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Unit 6: The Insurance Act, 1938

(4A) “Banking Company” and “Company” shall have the meanings respectively assigned Notes
in them in clauses (c) and (d) of sub-section (1) of Section 5 of the Banking Companies Act, 1949
(10 of 1949);
(5) “Certified” in relation to any copy or translation of a document required to be furnished by
or on behalf of an insurer or a provident society as defined in Part III means certified by a
principal officer of such insurer or provident society to be a true copy or a correct translation, as
the case may be;
(5A) “Chief Agent” means a person who, not being a salaried employee of an insurer, in
consideration of any commission–

(i) Performs any administrative and organizing functions for the insurer, and
(ii) Procures life insurance business for the insurer by employing or causing to be employed
insurance agents on behalf of the insurer;
(5B) “Controller of Insurance” means the officer appointed by the Central Government under
section 2B to exercise all the powers, discharge the functions and performs the duties of the
Authority under this Act or the Insurance Corporation Act, 1956 (31 of 1956) or the General
Insurance Business (Nationalization) Act, 1972 (57 of 1972) or the Insurance Regulatory and
Development Authority Act, 1999;
(6) “Court” means the principal Civil Court of original jurisdiction in a district and includes the
High Court in exercise of its ordinary original civil jurisdiction;
(6A) “Fire insurance business” means the business of effecting, otherwise than incidentally to
some other class of insurance business, contracts of insurance against loss by or incidental to fire
or other occurrence customarily included among the risks insured against in fire insurance
Policies;
(6B) “General insurance business” means fire, marine or miscellaneous insurance business,
whether carried on singly or in combination with one or more of them;

(7) “Government security” means a Government security as defined in the Public Debt Act, 1944
(18 of 1944);

(7A) Indian Insurance Company means any insurer being a company–
(a) Which is formed and registered under the Companies Act, 1956 (1 of 1956);
(b) In which the aggregate holdings of equity shares by a foreign company, either by itself or
through its subsidiary companies or its nominees, do not exceed twenty-six per cent paid-
up equity capital of such Indian insurance company;
(c) Whose sole purpose is to carry on life insurance business or general insurance business or
re-insurance business;
(8) “Insurance Company” means any insurer being a company, association or partnership which
may be wound up under the Indian Companies Act, 1913 (7 of 1913), or to which the Indian
Partnership Act, 1932 (9 of 1932), applies;

(9) “Insurer” means:
(a) Any individual or unincorporated body of individuals or body corporate incorporated
under the law of any country other than India, carrying on insurance business not being a
person specified in sub-clause (c) of this clause which–
(i) Carries on that business in India, or

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