Page 105 - DCOM309_INSURANCE_LAWS_AND_PRACTICES
P. 105
Insurance Laws and Practices
Notes (11) The provisions of this section, except those of sub-sections (7), (8) and (9), shall, on and from
the commencement of the Insurance (Amendment) Act, 1968, also apply to insurers carrying on
general insurance business subject to the following notifications, namely:–
(i) That references in sub-sections (1), (3), (5) and (6) to the Insurance (Amendment) Act, 1950,
(47 of 1950), shall be construed as reference to the Insurance (Amendment) Act, 1968; and
(ii) References in sub-section (10) to sub-sections (7) and (8) shall be omitted.
Explanation: For the purposes of this section, the holding of a person in the shares of a company
shall be deemed to include:
(i) The total paid-up holding in such shares held by such person in the name of others; and
(ii) If any shares of the company are held –
(a) By a public limited company, of which such person is a member holding more than
ten per cent of the paid-up capital, or
(b) By a private limited company, of which such person is a member, or
(c) By a company, of which such person is a managing director, manager, managing
agent or in which he has a controlling interest, or
(d) By a firm in which such person is a partner, or
(e) By such person jointly with others, such part of the total paid-up holding of the
company or firm or of the total joint holding in those shares, as is proportionate to
the contribution made by such person to the paid-up capital of the company, the
paid-up capital of the firm or the joint holding, as the case may be.
Self Assessment
Fill in the blanks:
13. No public company as aforesaid which carries on life insurance business shall, after the
commencement of the Insurance (Amendment) Act, 1950, issue any shares other than
………………………. shares of the nature specified in sub-section (1).
14. The holding of a person in the shares of a company shall be deemed to include the total
……………………….. holding in such shares held by such person in the name of others.
Case Study Efforts on to pass Insurance Laws (Amendment) Bill
in winter session: JD Seelam
overnment will make all efforts to pass the Insurance Laws (Amendment) Bill in
the on-going winter session of Parliament, Minister of State for Finance JD Seelam
Gsaid:
“We are trying to push (for passage of the Insurance Bill in the current session). Let us see,”
he said at an event on Investing in Multiple Financial Products – Optimising Returns &
Minimising Risks, organised by Assocham.
The Insurance Laws (Amendment) Bill, 2008 provides for an increase in foreign investment
limit from 26 per cent to 49 per cent.
Contd...
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