Page 102 - DCOM309_INSURANCE_LAWS_AND_PRACTICES

Unit 6: The Insurance Act, 1938

9. Every insurer shall maintain a ……………………… in which the name and address of Notes
every principal agent appointed by him.
10. No intermediary or insurance intermediary shall be paid by way of commission, fee or as
remuneration in any form, an amount exceeding thirty per cent of the
……………………………… payable.

6.5 Renewal of Registration

In this section, we will study about the renewal of registration.
(1) An insurer who has been granted a certificate of registration under section 3 shall have the
registration renewed annually for each year after that ending on the 31st day of March, after the
commencement of the Insurance Regulatory and Development Authority Act, 1999.
(2) An application for the renewal of a registration for any year shall be made by the insurer to the Authority
before the 31st day of December of the preceding year, and shall be accompanied as provided in sub-section
(3) By evidence of payment of the fee as determined by the regulations made by the Authority
which may vary according to the total gross premium written direct in India, during the year
preceding the year in which the application is required to be made under this section, by the
insurer in the class of insurance business to which the registration relates but shall not—
(i) Exceed one-fourth of one per cent of such premium income or rupees five crore, whichever
is less;
(ii) Be less, in any case, than five hundred rupees for each class of insurance business:

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Caution Provided that in the case of an insurer carrying on solely re-insurance business,
the provisions of this sub-section shall apply with the modification that instead of the
total gross premium written direct in India, the total premiums in respect of facultative re-
insurances accepted by him in India shall be taken into account.

(3) The fee as determined by the regulations made by the Authority for the renewal of a
registration for any year shall, be paid into the Reserve Bank of India, or where there is no office
of that Bank, into the Imperial Bank of India acting as the agent of that Bank, or into any
Government treasury, and the receipt shall be sent along with the application for renewal of the
registration.
(4) If an insurer fails to apply for renewal of registration before the date specified in sub-section
(2) the Authority may, so long as an application to the Court under sub-section (5-D) of section
3 has not been made, accept an application for renewal of the registration on receipt from the
insurer of the fee payable with the application and such penalty, not exceeding the fee as
determined by the regulations made by the Authority, and payable by him, as the Authority
may require:

Self Assessment

Fill in the blanks:

11. An insurer who has been granted a certificate of registration under section 3 shall have the
registration renewed ……………………………
12. The fee as determined by the regulations made by the Authority for the
…………………………. of a registration for any year shall, be paid into the Reserve Bank
of India.

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