accordance with the procedure specified in the regulations made by the Authority.

38[* * *]

45. 39[* * *]

40[* * *]

41[* * *]

42[* * *]

43[* * *]

44[* * *]

45[* * *]

51-A. Regions of Regional Committees. 46[* * *]

47[* * *]

The fees payable to the Tariff Advisory Committee under sub-section (1) of Section 64-UK in respect of a calendar year shall be paid before the 31st December of that year and shall be paid by means of a crossed bank draft on any Branch of the State Bank of India in Bombay City drawn in favour of the Committee.

48[53-A. Fund of the Tariff Advisory Committee and custody of its moneys. (1) The Tariff Advisory Committee shall have its own fund and all receipts of the Committee shall be carried thereto and all payments by the Committee shall be made therefrom.

(2) Subject to any regulations that may be made in this behalf, all moneys belonging to the Tariff Advisory Committee which are not immediately required by the Committee for any purpose shall be deposited with the State Bank of India.

53-B. Accounts, audit and annual report of the Tariff Advisory Committee. (1) The Tariff Advisory Committee shall cause regular accounts to be kept of all its moneys and properties in respect of the affairs of the Committee in such form as may be determined by the Central Government in consultation with the 49[Comptroller and Auditor-General of India].

(2) The annual accounts of the Committee shall be audited by the 50[Comptroller and Auditor-General of India] or by any person authorised by him in this behalf and any expenditure incurred in connection with such audit shall be payable by the Committee to the 51[Comptroller and Auditor-General of India].

(3) 52[Any person appointed by the Comptroller and Auditor-General of India] in connection with the audit of the accounts of the Committee shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General of India has in connection with the audit of Government accounts, and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other necessary documents and papers.

(4) The 53[Comptroller and Auditor-General of India] or any person appointed by him in this behalf

(a) shall communicate the results of the audit to the Committee which shall submit a copy of the audit report along with its observance to the Central Government; and

(b) shall forward a copy of the report direct to the Central Government.

(5) The Committee shall, as soon as may be, after the end of each calendar year, prepare and submit to the Central Government a report giving an account of its activities during the previous calendar year.]

Where on or after the commencement of the Insurance (Amendment) Act, 1968 (62 of 1968) all the employees of the Tariff Committee and the Regional Councils of the General Insurance Council do not become employees of the Tariff Advisory Committee under Section 64-UH of the Act, all the moneys and other assets belonging to the provident fund or superannuation fund or any other like fund referred to in sub-section (3) of Section 64-UF of the Act shall be apportioned between the Tariff Advisory Committee and trustees of the fund in the following manner, namely:

(i) the moneys and other assets of any provident fund shall be apportioned in the proportion which the total of the amounts lying to the credit of the persons becoming employees of the Tariff Advisory Committee bears to the total of the amounts lying to the credit of the persons who do not become employees of the Tariff Advisory Committee;

(ii) the moneys and other assets of any superannuation fund shall be apportioned in the proportion which the liability of the fund in respect of the persons becoming employees of the Tariff Advisory Committee bears to a similar liability in respect of persons who do not become employees of the Tariff Advisory Committee, such liability to be ascertained on such basis as may be determined by the Tariff Advisory Committee and approved by the Central Government; and

(iii) the moneys and other assets of any other like fund shall be apportioned in accordance with the principles set out in clause (i) or clause (ii), as the case may be.

Explanation. For the purposes of this rule the assets of a provident fund, superannuation fund or any other like fund shall be valued at the market rate as on the date of commencement of the Insurance (Amendment) Act, 1968 (62 of 1968).

(1) The fee for obtaining a licence to act as a Surveyor or Loss Assessor shall be Rs 250 and for renewing such licence shall be Rs 200.

(2) Any fee specified in this rule shall be paid into the Bank or where there is no office of the Bank, into the State Bank of India acting as the agent of that Bank or into any Government Treasury for credit under the central head XXI Miscellaneous Departments Fees realised under the Insurance Act, 1938 and the receipt shall be sent along with the relevant application.

An Applicant who desires to obtain or renew a licence to act as a Surveyor or Loss Assessor shall proceed as follows:

(a) the applicant shall obtain from the Controller of Insurance a form of application for a licence which shall be,

(i) in the case of an individual, whether working as a sole proprietor of a firm or not Form XVIII-AI or XVIII-BI, Form XVIII-AI shall be used when the applicant applies for a licence for the first time or for a fresh licence, while Form XVIII-BI shall be used when the applicant applies for the renewal of the licence already held by him;

(ii) in the case of a company or firm, Form XVIII-AF or Form XVIII-BF, Form XVIII-AF shall be used when the applicant applies for a licence for the first time or for a fresh licence, while Form XVIII-BF shall be used when the applicant applies for the renewal of the licence already held by him:

(b) he shall then send to the Controller of Insurance the completed application form along with the receipt showing payment of the fees specified in Rule 55;

(c) the Controller of Insurance or the officer authorised by him may, after taking all reasonable steps to satisfy himself that the application is in order, that the applicant fulfils the requirements of clause (D) of sub-section (1) of Section 64-UM of the Act and that the applicant is not disqualified from holding a licence, issue a licence to him or, as the case may be, renew the licence. The licence shall be in Form XVIII-AAI in the case of an individual and in Form XVIII-AAF in the case of a company or firm. Renewal of licence shall be in Form XVIII-BBI in the case of an individual and in Form XVIII-BBF in the case of a company or firm;

(d) no application for the renewal of a licence shall be entertained if it does not reach the Controller at least thirty days before the date on which the licence ceases to be in force.

54[56-A. Additional technical qualifications for Surveyors and Loss Assessors. The following shall be the technical qualifications for purposes of item (f) of sub-clause (i) of clause (d) of sub-section (1) of Section 64-UM of the Act, namely

(a) Fellowship or Associateship or Licenciateship held on the 26th October, 1968, or Fellowship or Associateship by examination subsequently acquired of the institute of Insurance Surveyors and Adjusters, Bombay.

(b) Fellowship or Associateship of the Royal Institute of British Architects, London, and/or a Degree or Diploma in Architecture of a recognised University or Institute secured after attending full time course or by passing examination of such University or Institute.

(c) Fellowship or Associate membership of the Institute of Chartered Accountants in England and Wales.

(d) Fellowship or Associate membership of the Institute of Chartered Accountants in Scotland.

(e) Fellowship or Associate membership of the Institute of Chartered Accountants in Ireland.

(f) Fellowship or Associate membership of the Institute of Cost and Works Accountants in the United Kingdom.

(g) A degree or diploma of a recognised Institute of Engineering secured after attending full-time course and by passing the examination of such Institute.

(h) A certificate of competency as Master of Ship or as First Class Marine Engineer issued by a recognised authority.

(i) A degree or diploma in Naval Architecture of a recognised University or Institute.

(j) A Fellow or Associate on the 26th October, 1968, or a Fellow or Associate by examination, of the Chartered Institute of Loss Adjusters, London, held after the 26th October, 1968.

(k) Any technical qualification recognised by the Government of India as equivalent or superior to the qualifications listed in items (b) and (c) of sub-clause (1) of clause (d) of sub-section (1) of Section 64-UM of the Act.]

(1) In the case of an insurer carrying on general insurance business at the commencement of the Insurance (Amendment) Act, 1968 (62 of 1968) the excess of the value of his assets over the amount of his liabilities shall be brought up to the relevant amount as defined in sub-section (1) of Section 64-VA of the Act, in four stages as specified in the following table:

(2) Where in the case of an insurer referred to in sub-rule (1) the Central Government has under the provisions of the third proviso to sub-section (1) of Section 64-VA, extended the date of 31st December, 1972, referred to in the said proviso to a subsequent date, the excess of the value of assets over the amount of the liabilities shall be brought up to the relevant amount in four stages in accordance with sub-rule (1) but the dates mentioned in column (2) of the Table in that sub-rule shall be deemed to have been altered as follows:

(a) the date against Stage I shall be extended by one-fourth of the interval between 31st December, 1972, and the extended date;

(b) the date against Stage II shall be extended by one-half of the interval between 31st December, 1972, and the extended date;

(c) the date against Stage III shall be extended by three-fourths of the interval between 31st December, 1972, and the extended date;

(d) in Stage IV, the extended date shall be substituted in place of the 31st December, 1972, mentioned against that stage:

Provided that if any such altered date against Stages I, II or III is not the last day of a calendar month, it shall be changed to the last day of the immediately preceding calendar month.

For the purposes of sub-section (1) of Section 64-VB of the Act, a risk in respect of a policy may be assumed before the premium payable in respect thereof is received:

(i) if the entire amount of the premium is guaranteed to be paid by a Banking Company before the end of the calendar month next succeeding to the month in which the risk is assumed, if the premium due is not paid by the insured before that date;

(ii) if an advance deposit is made with the insurer to the credit of the insured sufficient to cover the payment of the entire amount of the premium together with the premium, if any, due from the insured in respect of any other risk already assumed against such deposit, such deposit being agreed to be adjusted towards the premium before the end of the month next succeeding to the month in which the risk is assumed, if the premium due is not paid by the insured before that date.

(i) In respect of the categories of insurance policies mentioned hereunder the requirements of sub-section (1) of Section 64-VB shall stand relaxed to the extent and in the manner mentioned against each category of policy, subject to the conditions mentioned therein:

(a) Policies issued to Government and semi-Government bodies. The risk may be covered on such policies on the strength of an undertaking by the proposer to pay the premium within 30 days of the date of intimation of the amount of premium or within such further period as the Controller may fix in any particular case.

(b) Policies under55[Sickness Insurance, Group Personal Accident Insurance, Medical Benefits Insurance and Hospitalisation Insurance Schemes]. Premiums on such policies may be accepted in instalments provided that the instalment covering a particular period shall be received 56[within 15 days from] the date of commencement of the period.

57[(c) Fidelity Guarantee Insurance. Fidelity Guarantee Insurance policies covering Government and semi-Government employees may be issued without receipt of premium in advance if the policy is not in renewal of an existing policy and subject to the condition that the premium is paid within thirty days from the date of appointment of the person covered by the policy.]

(d) Policies covering risks where exact premium cannot be ascertained without reference to Head Office, Principal Office, etc. Where the exact premium for a risk cannot be ascertained without reference to Head Office, Principal Office or Controlling Office or to the Tariff Advisory Committee or Regional Committee or for any other reason, the risk may be assumed if there is a deposit made by or on behalf of the insured with the insurer at suitable rate not less than 2.5 per mile but the premium in such cases shall be paid or adjusted within thirty days of the commencement of risk or, where a reference is made to the Tariff Advisory Committee or a Regional Committee, within fifteen days of the date of the advice from the Tariff Committee or the Regional Committee, as the case may be, failing which the cover shall be cancelled on the expiry of the period of thirty days or fifteen days, as the case may be. Provided that in the case of policies covering Carriers' Liability, the adjustment of premium may be made after the expiry of the policy.

(e) Declaration Policies. Risk in respect of such policies may be assumed if at least the premium calculated on 75 per cent of the sum assured has been received before assumption of the risk.

(f) Policies issued on the basis of adjustable premiums. Risk in respect of policies issued on the basis of adjustable premiums such as workmen's compensation, cash in transit, etc., may be assumed on receipt of provisional premiums based on a fair estimate.

58[(g) Annual Insurances connected with aircraft hulls and other aviation risks and connected with marine hulls. Facilities for delayed payment of premium or the payment of premium by means of instalments not exceeding four in number may be allowed at the discretion of the insurer on policies covering the following risks, namely

(i) aircraft hulls,

(ii) marine hulls,

(iii) legal liability to passengers,

(iv) automatic personal accident insurance to passengers,

(v) blanket policies covering liability in excess of basic cover connected with aviation risks,

(vi) war risk insurance of air passengers and aircraft hulls,

(vii) third party and other liability risks connected with aviation risks and marine hulls risks,

(viii) S.R.C.C. risk connected with aviation risk and marine hulls risks,

provided that a clause to that effect is endorsed on the policy.

(h) Short period covers in respect of Insurance connected with aircraft hulls and other aviation risks and marine hulls. Short period covers may be granted on a held covered basis on the following risks, namely

(i) aircraft hulls,

(ii) marine hulls,

(iii) legal liability to passengers,

(iv) automatic personal accident insurance to passengers,

(v) blanket policies covering liability in excess of basic cover connected with aviation risks,

(vi) war risk insurance of air passengers and aircraft hulls,

(vii) third party and other liability risks connected with aviation risks and marine hull risks,

(viii) S.R.C.C. risk connected with aviation risk and marine hull risks,

subject to the condition that the premium or additional premium in respect of risks assumed in a calendar month shall be paid by end of the next calendar month.]

(i) Policies issued 59[for a period of more than one year]. In the case of policies issued 60[for a period of more than one year], such as Contract Performance Bonds or Guarantees, Contractors' All Risks policies, Machinery Erection policies and the like, the premium may be staggered as necessary according to custom, over the period of the cover, provided that the first equated instalment is higher than any other instalment by at least 5 per cent of the total premiums payable and each instalment is paid in advance. Where the premiums are payable by declarations, they may be paid within fifteen days from the dates of receipt of declarations.

(j) Schedule and Consequential Loss Policies. In such cases a provisional amount towards the premium shall be collected before the date of inception or renewal of risk on the basis of the previous year's premium.

(k) Marine covers other than Hulls. (i) In the case of inland shipments and transit risks, risk may be assumed under open policies in respect of seasonal crops such as tea, on the payment of a provisional premium based on a fair estimate.

(ii) In the case of exports overseas, risk may be assumed subject to the condition that the premium shall be paid within fifteen days from the date of sailing of the overseas vessel.

(iii) In the case of imports, risk may be assumed subject to the condition that the premium shall be paid within fifteen days of the receipt of declaration in India from the insurer's or insured's representative overseas:

Provided that the relaxations under sub-clauses (ii) and (iii) shall apply to marine cover notes only and not to marine policies.

(l) Policies relating to co-insurances. The premium shall be deemed to have been duly paid if paid on the full insurance to any one of the co-insurers.

61[(m) Policies of reinsurance. (i) Risk may be assumed without payment of premium in advance on insurances accepted under automatic reinsurance contracts.

(ii) In the case of facultative reinsurances accepted, risk may be assumed without payment of premium in advance if the ceding insurer, has given an undertaking to pay his share of the premium, instalment of premium, premium subject to delayed payment or, where a deposit premium or provisional premium was paid on the original policy, the adjusted premium, or, in the case of premiums subject to delayed payment, the delayed premium, as the case may be, before the end of the calendar month succeeding the month in which the premium is due under the original policy.]

62[(n) Policies of National Agriculture Insurance Scheme. The subsidy in premium due from Central Government or State Governments or Union Territories shall be deemed to have been duly paid, if paid in full, before the settlement of claim.

63[Any person nominated as a member of the Consultative Committee constituted under sub-section (1) of Section 110-G of the Act (hereafter referred to in Rules 61 to 65 as the Committee) shall hold office for a period not exceeding three years or such further period not exceeding three years at a time as the Central Government may specify.]

64[(1) Any member of the Committee may resign his membership of the Committee by notice in writing addressed to the Secretary to the Government of India, Ministry of Finance (Department of Revenue and Insurance) to that effect and such resignation shall take effect from the date on which it is accepted by the Central Government or on the expiry of a period of thirty days from the date of its receipt by the Central Government whichever is earlier.]

(2) Casual vacancies in the Committee whether caused by resignation, death or otherwise, shall be filled by nomination by the Central Government.

The Central Government may appoint a Secretary to the Committee for the purpose of performing such functions as are assigned to him by these rules or as may be assigned to him by the Chairman of the Committee.

Procedure for the conduct of business of the Committee shall be as follows, namely:

(1) Meetings of the Committee. Meetings of the Committee may be held at such places and at such times as may be decided by the Chairman of the Committee.

(2) Notice of meeting. Notice of any meeting of the Committee shall be sent by the Secretary of the Committee to every member at least seven days before the date of the meeting.

(3) Quorum for the meeting. Two members in addition to the Chairman shall constitute quorum for a meeting.

(4) Adjournment of a meeting. If the requisite quorum is not available within half an hour of the appointed time for a meeting, the Chairman may adjourn the meeting to such date and time as he may decide.

(5) Chairman to preside at meeting. The Chairman shall preside at all meetings of the Committee.

(6) Record of deliberations. The results of the deliberations of every meeting shall be recorded in the form of a note explaining in brief, the matters referred to the Committee and the recommendations thereon of each of the members (other than the Chairman) present. Such record shall be signed by the Chairman and the members present.

(7) Circulation. Any matter for consideration of the Committee may at the discretion of the Chairman be referred to the members for suggestions by circulation as an alternative to convening a meeting for the purpose.

(1) Every non-official member shall be entitled for attending meetings of the Committee to travelling and other allowances as under:

(i) travelling allowance for journeys from the usual place of residence or the place of commencement of the journey to the place of the meeting and the return journey to the place of commencement of the journey or the usual place of residence, whichever is shorter in each case, at the maximum rate for the time being admissible to a Central Government servant of the first grade. Subject to the foregoing, the member shall be entitled to travel either by airconditioned class or by air;

(ii) daily allowance at the maximum rate for the time being admissible to Central Government servants of the first grade at the place of the meeting for the days on which the meeting is held and in respect of one day previous to the commencement of the meeting and one day after the meeting if the member actually arrives on or before and leaves on or after the respective days.

(2) The travelling allowances and daily allowances of an official member shall be governed by the rules for the time being applicable to him for journeys performed on official duty.

A non-official member shall be entitled to a fee for attending meetings of the Committee of Rs 100 for each day of the meeting.]

SCHEDULES

(See Rule 5)

RESERVE BANK OF INDIA

To

The Manager,

Reserve Bank of India

. . . . . . . . . . . . . . . . . . . .London20.

This is to inform you that the. . . . . . . . . . . . . . have this day deposited the undermentioned securities.

Manager,

(See Rule 5)

RESERVE BANK OF INDIA

LT.

No.

ST

. . . . . . . 20 .

Certified that the. . . . . . . . . . . . . . . . . . . . . have made the undernoted deposits in terms of the Insurance Act, 1938.

Manager.

Grand Total of Columns 2 and 5 Rs . . . . . . . . . . . . . . .

(See Rule 5)

No. . . . . . . . . . . . . S.

RESERVE BANK OF INDIA

. . . . . . . . . . 20 .

Certified that the above agrees with the entries in the books maintained by the Bank.

To

The Controller of Insurance, Simla.

Manager.

(See Rule 10)

[See Rule No. 10(c)(1)]

[See Section 28-A(1)]

(Please see the note appended to the form)

(1) Government securities and other securities charged on the revenues of the Central Government or of the Government of a Part A State or guaranteed fully as regards principal and interest by the Central Government or the Government of any Part A State and securities issued or guaranteed fully as regards principal and interest by the Government of a Part B State and specified as approved securities by the Central Government.

(2) Approved securities other than those referred to in item (1) above

[See Section 2(3)]

(3) Securities guaranteed fully as regards principal and interest by a Provincial Government in Pakistan or charged on the revenues of any part of that Dominion and debentures of other securities for money issued by or on behalf of the Port of Karachi and satisfying the requirements of Rule 10-A of the Insurance Rules.

(4) Securities issued by the Government of any country outside India.

(5) Debentures or other securities for money issued with the permission of the State Government by any Municipality in a State.

[See Section 27-A(1)(c)]

(6) Debentures or other securities for money issued by any authority constituted under any housing or building scheme approved by the Central Government or a State Government or by any authority or body constituted by any Central Act or Act of a State Legislature.

[See Section 27-A(1)(d)]

(7) First Mortgages on immovable property situated in India under any housing or building scheme of the insurer approved by the Central or a State Government.

[See Section 27-A(1)(e)]

*To be stated if outstanding for more than one year.

(8) Debentures secured by a first charge on any immovable property, plant or equipment, of any company which has paid interest in full for five years immediately preceding or for at least five out of the six or seven years immediately preceding on such or similar debentures issued by the company.

[See Section 27-A(1)(f)]

(9) Debentures secured by a first charge on any immovable property, plant or equipment of any company where, either the book value or the market value, whichever is less, of such property, plant or equipment is more than three times the value of the debentures.

[See Section 27-A(1)(g)]

(10) First Debentures secured by a floating charge on all the assets of any Company which has paid dividends on its ordinary shares for the five years immediately preceding or for at least five years out of six or seven years immediately preceding.

[See Section 27-A(1)(h)]

(11) Preference shares of any company which has paid dividends on its ordinary shares for the five years immediately preceding or for at least five out of the six or seven years immediately preceding.

[See Section 27-A(1)(i)]

(12) Preference shares of any company on which dividends have been paid for the five years immediately preceding or for at least five out of six or seven years immediately preceding and which have priority in payment over all the ordinary shares of the company in winding up.

[See Section 27-A(1)(j)]

(13) Shares of any company guaranteed by another company such other company having paid dividends on its ordinary shares for the five years immediately preceding or for at least five out of the six or seven years immediately preceding.

[See Section 27-A(1)(k)]

(14) Shares of the company on which dividends of not less than four per cent including bonus have been paid for seven years immediately preceding or for at least seven out of the eight or nine years immediately preceding.

[See Section 27-A(1)(l)]

(15) First Mortgages on immovable property situated in the States or in any country where the insurance is transacting insurance business.

[See Section 27-A(1)(m)]

(16) Immovable Property situated in the States or in any country where the Insurer is transacting insurance business.

[See Section 27-A(1)(n)]

(17) Loans on life insurance policies within their surrender value issued by the insurer or by another insurer whose business he has taken over and in respect of which business he has assumed liability.

[See Section 27-A(1)(o)]

(18) Life interests and Loans on Life interests.

[See Section 27-A(1)(o) and (p)]

(19) Fixed deposits with Banks included in the Second Schedule to the Reserve Bank of India Act, 1934, or Co-operative Societies registered under the Indian Co-operative Societies Act, 1912, or any other law for the time being in force the primary object of which is to finance Co-operative Societies similarly registered.

[See Section 27-A(1)(q)]

(20) Shares and Debentures of Co-operative Societies registered under the Indian Co-operative Societies Act, 1912, or any other law for the time being in force.

[See Section 27-A(1)(r)]

(21) Other investments notified under clause (s) of sub-section (1) of Section 27-A.

(2) Particulars of investments.

I hereby certify that the particulars furnished in the return are true and complete to my knowledge.

Date:

Principal Officer.

NOTES TO FORM IV-A

I. (a) Market value of securities, debentures, shares, etc., should be ascertained from published quotations. Where published quotations are not available, it should be stated in the remarks column how the market values have been arrived at.

(b) If accrued interest has been added to the market value it should be stated in the remarks column.

(c) In the case of shares and debentures of Companies, the location of the Companies should also be stated.

[(d) In the case of mortgages of property and properties owned by the insurer, location of each property should be separately stated.

(e) In case of investments made on and after the 19th January, 1950, the date of purchase should be given.

II. In respect of investments in Part A of the statement, investments which were approved at the time of the last statement but ceased to be so subsequently should be distinctly marked by double asterisks.

III. Investment held in deposit under Section 7 or 98 of the Act should also be included in the return.]

65[Form IV-AA

[See Rule 10-C(3)]

Return of investments of the assets of the (insurer) as at 20[See Section 28-B(1) of the Act].

(Please see the notes appended to the form)

(1) Government securities and other securities charged on the revenues of the Central Government or of a State Government or guaranteed fully as regards principal and interest by the Central Government or a State Government and specified as approved securities by the Central Government.

(2) Approved securities other than those referred to in item (1) above

[See Section 2(3) of the Act]

(3) Securities issued by the Government of any country outside India.

(4) Debentures or other securities for money issued with the permission of the State Government by any Municipality in a State.

[See Section 27-B(1)(a) of the Act]

(5) Debentures or other securities for money issued by any authority constituted under any housing scheme approved by the Central Government or a State Government or by any authority or body constituted by any Central Act or Act of a Legislature.

[See Section 27-B(1)(a) of the Act]

(6) First Mortgages on Immovable Property situated in India under any housing or building Scheme of the insurer approved by the Central or a State Government.

[See Section 27-B(1)(a) of the Act]

*If outstanding for more than one year the fact should also be stated.

(7) Immovable Property situated in India or in any country where the Insurer is carrying on insurance business.

[See Section 27-B(1)(a) of the Act]

(8) Fixed deposits with Banks included in the Second Schedule to the Reserve Bank of India Act, 1934, or co-operative societies registered under the Co-operative Societies Act, 1912, or any other law for the time being in force the primary object of which is to finance co-operative societies similarly registered.

[See Section 27-B(1)(a) of the Act]

(9) Debentures and Shares of Co-operative Societies registered under the Co-operative Societies Act, 1912, or any other law for the time being in force.

[See Section 27-B(1)(a) of the Act]

(10) Debentures secured by a first charge on any immovable property, plant or equipment, of any company which has paid interest in full for three years immediately preceding or for at least three out of four or five years immediately preceding on such or similar debentures issued by the company.

[See Section 27-B(1)(b) of the Act]

(11) Debentures secured by a first charge on any immovable property, plant or equipment of any company where, either the book value or the market value, whichever is less, of such property, plant or equipment is more than twice the value of the debentures.

[See Section 27-B(1)(c) of the Act]

(12) First debentures secured by a floating charge on all its assets or by a fixed charge on fixed assets and floating charge on all other assets of any company which has paid dividends on its equity shares for the three years immediately preceding or for at least three out of the four or five years immediately preceding the date of the investment.

[See Section 27-B(1)(d) of the Act]

(13) Preference shares of any company which has paid dividends on its equity shares for the three years immediately preceding or for at least three out of four or five years immediately preceding.

[See Section 27-B(1)(e) of the Act]

(14) Preference shares of any company on which dividends have been paid for three years immediately preceding or for at least three out of four or five years immediately preceding and which have priority in payment over all the equity shares of the company in winding up.

[See Section 27-B(1)(f) of the Act]

(15) Shares of any company which have been guaranteed by another company such other company having paid dividends on its equity shares for the three years immediately preceding or for at least three out of the four or five years immediately preceding.

[See Section 27-B(1)(g) of the Act]

(16) Shares of any company on which dividends of not less than four per cent including bonus have been paid for the three years immediately preceding or for at least three out of the four or five years immediately preceding.

[See Section 27-B(1)(h) of the Act]

(17) First Mortgages on immovable property situated in India or in any other country where the insurer is carrying on insurance business.

[See Section 27-B(1)(i) of the Act]

(18) Other investments notified under clause (j) of sub-section (1) of Section 27-B of the Act.

(1) 25 per cent of the assets referred to in sub-section (3) of Section 27-B of the Act estimated as at the date of this return.

(2) Particulars of investments.

I hereby certify that the particulars furnished in the return are true and complete to my knowledge.

Date:

Principal Officer.

I. (a) Market value of securities, debentures, shares, etc. should be ascertained from published quotations. Where published quotations are not available, it should be stated in the remarks column how the market values have been arrived at.

(b) If accrued interest has been added to the market value, it should be so stated in the remarks column.

(c) In the case of shares and debentures of Companies, the location of the Companies should also be stated.

(d) In the case of mortgages of property, and properties owned by the insurer, location of each property should be separately stated.

(e) In the case of investments made on and after the 31st December, 1968, the date of purchase should be given.

II. In respect of investments in Part A of the statement, investments which were approved at the time of the last statement, but ceased to be so subsequently should be distinctly marked by double asterisks.

III. Investments held in deposit under Section 7 of the Act should also be included in the return.

66[Form IV-AAA

[See Rule 10-C(I)]

[See Section 28-A(1)]

(Please see the Notes appended to the Form)

(1) Government securities and other securities charged on the revenues of the Central Government or of the Government of a State or guaranteed fully as regards principal and interest by the Central Government or the Government of any State.

(2) Approved securities other than those referred to in item (1) above.

[See Section 2(3)]

(3) Debentures or other securities for money issued with the permission of the State Government by the Municipality in a State.

(4) Debentures secured by a first charge on any immovable property, plant or equipment of any company which has paid interest in full for the five years immediately preceding or for at least five years out of the six or seven years immediately preceding on such or similar debentures issued by it.

(5)(a) Debentures secured by a first charge on any immovable property, plant or equipment of any company where, either the book value or the market value, whichever is less, of such property, plant or equipment is more than three times the value of such debentures.

(b) Debentures convertible into shares of a company which has paid on its shares dividends of not less than four per cent including bonus for the five years immediately preceding or for at least five years out of the seven years immediately preceding.

(6) Cumulative Preference Shares of any company which has paid dividends on its equity shares for the five years immediately preceding or for at least five years out of the six or seven years immediately preceding, provided such preference shares have priority in payment over all the equity shares of the company in winding up.

(7) Cumulative Preference Shares of any company on which dividends have been paid for the five years immediately preceding or for at least five years out of the six or seven years immediately preceding and which have priority in payment over all the equity shares of the company in winding up.

(8) Shares of any company which have been guaranteed by another company, such other company having paid dividends on its equity shares for the five years immediately preceding or for at least five years out of the six or seven years immediately preceding in each case.

(9) Shares of any company on which dividends of not less than four per cent including bonus have been paid for the five years immediately preceding or for at least five years out of the seven years immediately preceding.

(10) Immovable property situated in India or in any other country where the Corporation is carrying on insurance business.

(11) First Mortgages on immovable property situated in India or in any other country where the Corporation is carrying on insurance business.

(12) Loans to any authority or any co-operative society registered under the Co-operative Societies Act, 1912, or under any other law for the time being in force, operating a housing or building scheme in India in any case where the repayment of principal and interest is guaranteed by the Central Government or a State Government.

(13) First mortgages on immovable property situated in India under any housing or building scheme of a public limited company or an establishment in public sector or a co-operative society registered under the Co-operative Societies Act, 1912, or under any other law for the time being in force.

(14) Loans on first mortgages of immovable property under any housing or building scheme of the Corporation for the benefit of the policy holders.

(15) Loans on life interests.

(16) Loans on policies of life insurance within their surrender values issued by the Corporation or by an insurer, the assets and liabilities of whose controlled business have been transferred to and vested in the Corporation or loans to employees of the Corporation for the purpose of purchasing or constructing houses or for the purpose of purchasing motorcycles, motor cars or any other conveyances in accordance with any scheme approved by the Corporation.

(17) Life Interest.

(18) Deposits with banks included for the time being in the Second Schedule to the Reserve Bank of India Act, 1934, or with co-operative societies registered under the Co-operative Societies Act, 1912, or under any other law for the time being in force, the primary object of which is to finance other co-operative societies similarly registered.

(19) Debentures of, or shares in co-operative societies registered under the Co-operative Societies Act, 1912, or under any other law for the time being in force.

(20) Other investments as the Central Government may, by notification in the Official Gazette, declare to be approved investments under sub-section (1) of Section 27-A.

(2) Particulars of investments

I hereby certify that

(a) the particulars furnished in the return are true and complete to my knowledge;

(b) the various investments have been properly classified in the appropriate Parts of the return;

(c) all the investments conform and have at all times conformed to the provisions of the various relevant sub-sections of Section 27-A of the Insurance Act, 1938, in its application to the Life Insurance Corporation of India; and

(d) prior permission of the Central Government has been obtained in regard to all the investments in private limited companies that have been shown in this return.

Date:

Managing Director

NOTES TO FORM IV-AAA

I. In respect of investments in Part A of the return, particulars of all investments which were scheduled at the time of the last return but ceased to be so subsequently should be given separately.

II. Figures of investments in respect of Capital Redemption (including Annuity Certain) Insurance Business should be given separately.

III. Figures of investments outside India should be given separately.]

[See Rule 10(c)(2)]

Return showing all the changes that occurred in the investments of the Controlled Fund of . . . . . . . . . . . . . . . . . . . . Insurance Company Ltd., during the quarter ending. . . . . . . . . . . . 20.

[See Section 28-A(2)]

(1) Purchases during the quarter ending 20

(2) Sales during the quarter ending20.

*To be given in the case of investments made after 19th January, 1950. If made before the said date it may be so stated in the columns. Also see Note 1(a) to 1(d) in Form IV-A.

67[Form IV-BB

[See Rule 10-C(4)]

Return showing all the changes that occurred in the investments of the assets of the . . . . . . . . . . . (insurer), during the quarter ending . . . . . . . . . . . . . . . . . . 20 .

[See Section 28-B(2) of the Act]

(2) Purchases and other additions during the quarter ending, . . . . . . . 20 .

(2) Sales and other deductions during the quarter ending . . . . . .20 .

*To be given in the case of investments made after 31st December, 1968. If made before the said date it may be so stated in the columns. Also see Note 1(a) to 1(d) in Form IV-AA.]

68[Form IV-BBB

[See Rule 10-C(2)]

[See Section 28-A(2)]

(Please see the Notes appended to the Form)

(1) Purchases or additions during the half-year ending20.

(2) Sales or deductions during the half-year ending20

NOTES TO FORM IV-BBB

I. Particulars relating to Scheduled and Non-Scheduled investments should be shown separately.

II. Figures of investments in respect of Capital Redemption (including Annuity Certain) Insurance Business should be given separately.

III. Figures of investments outside India should be given separately.]

[See Rule 14(7)]

Insurance Company, Limited.

I . . . . . . . . . . . . . . . . . of . . . . . . . . . . . . . . . . . . . . . . . . in the District of . . . . . . . . . . . . . . . . . . . . . . . . . . . . .being a holder of policy/policies bearing the number/numbers . . . . . . . . . . . . . . issued by the . . . . . . . . . . . . . . . . . Insurance Company Limited hereby appoint . . . . . . . . . . . . . . . of . . . . . . . . . . . . . . .who is also a holder of policy/policies bearing the number/numbers . . . . . . . . . . . . . . . issued by the above-mentioned company or in case the said policyholder fails to attend such meeting I appoint . . . . . . . . . . . . . . of . . . . . . . . . . . . . . . . . . who is also a holder of policy/policies bearing the number/numbers . . . . . . . . . . . . . . . issued by the above-mentioned company* as my proxy to vote for me and on my behalf at the meeting of the company to be held for the election of policy holders, directors on the . . . . . . . . . . . . . . . . . day of . . . . . . . . . . . . . . . . . and at any adjournment thereof.

Signed this . . . . . . . . . . day of . . . . . . . . . . . . . . . . . .

Signature.

(See Rule 16-A of the Insurance Rules, 1939)

To

The Controller of Insurance,

Dear Sir,

I request that a licence to act as an insurance agent may be granted to me,

*2. I hereby declare that

(i) I have not been found to be of unsound mind by a court of competent jurisdiction;

(ii) I have not been found guilty of criminal misappropriation or criminal breach of trust or cheating or forgery or an abetment of or attempt to commit any such offence by a court of competent jurisdiction; and

(iii) I have not been found guilty of or to have knowingly participated in or connived at any fraud, dishonesty or misrepresentation against an insurer or an insured in the course of any judicial proceeding relating to any policy of insurance or the winding up of an insurance company or in the course of an investigation of the affairs of an insurer; and

3. I also declare that the particulars given below are true and that the licence for which I hereby apply will be used only by myself for soliciting or procuring insurance business.

1. The attention of the applicant is drawn to Section 104 of the Insurance Act, 1938, which provides that whoever in any document required for the purposes of any of the provisions of that Act, wilfully makes a statement false in any material particular, knowing it to be false, shall be punishable with imprisonment for a term which may extend to three years, or with fine which may extend to one thousand rupees, or with both.

2. A licence can be granted to an individual only and not to a firm or corporate or unincorporate body.

3. An individual can apply for only one licence which will entitle him to solicit or procure insurance business of any class and to act as an insurance agent for any insurer.

4. The application should be filled in, as far as possible, in English language.

5. Any correction or alteration made in any answer to the questions in the application should be initialled by the applicant.

6. An applicant must be at least 18 years of age on the date of submission of the application. In the case of an applicant declaring his age as 18 years, the exact date of birth should be given and in all other cases, either date of birth or failing that the year of birth should be stated against Item 4 of the application. If required the applicant shall furnish proof of age.

7. Payment in cash or by money order, cheque, postal order, postage stamp or Bank draft is not accepted and will be returned at applicant's cost.

8. No acknowledgment of this application will be sent. If one is required, the application should be sent by registered post (acknowledgment due).

(See Rule 16-A of the Insurance Rules, 1939)

(In block letters)

Name of Insurance agentMrs*

Miss*

Full address . . . . . . . . . . .

To

The Controller of Insurance,

Simla.

Licence No._______________Date of expiry____________

Dear Sir,

I request that the above licence may be renewed for a further period of three years.

*2. I declare that since the date of my last application for a licence

(i) I have not been found to be of unsound mind by a court of competent jurisdiction;

(ii) I have not been found guilty of criminal misappropriation or criminal breach of trust of cheating or forgery or an abetment of or attempt to commit any such offence by a court of competent jurisdiction;

(iii) I have not been found guilty of or to have knowingly participated in or connived at any fraud, dishonesty or misrepresentation against an insurer or an insured in the course of any judicial proceeding relating to any policy of insurance of the winding up of an insurance company or in the course of an investigation of the affairs of an insurer; and

(iv) my licence has not been cancelled at any time by the Controller of Insurance.

5. I also declare that the facts stated herein are true and that the licence for which I hereby apply will be used only by myself for soliciting or procuring insurance business.

1. The attention of the applicant is drawn to Section 104 of the Insurance Act, 1938, which provides that whoever in any document required for the purposes of any of the provisions of that Act, wilfully makes a statement false in any material particular, knowing it to be false, shall be punishable with imprisonment for a term which may extend to three years, or with fine which may extend to one thousand rupees, or with both.

2. The name and the licence No. given in the application are identical with those shown in the last licence held. If there is any subsequent change in the name, the reasons for the same should be stated furnishing documentary evidence for the same.

3. Any correction or alteration made in the application should be initialled by the applicant.

4. The application should be filled in as far as possible in the English language.

5. The application should reach the Controller of Insurance before the expiry of the last licence held by the applicant but not more than three months before such expiry and Government of India Insurance Stamps for Rs 15 should be affixed to it. If the application does not reach the Controller of Insurance at least 30 days before the date on which the last licence ceases to be in force, Government of India Insurance Stamp to the value of Rs 7 should be affixed to the application by way of penalty. In this connection please also refer to the provisos to Rule 16-A of the Insurance Rules, 1939.

6. Payment in cash or by money order, cheque, postal order, postage stamp or Bank draft is not accepted and will be returned at applicant's cost.

7. No acknowledgment of this application will be sent. If one is required, the application should be sent by registered post (acknowledgment due).

Licence NO.___________

(See Rule 16-A of the Insurance Rules, 1939)

To be filledMr.

in by the applicantMrs

in Block Letters Miss

Address______________________________________________

_____________________________________________________

having paid the prescribed fee and having made the necessary declaration is hereby authorised to act as an Insurance Agent for three years fromSimla, dated the,20.

Signature of Licence holder__________________________Controller of Insurance.

This licence is not valid unless it bears a facsimile of the signature of the Controller of Insurance and the initials of a person authorised by him in this behalf and the signature of the licence holder. The latter should put his signature as soon as the licence is received.

I. If it is desired to renew this licence for a further period, the procedure laid down in Rules 16 and 16-A of the Insurance Rules, 1939, shall be followed, and an application for renewal should reach the Controller of Insurance before the licence expires. In this connection attention is also invited to the provisos to Rule 16-A of the Insurance Rules, 1939.

2. This licence authorises the licence holder to act as an agent for any registered insurer and for any class of insurance business, and therefore no identifying mark or note of any description by which the identity of an insurer might be established should be placed on the licence.

3. No correction in this licence will be valid unless initialled by the Controller of Insurance or a person authorised by him in this behalf.

(See Rule 13-A of the Insurance Rules, 1939)

To

The Controller of Insurance,

Simla,

Dear Sir,

It is requested that a licence to act as an INSURANCE AGENT may be granted to our Firm/Company.

2. *It is hereby declared that

(i) any partner of our Firm/any Director of our Company has not been found to be of unsound mind by a court of competent jurisdiction;

(ii) any partner of our Firm/any Director of our Company has not been found guilty of criminal misappropriation or criminal breach of trust, or cheating or forgery, or an abetment of or attempt to commit any such offence by a court of competent jurisdiction;

(iii) any partner of our Firm/any Director of our Company has not been found guilty of or to have knowingly participated in or connived at any fraud, dishonesty or misrepresentation against an insurer or an insured in the course of any judicial proceedings relating to any policy of insurance or the winding up of an insurance company in the course of an investigation of the affairs of an insurer; and

(iv) any partner of our Firm/any Director of our Company is not a minor.

3. *It is also declared that the particulars given below are true and that the licence for which our Firm/Company apply will be used only by our Firm/Company for soliciting or procuring general Insurance business.

Name of place . . . . . . . . . . . . . . . . .

Dated the . . . . . . . . . . . . . . . . . . . . ., 20.

Yours faithfully,

Signature of applicant.

*Strike out portions not required.

1. The attention of the applicant is drawn to Section 104 of the Insurance Act, 1938, which provides that whoever in any document required for the purposes of any of the provisions of that Act, wilfully makes a statement false in any material particular, knowing it to be false, shall be punishable with imprisonment for a term which may extend to three years, or with fine which may extend to one thousand rupees, or with both.

2. A licence can be granted to a firm or company registered under Section 42-A of the Act, which held a certificate to act as a Principal Agent immediately before the 1st August, 1957.

3. A firm or company registered under Section 42-A of the Act, which held a certificate to act as a Principal Agent immediately before the 1st August, 1957, can apply for only one licence which will entitle it to solicit or procure any class of general insurance business and to act as an insurance agent for any insurer.

4. The application should be filled in, as far as possible, in the English language.

5. Any correction or alteration made in any answer to the questions in the application should be initialled by the applicant.

6. Payment in CASH OR BY MONEY ORDER, CHEQUE, POSTAL ORDER, POSTAGE STAMP OR BANK DRAFT is not accepted and will be returned at applicant's cost.

7. No acknowledgment of this application will be sent. If one is required the application should be sent by registered post (acknowledgment due).

(See Rule 16-A of the Insurance Rules, 1939)

From

Name of applicant . . . . . . . . . . . . . . . .

(In Block Letters)

Full address . . . . . . . . . . . . . . . . . .

(In Block Letters)

To

The Controller of Insurance,

Simla.

Licence No. . . . . . . . . .

Date of expiry . . . . . . . .

Dear Sir,

It is requested that the above licence may be renewed for a further period of three years.

2. *It is hereby declared that

(i) any partner of our Firm/any Director of our Company has not been found to be of unsound mind by a court of competent jurisdiction;

(ii) any partner of our Firm/any Director of our Company has not been found guilty of criminal misappropriation or criminal breach of trust, or cheating or forgery, or an abetment of or attempt to commit any such offence by a court of competent jurisdiction;

(iii) any partner of our Firm/any Director of our Company has not been found guilty of or to have knowingly participated in or connived at any fraud, dishonesty or misrepresentation against an insurer or an insured in the course of any judicial proceeding relating to any policy of insurance or the winding up of an insurance company or in the course of an investigation of the affairs of an insurer; and

(iv) any partner of our Firm/any Director of our Company is not a minor.

3. *It is also declared that the particulars given above are true and that the licence for which our Firm/Company apply will be used only by our Firm/Company for soliciting or procuring general insurance business.

Yours faithfully,

Dated the . . . . . . . . . . . . . . . . ., 20 .

*Strike out portions not required.

1. The attention of the applicant is drawn to Section 104 of the Insurance Act, 1938, which provides that whoever in any document required for the purposes of any of the provisions of that Act, wilfully makes a statement false in any material particular, knowing it to be false, shall be punishable with imprisonment for a term which may extend to three years, or with fine which may extend to one thousand rupees, or with both.

2. The name and the licence number given in the application should be identical with those shown in the last licence held. If there is any subsequent change in the name, the reasons for the same should be stated furnishing documentary evidence for the same.

3. Any correction or alteration made in the application should be initialled by the applicant.

4. The application should be filled in, as far as possible, in the English language.

5. The application should reach the Controller of Insurance before the expiry of the last licence held by the applicant but not more than three months before such expiry and Government of India Insurance stamp for Rs 15 should be affixed to it. If the application does not reach the Controller of Insurance at least 30 days before the date on which the last licence ceases to be in force, Government of India Insurance stamp to the value of Rs 7 should be affixed to the application by way of penalty. In this connection please also refer to the provisos to Rule 16-A of the Insurance Rules, 1939.

6. Payment in CASH OR BY MONEY ORDER, CHEQUE, POSTAL ORDER, POSTAGE OR BANK DRAFT is not accepted and will be returned at applicant's cost.

7. No acknowledgment of this application will be sent. If one is required the application should be sent by registered post (acknowledgment due).

Licence No. . . . . . . . . . . . .

(See Rule 16-A of the Insurance Rules, 1939)

To be filled in by the applicant

Name . . . . . . . . . . . . . . . . . Address . . . . . . . . . . . . . . . . . having paid the prescribed fee and having made the necessary declaration is hereby authorised to act as an Insurance Agent for three years from . . . . . . . . . . . . . . . . . . . . . .

Simla, dated . . . . . . . . . . . . . . . . . 20 .

Controller of Insurance.

Signature of licence holder . . . . . . . . . . . . . . . .

The licence is not valid unless it bears a facsimile of the signature of the Controller of Insurance and the initials of a person authorised by him in this behalf and the signature of the licence holder. The latter should put his signature as soon as the licence is received.

____________________________________________________________________________

1. If it is desired to renew this licence for a further period, the procedure laid down in Rules 16 and 16-A of the Insurance Rules, 1939, shall be followed, and an application for renewal should reach the Controller of Insurance before the licence expires. In this connection attention is also invited to the provisos to Rule 16-A of the Insurance Rules, 1939.

2. This licence authorises the licence holder to act as an agent for registered insurer and for any class of general insurance business, and therefore no identifying mark or note of any description by which the identity of an insurer might be established should be placed on the licence.

3. No correction in this licence will be valid unless initialled by the Controller of Insurance or a person authorised by him in this behalf.

69[Form V-S

(See Rule 16-A of the Insurance Rules, 1939)

To

The Controller of Insurance,

Simla.

Dear Sir,

It is requested that a licence to act as an Insurance Agent may be granted to our Co-operative Society/Panchayat, particulars given below:

2. It is hereby declared that

*Co-operative Society*registered

(i) Our has been under the**.

Panchayatincorporated

*(Please see footnotes also)**

Act . . . . . . . . . . . . . and is competent to act as an insurance agent vide Section . . . . . . . . . . . . . . of the above Act;

(ii) the Society/Panchayat has also been authorised to act as an insurance agent under its by-laws, rules and regulations (vide rules/by-law . . . . . . .);

(iii) the particulars given above are true and that the licence for which our *Co-operative Society/Panchayat apply will be used only by our *Co-operative Society/Panchayat for soliciting or procuring insurance business; and

(iv) the undersigned has been duly authorised to sign this application.

*Strike out portions not required.

**Here mention the name of the Central/State Act, under which the institution is registered or incorporated.

1. The attention of the applicant is drawn to Section 104 of the Insurance Act, 1938, which provides that whoever in any document required for the purposes of any of the provisions of that Act, wilfully makes a statement false in any material particular, knowing it to be false, shall be punishable with imprisonment for a term which may extend to three years or with fine which may extend to one thousand rupees, or with both.

2. A licence can be granted to a Co-operative Society/Panchayat registered or incorporated under any Central or State Act.

3. A copy of the by-laws, Rules or Regulations of the applicant certified by its President or Chairman must accompany this application.

4. The application should be filled in, as far as possible, in English language.

5. Any correction or alteration made in any answer to the questions in the application should be initialled by the applicant.

6. Payment in CASH OR BY MONEY ORDER, CHEQUE, POSTAL ORDER, POSTAGE STAMP OR BANK DRAFT is not accepted and will be returned at applicant's cost.

7. No acknowledgment of this application will be sent. If one is required the application should be sent by registered post (acknowledgment due).

(See Rule 16-A of the Insurance Rules, 1939)

From

Name of applicant . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . .

(In Block Letters)

Full address . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . .

(In Block Letters)

To

The Controller of Insurance,

Simla

Licence No. . . . . . . . . . . . . . . . . .

Date of expiry . . . . . . . . . . . . . . .

Dear Sir,

It is requested that the above licence may be renewed for a further period of three years.

2. *It is hereby declared that

*(Please see footnote also.)

(i) our *Co-operative Society/Panchayat has been *registered/incorporated under the**. . . . . . . . . . . Act, . . . . . . . . . . . . . and is competent to act as an insurance agent vide Section. . . . . . . . . . . of the above Act;

(ii) the Society/Panchayat has also been authorised to act as an insurance agent under its By-laws, Rules and Regulations (vide Rule/By-law. . .);

(iii) the particulars given above are true and that the licence for which our *Co-operative Society/Panchayat apply will be used only by our Co-operative Society/Panchayat for soliciting or procuring insurance business; and

(iv) the undersigned has been duly authorised to sign this application.

*Strike out portions not required.

**Here mention the name of the Central/State Act under which the institution is registered or incorporated.

1. The attention of the applicant is drawn to Section 104 of the Insurance Act, 1938, which provides that whoever in any document required for the purposes of any of the provisions of that Act, wilfully makes a statement false in any material particular, knowing it to be false, shall be punishable with imprisonment for a term which may extend to three years, or with fine which may extend to one thousand rupees, or with both.

2. The name and the licence number given in the application should be identical with those shown in the last licence held. If there is any subsequent change in the name, the reasons for the same should be stated furnishing documentary evidence for the same.

3. Any correction or alteration made in the application should be initialled by the applicant.

4. The application should be filled in, as far as possible, in the English language.

5. The application should reach the Controller of Insurance before the expiry of the last licence held by the applicant but not more than three months before such expiry and Government of India Insurance stamp for Rs 15 should be affixed to it. If the application does not reach the Controller of Insurance at least 30 days before the date on which the last licence ceases to be in force, Government of India Insurance Stamp to the value of Rs 7 should be affixed to the application by way of penalty. In this connection also refer to the provisos to Rule 16-A of the Insurance Rules, 1939.

6. Payment in CASH OR BY MONEY ORDER, CHEQUE, POSTAL ORDER, POSTAGE STAMP OR BANK DRAFT is not accepted and will be returned at applicant's cost.

7. No acknowledgment of this application will be sent. If one is required the application should be sent by registered post (acknowledgment due).

Licence No. . . . . . . . . . . .

(See Rule 16-A of the Insurance Rules, 1939)

NAME . . . . . . . . . . . . . . . . .

ADDRESS . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . .

(To be filled in by the applicant)

(See notes)

having paid the prescribed fee and having made the necessary declaration is hereby authorised to act as an Insurance Agent for three years fromSimla, dated the, 20.

Controller of Insurance

Signature and seal of Licence holder . . . . . . . .

This licence is not valid unless it bears a facsimile of the signature of the Controller of Insurance and the initials of a person authorised by him in this behalf and the signature of the licence holder. The latter should put his signature and seal as soon as the licence is received.

1. If it is desired to renew this licence for a further period, the procedure laid down in Rules 16 and 16-A of the Insurance Rules, 1939, shall be followed and an application for renewal should reach the Controller of Insurance before the licence expires. In this connection, attention is also invited to the provisos to Rule 16-A of the Insurance Rules, 1939.

2. No correction in this licence will be valid unless initialled by the Controller of Insurance or a person authorised by him in this behalf.]

70[Form V-SS

(See Rule 16-A of the Insurance Rules, 1939)

To

The Controller of Insurance,

Simla.

Dear Sir,

It is requested that a licence to act as an INSURANCE AGENT may be granted to our Society, particulars given below

11. It is hereby declared that

(i) Our Society has been *registered/incorporated under the Societies Registration Act, 1860 (21 of 1860)

(ii) the Society has been authorised to act as an insurance agent under its Bye-laws, Rules and Regulations (vide Rule/Bye-law. . . . . . . . . . . .)

(iii) the particulars given above are true and that the licence for which our Society apply will be used only by our Society for soliciting or procuring insurance business; and

(iv) the undersigned has been duly authorised to sign this application.

Yours faithfully,

*Strike out portions not required.

1. The attention of the applicant is drawn to Section 104 of the Insurance Act, 1938, which provides that whoever in any document required for the purposes of any of the provisions of this Act wilfully makes a statement false in any material particular, knowing it to be false, shall be punishable with imprisonment for a term which may extend to three years or with fine which may extend to one thousand rupees, or with both.

2. A licence can be granted to a Society registered or incorporated under the Societies Registration Act, 1860.

3. A copy of the Bye-laws, Rules or Regulations of the applicant certified by its President or Chairman must accompany this application.

4. The application should be filled in, as far as possible, in English language.

5. Any correction or alteration made in any answer to the questions in the application should be initialled by the applicant.

6. Payment in CASH OR BY MONEY ORDER, CHEQUE, POSTAGE STAMP OR BANK DRAFT is not accepted and will be returned at applicant's cost.

7. No acknowledgment of this application will be sent. If one is required, the application should be sent by registered post (acknowledgment due).

(See Rule 16-A of the Insurance Rules, 1939)

From

Name of applicant . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . .

(In Block Letters)

Full address . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . .

(In Block Letters)

To

The Controller of Insurance,

Simla

Licence No. . . . . . . . . . . . . . . . .

Date of expiry. . . . . . . . . . . . . . .

Dear Sir,

It is requested that the above licence may be renewed for a further period of three years.

2. *It is hereby declared that

*(Please see footnote also).

*registered

(i) Our Society has been under the Societies Registration Act, 1860

incorporated

(ii) the Society has also been authorised to act as an insurance agent under its Bye-laws, Rule and Regulations (vide Rule/Bye-law . . . . . . . . . . . . . . . . .);

(iii) the particulars given above are true and that the licence for which our *Society apply will be used only by our Society for soliciting or procuring insurance business; and

(iv) the undersigned has been duly authorised to sign this application.

Yours faithfully,

(Seal of the Society)

Name of Place . . . . . . . . . . . . . . . . .

Dated the . . . . . . . . . . . . . . . . . 20.

*Strike out portions not required.

1. The attention of the applicant is drawn to Section 104 of the Insurance Act, 1938, which provides that whoever in any document required for the purposes of any of the provisions of that Act, wilfully makes a statement, false in any material particular, knowing it to be false shall be punishable with imprisonment for a term which may extend to three years or with fine which may extend to one thousand rupees, or with both.

2. The name and the licence number given in the application should be identical with those shown in the last licence. If there is any subsequent change in the name, the reasons for the same should be stated furnishing documentary evidence for the same.

3. Any correction or alteration made in the application should be initialled by the applicant.

4. The application should be filled in, as far as possible, in the English language.

5. The application should reach the Controller of Insurance before the date of expiry of the last licence held by the applicant but not more than three months before such expiry and Government of India Insurance stamp for Rs 15 should be affixed to it. If the application does not reach the Controller of Insurance at least 30 days before the date on which the last licence ceases to be in force, Government of India Insurance stamp to the value of Rs 7 should be affixed to the application by way of penalty. In this connection also refer to the provisos to Rule 16-A of the Insurance Rules, 1939.

6. Payment in CASH OR BY MONEY ORDER, CHEQUE, POSTAL ORDER, POSTAGE STAMP OR BANK DRAFT is not accepted and will be returned at applicant's cost.

7. No acknowledgment of this application will be sent. If one is required the application should be sent by registered post (acknowledgment due).

GOVERNMENT OF INDIAOFFICE OF THE CONTROLLER OF INSURANCE

LICENCE NO. . . . . . . . . . . . .

(See Rule 16-A of the Insurance Rules, 1939)

having paid the prescribed fee and having made the necessary declaration is hereby authorised to act as an Insurance Agent for three years from . . . . . . . . . . . . . . . Simla, dated the . . . . . . . . . . ., 20.

Controller of Insurance.

Signature and seal of licence holder . . . . . . . . . . . . .

This licence is not valid unless it bears a facsimile of the signature of the Controller of Insurance and the initials of a person authorised by him in this behalf and the signature of the licence holder. The latter should put his signature and seal as the licence is received.

1. If it is desired to renew this licence for a further period, the procedure laid down in Rules 16 and 16-A of the Insurance Rules, 1939, shall be followed, and an application for renewal should reach the Controller of Insurance before the licence expires. In this connection, attention is also invited to the provisos to Rule 16-A of the Insurance Rules, 1939.

2. No correction in this licence will be valid unless initialled by the Controller of Insurance or a person authorised by him in this behalf.

[See Rule 16-D(a)]

To

The Controller of Insurance,

Simla.

Dear Sir,

It is requested that a certificate to act as a Principal/Chief/Special Agent may be granted to me/our Firm/our Company. I/We am/are/will be working for . . . . . . . . . . . and the functions that will be entrusted to me/us are . . . . . . . . . . . . . .

*2. It is hereby declared that

(i) I/any partner of our Firm/any director of our Company have/has not been found to be of unsound mind by a court of competent jurisdiction;

(ii) I/any partner of our Firm/any director of our Company have/has not been found guilty of criminal misappropriation or criminal breach of trust, or cheating or forgery, or an abetment of or attempt to commit any such offence by a court of competent jurisdiction;

(iii) I/any partner of our Firm/any director of our Company have/has not been found guilty of or to have knowingly participated in or connived at any fraud, dishonesty or misrepresentation against an insurer or an insured in the course of any judicial proceeding relating to any policy of insurance or the winding up of an insurance company or in the course of an investigation of the affairs of an insurer; and

(iv) I/any partner of our Firm/any director of our Company am/is not a minor.

3. It is also declared that particulars given below are true and that the certificate for which I/our Firm/our Company apply will be used only by myself/our Firm/our Company for causing insurance business to be solicited or procured.

N.B. Replies to (a), (b) and (c) to be given only if the reply to the main query is in the affirmative.

*Strike out portion not required.

Government of India Insurance Stamps.

Name of place

Date

Yours faithfully

(Signature of applicant)

1. The attention of the applicant is drawn to Section 104 of the Act, which provides that whoever in any document required for the purposes of any of the provisions of that Act, wilfully makes a statement false in any material particular, knowing it to be false, shall be punishable with imprisonment for a term which may extend to three years, or with fine which may extend to one thousand rupees, or with both.

2. The fee for obtaining a certificate to act as Principal Agent and a Chief Agent is Rs 25 and the fee for obtaining a certificate to act as a Special Agent is Rs 10.

3. The application should be filled in the English language.

4. Any correction or alteration made in any answer to the question in the application should be initialled by the applicant.

5. Payment in cash or by money order, cheque, postal order, postage stamp or bank draft is not accepted and will be returned at the applicant's cost.

6. No acknowledgment of this application will be sent. If one is required, the application should be sent by registered post (acknowledgment due).

7. In the case of a special agent it is not necessary to state the functions, entrusted to him.

[See Rule 16-D(a)]

From Mr/Mrs/Miss/Messrs

(Name of Principal/Chief/Special Agent)

(In Block Letters)

Full address

(In Block Letters)

To

The Controller of Insurance,

Simla

Dear Sir,

Certificate No.

Date of Expiry.

It is requested that the above certificate may be renewed for a further period of one year.

*2. It is hereby declared that since the date of my/our Firm's/our Company's last application for a certificate

(i) I/any partner of our Firm/any director of our Company have/has not been found to be of unsound mind by a court of competent jurisdiction;

(ii) I/any partner of our Firm/any director of our Company have/has not been found guilty of criminal misappropriation or criminal breach of trust, or cheating or forgery or an abetment of or attempt to commit any such offence by a court of competent jurisdiction;

(iii) I/any partner of our Firm/any director of our Company have/has not been found guilty of or to have knowingly participated in or connived at any fraud, dishonesty or misrepresentation against an insurer or an insured in the course of any judicial proceedings relating to any policy of insurance or the winding up of an insurance company or in the course of an investigation of the affairs of an insurer; and

(iv) my/our firm's/our company's certificate has not been cancelled at any time by the Controller of Insurance.

3. A certificate from the insurer for whom I am/we are working, viz., . . . . . . . . . . . . . . . . . . . . . . . . . .

(Name of Insurer)

to the effect that in the preceding calendar year the provisions of clauses 2 and 3 of Part A/clauses 2 and 4 of Part B/clauses 2 and 3 of Part C of the Sixth Schedule to the Insurance Act, 1938, have been complied with by me/us is attached. The functions entrusted to me/us by the said insurer since the certificate was last renewed or issued were. . . . . . . . . . . . . . . . . . . . . .