The Insurance Act, 1938

( ACT NO. IV Of 1938 )

এই আইনটি বীমা আইন, ২০১০ (২০১০ সনের ১৩ নং আইন) দ্বারা রহিত করা হইয়াছে।

An Act to consolidate and amend the law relating to the business of insurance.♠ ♣

 
 
 
WHEREAS it is expedient to consolidate and amend the law relating to the business of insurance;
 
 
 
 
It is hereby enacted as follows:-
 
 
 

CONTENTS

SECTIONS

1. Short title, extent and commencement

2. Definitions

2A. Insurers to be subject to this Act while liabilities remain unsatisfied

2B. This Act not to apply to certain insurers ceasing to enter into new contracts before commencement of Act

2C. Prohibition of transaction of insurance business by certain persons

3. Registration

3A. Renewal of Registration

3AA. Insurers not to transact both life and general insurance business

3B. Rates, terms and conditions of operation of an insurer

3BB. Basis for determination of premium rates

3BBB. Determination of premium rates for general insurance business

3C. Provisions relating to collection of premiums

3D. Provisions relating to reinsurances and insurances abroad

3E. Licensing of branch offices of insurers

3F. Restriction on issue of certain policies at new rates, etc.

4. [Omitted.]

5. Restriction on name of insurer

6. Requirements as to capital and share-holdings

7. Deposits

8. Reservation of deposits

9. Refund of deposits

10. Separation of accounts and funds

11. Accounts and balance-sheet

12. Audit

12A. Special audit

13. Actuarial report and abstract

14. Register of policies and register of claims

15. Submission of returns

16.[Omitted.]

17. Exemption from certain provisions of the Companies Act, 1913

17A. [Omitted.]

18. Furnishing reports

19. Abstract of proceedings of general meetings

20. Custody and inspection of documents and supply of copies

21. Powers of Chief Controller of Insurance regarding returns

22. Power of Chief Controller of Insurance to order revaluation 23. Evidence of documents

23. Evidence of documents

24. [Omitted.]

25. Returns to be published in statutory forms

26. Alterations in the particulars furnished with application for registration to be reported

27. Investment of assets

27A. Insurers of general insurance business to have assets invested in Bangladesh

27B. Restriction on certain investments, etc.

28. Statement of investments of assets

29. Prohibition of loans

30. Liability of directors, etc., for loss due to contraventions of sections 27 and 29

31. Assets of insurer how to be kept

32. Appointment of managing agent prohibited

32A. Power to restrict payment of excessive remuneration

32B. Provisions relating to managers, etc.

33. Power of Chief Controller of Insurance to order investigation

34. Powers of investigator

34A. Power to give directions to the insurer

34B. Power to require calling of meeting of directors, etc.

34C. Power to remove Chairman, Director, etc., of the insurer

35. Amalgamation and transfer of Insurance business

36.Sanction of amalgamation and transfer by Court

37. Statements required after amalgamation and transfer

38.Assignment and transfer of insurance policies

39.Nomination by policy-holder

40. Prohibition of payment by way of commission or otherwise for procuring business

40A. Limitation of expenditure on commission

40B. Limitation of expenses of management in life insurance business

40C. Limitation of expenses of management in general insurance business

40D. Remuneration

41. Prohibition of rebates

42. Licensing of insurance agents

42A. Certificates to employers of agents

42B. Powers to ensure compliance with certain provisions

43. Register of insurance agents

43A. Provisions of contracts with agents

44. Prohibition of cessation of payment of commission

44A. Insurance surveyors to hold certificates

44B. Second survey

45. Policy not to be called in question on ground of mis-statement after two years

46. Application of Bangladesh law to policies issued in Bangladesh

47. Payment of money into Court

47A. Dispute over claims on life policies of small amount

47B. Interest on late settlement of claims

47C. Dispute over motor insurance claim

47D. Qualifications of Chairman, etc.

47E. Resignation and removal

47F. Benches of the Board

47G. Fees for application

47H. Procedure and Powers of the Board

47I. Appeal

47J. Recovery of the claim as decided

47K. Notice to and hearing of insurance companies

47L. Other Jurisdiction of Board

48. Directors of insurers being companies

48A. Restriction on the life insurance agents’ becoming directors of Life Insurance Companies

48B. Restriction on becoming directors of insurers

48BB. Directors of insurers being public subscribers

48BBB. Restriction on appointment of nominated director

48BBBB. Chairman and Vice-Chairman

48C. Appointment of Chief Executives of insurers

48CC.Advisers of insurers

49. Restriction on dividends and bonuses

49A. Distribution of profits on life insurance business among policy-holders

50. Notice of options available to the assured on the lapsing of a policy

50A. Special provision in respect of certain life insurance policies

51. Supply of copies of proposals and medical reports

52. Prohibition of business on dividing principle

52A. When Administrator for management of insurance business may be appointed

52B. Powers and duties of the Administrator

52C. Powers of Administrator respecting property liable to attachment under section 106

52D. Cancellation of contracts and agreements

52E. Termination of appointment of Administrator

52F. Finality of decision of appointing Administrator

52G. Penalty for withholding document or property from Administrator

52H. Protection of action taken under sections 52A to 52D

53. Winding up by the Court

53A. Unpaid-up share capital

54. Voluntary winding up

55. Valuation of liabilities

56. Application of surplus assets of life insurance fund in liquidation or insolvency

57. Winding up secondary companies

58. Schemes for partial winding up of insurance companies

59. Return of deposits

60. Notice of policy values

61. Power of Court to reduce contracts of insurance

62. Power of Government to impose reciprocal disabilities on non-Bangladesh companies

63. Particulars to be filed by insurers established outside Bangladesh

64. Books to be kept by insurers established outside Bangladesh

65. Definition of “provident society”

66. Restrictions on provident societies

67. Name

68. Insurable interest

69. Dividing business

70. Registration

70A. Renewal of registration

70B. Supplementary information and reports of alterations in particulars furnished with application for registration

71. Certain provisions of Part II to apply to provident societies

72. Working capital

73. Deposits

73A. Restriction on name of provident society

74. Rules

75. Amendment of rules

76. Supply of copy of rules

77. Registered office

78. Publication of authorised capital to contain also subscribed and paid-up capital

79. Registers and books

80. Revenue account, balance-sheet and annual statements

81. Actuarial report and abstract

82. Submission of returns to Chief Controller of Insurance

83. Actuarial examination of schemes

84. Separation of accounts and funds

85. Investment of funds

86. Inspection of books

87.Inquiry by or on behalf of Chief Controller of Insurance

87A. Amalgamation and transfer of insurance business

88. Winding up by Court and voluntary winding up

89. Reduction of insurance contracts

90. Appointment of liquidator

90A. Application of Act to liquidators

91. Powers of liquidator

92. Procedure at liquidation

93. Dissolution of provident society

94. Nominations and assignments

95. Definitions

96. Application of Act to Mutual Insurance Companies and Co-operative [* * *]Life Insurance Societies

97. Working capital of Mutual Insurance Companies and Co-operative Insurance Societies

98. Deposits to be made by Mutual Insurance Companies and Co-operative Insurance Societies

98A. Prohibitions of loans

99. Transferees and assignees of policies not to become members

100.Publication of notices and documents of Mutual Insurance Companies and Co-operative [* * *] Insurance Societies

101. Supply of documents to members

102. Penalty for default in complying with, or act in contravention of this Act

103. Penalty for transacting insurance business in contravention of sections 3, 7 and 9

104. Penalty for false statement in document

105. Wrongfully obtaining or withholding property

106. Power of Court to order restoration of property of insurer or compensation in certain cases

106A. Notice to and hearing of Chief Controller of Insurance

107. Previous sanction of Attorney General for institution of proceedings

108. Power of Court to grant relief

109. Cognizance of offences

110. Appeals

110A. Delegation of powers and duties of Chief Controller of Insurance

110B. Signature of documents

110C. Powers to call for information

111. Service of notices

112. Declaration of interim bonuses

113. Acquisition of surrender values policy

114. Power of Government to make rules

114A. Power to amend Schedules

114B. Powers of the Chief Controller

115. Alteration of forms

116. [Omitted.]

116A. Summary returns to be published

117. Saving of provisions of Companies Act, 1913

118. Exemptions

119. Inspection and supply of copies of published prospectus, etc.

120. Determination of market value of securities deposited under this Act

120A. Advisory Board

120AA. Publicity Board

120B. [Omitted.]

121-123 [Omitted.]

Schedule

SCHEDULE