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The Insurance Act, 1938

( ACT NO. IV OF 1938 )

Power to restrict payment of excessive remuneration
1[32A. (1) The Chief Controller of Insurance may, if he is satisfied that any insurer in the case of an insurer specified in sub-clause (a) (ii) or sub-clause (b) of clause (9) of section 2 in respect of all insurance business transacted by him and in the case of any other insurer in respect of the insurance business transacted by him in Bangladesh is paying any person remuneration, whether by way of commission or otherwise, on a scale disproportionate according to the normal standards prevailing in insurance business to the resources of the insurer, call upon the insurer to comply within six months with such directions as he may think fit to issue in the matter and if compliance with the direction so issued required the modification of any of the terms of the contract entered into by the insurer with such person no compensation shall be payable to such person by the insurer by reason only of such modification or of the resignation of such person if the modified terms are not acceptable to him and no payment by way of renewal commission or otherwise shall be made to such person by the insurer in respect of any payments made after the date of such resignation except at such rates as may be approved by the Chief Controller of Insurance in this behalf.
(2) Every insurer shall before the 30th day of June, 1958, and thereafter before the first day of March every year submit to the Chief Controller of Insurance a statement in the prescribed form showing the remuneration paid by way of commission or otherwise to any person in cases where such remuneration exceeds the sum of six thousand Taka in the previous calendar year.
(3) Where an insurer pays any person remuneration exceeding six thousand Taka a year in pursuance of any agreement between him and such person, the Chief Controller may, by notice in writing, require the insurer to submit a certified copy of such agreement and the insurer shall comply with any such requisition within the time specified in the notice.

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    Sections 32A and 32B were inserted by section 28 of the Insurance (Amendment) Act, 1958 (Act No. XXVII of 1958)
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