Page 99 - DCOM309_INSURANCE_LAWS_AND_PRACTICES

Insurance Laws and Practices

Notes 4. The amount of any deposit made under section 7 or section 98 by the insurer in respect of
his life insurance business shall be deemed to be assets invested or kept invested
………………………………. securities.

6.3 Registration of Principal Agents, Chief Agents and Special Agents

In this section, we will throw some light on the registration of principle agents, chief agents and
special agents.

(1) The Authority or an officer authorized by it in this behalf shall in the prescribed manner and
on payment of the prescribed fee, which shall not be more than twenty-five rupees for a principal
agent or a chief agent and ten rupees for a special agent, register any person who makes an
application to him in the prescribed manner if,—

(a) In the case of an individual, he does not suffer from any of the disqualifications mentioned
in sub-section (4) of Section 42, or
(b) In the case of a company or firm, any of its directors or partners does not suffer from any
of the said disqualifications, and a certificate to Act as a principal agent, chief agent or
special agent, as the case may be, for the purpose of procuring insurance business shall be
issued to him.
(2) A certificate issued under this section shall entitle the holder thereof to act as a principal
agent, chief agent, or special agent, as the case may be, for any insurer.
(3) A certificate issued under this section shall remain in force for a period of twelve months
only from the date of issue, but shall, on application made on this behalf, be renewed from year
to year on production of a certificate from the insurer concerned that the provisions of clauses (2)
and (3) of Part A of the Sixth Schedule in the case of a principal agent, the provisions of clauses
(2) and (4) of Part B of the said Schedule in the case of a chief agent, and the provisions of clauses
(2) and (3) of Part C of the said Schedule in the case of a special agent, have been complied with,
and on payment of the prescribed fee, which shall not be more than twenty-five rupees, in the
case of a principal agent or a chief agent, and ten rupees in the case of a special agent, and an
additional fee of the prescribed amount not exceeding five rupees by way of penalty, in cases
where the application for renewal of the certificate does not reach the issuing authority before
the date on which the certificate ceases to remain in force:
Provided that, where the applicant is an individual, he does not suffer from any of the
disqualifications mentioned in clauses (b) to (d) of sub-section (4) of section 42 and where the
applicant is a company or a firm, any of its directors or partners does not suffer from any of the
said disqualifications.
(4) Where it is found that the principal agent, chief agent or special agent being an individual is,
or being a company or firm contains a director or partner who is suffering from any of the
disqualifications mentioned in sub-section (4) of section 42, without prejudice to any other
penalty to which he may be liable, the Authority shall, and where a principal agent, chief agent
or special agent has contravened any of the provisions of this Act may cancel the certificate
issued under this section to such principal agent, chief agent or special agent.

(5) The authority which issued any certificate under this section may issue a duplicate certificate
to replace a certificate lost, destroyed or mutilated on payment of the prescribed fee, which shall
not be more than two rupees.

(6) Any person who acts as a principal agent, chief agent or special agent, without holding a
certificate issued under this section to act as such, shall be punishable with fine which may
extend to five hundred rupees, and any insurer or any person acting on behalf of an insurer, who

94 LOVELY PROFESSIONAL UNIVERSITY