Page 101 - DCOM309_INSURANCE_LAWS_AND_PRACTICES

Insurance Laws and Practices

Notes
Did u know? Intimation of any change in any such contract shall be furnished by the insurer
with full particulars thereof to the Authority within thirty days of the making of any such
change.

(6) If the commission due to any insurance agent in respect of any general insurance business
procured by such agent is not paid by the principal agent for any reason, the insurer may pay the
insurance agent the commission so due and recover the amount so paid from the principal agent
concerned.

(7) Every contract as is referred to in sub-section (2), subsisting at the commencement of the
Insurance (Amendment) Act, 1950 (47 of 1950), shall, with respect to terms regarding remuneration,
be deemed to have been so altered as to be in accordance with the provisions of sub-section (4)
of section 40A.

(8) If any dispute arises as to whether a person is or was a principal agent the matter shall be
referred to the Authority, whose decision shall be final.

(9) Every insurer shall maintain a register in which the name and address of every principal
agent appointed by him, the date of such appointment and the date, if any, on which the
appointment ceased shall be entered.

Commission, brokerage or fee payable to intermediary or insurance intermediary

(1) No intermediary or insurance intermediary shall be paid or contract to be paid by way of
commission, fee or as remuneration in any form, an amount exceeding thirty per cent of the
premium payable as may be specified by the regulations made by the Authority, in respect of
any policy or policies effected through him:
Provided that the Authority may specify different amounts payable by way of commission, fee
or as remuneration to an intermediary or insurance intermediary or different classes of business
of insurance.

(2) Without prejudice to the provisions contained in this Act, the Authority may, by the regulations
made in this behalf, specify the requirements of capital, form of business and other conditions to
act as an intermediary or insurance intermediary.

Did u know? Register of Insurance Agents
Every insurer and every person who acting on behalf of an insurer employs insurance
agents shall maintain a register showing the name and address of every insurance agent
appointed by him and the date on which his appointment began and the date, if any, on
which his appointment ceased.

Self Assessment

Fill in the blanks:

7. Every contract between an insurer and a principal agent shall be in ………………………
8. A certified copy of every contract as is referred to in sub-section (2) shall be furnished by
the insurer to the Authority within ………………………… days of his entering into such
contract.

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