Irda Act
[File split into 3 Parts for easy downloading Part I]
LAW COMMISSION OF INDIA
CONSULTATION PAPER ON REVISION OF THE INSURANCE ACT 1938 & THE INSURANCE REGULATORY & DEVELOPMENT ACT 1999
June 2003
consultation paper can also be downloaded from http://lawcommissionofindia.nic.in
Comments and suggestions on the consultation paper can be sent to vnathan@nic.in Member-Secretary before 10th July 2003 by by email to or mail to Room No 730 ‘A’ Wing Law Commission of India 7th Floor, Shastri Bhavan New Delhi-110001
INDEX TO CONSULTATION PAPER 1 2. 3. 3.2 4. 4.1 4.4 5. 6. 6.3 7. 8. 8.1 8.2 8.3 8.4 8.5 8.5.1 8.5.2 8.5.3 8.5.4 8.5.5 8.5.6 8.5.7 8.5.8 8.5.9 Introduction Legislative Regime Background to recent legislative changes Malhotra Committee Report Regulatory Legal Regime Insurance Regulatory and Development Authority Act, (IRDA) 1999 Powers and functions of IRDA Legislative developments after 1999 Need for and grounds of revision of the Insurance Act, 1938 Some tentative grounds of revision Plan of revisions of the provisions of the Insurance Act, 1938 Proposals for revision Merger of the provisions of IRDA Act into the Insurance Act Changes in definitions, deletions and other amendments Powers of the IRDA Obligations of the insurers under the Act Interests of the policyholders Supply of copies of proposal and medical reports Notice to given of the options on the lapsing of the policy Policy not to be called in question on the ground of misstatement after three years Policy holders to elect directors of insurers Life Insurance agents not to be appointed as directors of life insurance companies Assignment and transfer of policies Proposal for partial assignment of policies Nomination by policyholder Payment of money into court 5–6 6 6 7 7 7-8 8-9 9 9-10 10-13 13 13 13-15 15 15-26 26 26 26 27-28 28-29 29-30 30 30-31 31-32 32-35 35
8.6 8.6.4 8.6.7 8.6.7.1 8.6.7.5 8.6.7.9 8.6.7.10 8.6.8 8.7 8.7.5 8.7.6 8.7.8 8.7.12 8.8 8.9 8.9.1 8.9.2 8.9.7 8.9.8 8.9.10
LAW COMMISSION OF INDIA
CONSULTATION PAPER ON REVISION OF THE INSURANCE ACT 1938 & THE INSURANCE REGULATORY & DEVELOPMENT ACT 1999
June 2003
consultation paper can also be downloaded from http://lawcommissionofindia.nic.in
Comments and suggestions on the consultation paper can be sent to vnathan@nic.in Member-Secretary before 10th July 2003 by by email to or mail to Room No 730 ‘A’ Wing Law Commission of India 7th Floor, Shastri Bhavan New Delhi-110001
INDEX TO CONSULTATION PAPER 1 2. 3. 3.2 4. 4.1 4.4 5. 6. 6.3 7. 8. 8.1 8.2 8.3 8.4 8.5 8.5.1 8.5.2 8.5.3 8.5.4 8.5.5 8.5.6 8.5.7 8.5.8 8.5.9 Introduction Legislative Regime Background to recent legislative changes Malhotra Committee Report Regulatory Legal Regime Insurance Regulatory and Development Authority Act, (IRDA) 1999 Powers and functions of IRDA Legislative developments after 1999 Need for and grounds of revision of the Insurance Act, 1938 Some tentative grounds of revision Plan of revisions of the provisions of the Insurance Act, 1938 Proposals for revision Merger of the provisions of IRDA Act into the Insurance Act Changes in definitions, deletions and other amendments Powers of the IRDA Obligations of the insurers under the Act Interests of the policyholders Supply of copies of proposal and medical reports Notice to given of the options on the lapsing of the policy Policy not to be called in question on the ground of misstatement after three years Policy holders to elect directors of insurers Life Insurance agents not to be appointed as directors of life insurance companies Assignment and transfer of policies Proposal for partial assignment of policies Nomination by policyholder Payment of money into court 5–6 6 6 7 7 7-8 8-9 9 9-10 10-13 13 13 13-15 15 15-26 26 26 26 27-28 28-29 29-30 30 30-31 31-32 32-35 35
8.6 8.6.4 8.6.7 8.6.7.1 8.6.7.5 8.6.7.9 8.6.7.10 8.6.8 8.7 8.7.5 8.7.6 8.7.8 8.7.12 8.8 8.9 8.9.1 8.9.2 8.9.7 8.9.8 8.9.10
References: Provision of the Insurance Act, 1938 Change proposed