Provisions relating to managers, etc.
32B. (1) Notwithstanding anything to the contrary contained in the Companies Act, 1913, or in the Articles of Association of the insurer, if a company, or in any contract or agreement, no insurer shall, after the expiry of one year from the commencement of the Insurance (Amendment) Act, 1958, be directed or managed by, or employ as manager or officer or in any capacity, any person whose remuneration or any part thereof takes the form of commission or bonus on the total insurance business or on the total business of any class or sub-class of insurance business or on a part of any class or sub-class of general insurance business transacted by the insurer:
Provided that nothing in this sub-section shall be deemed to prohibit-
(i) the payment of commission to an insurance agent or employer of agents in respect of any insurance business procured by or through him;
(ii) the employment of any individual in a clerical or other subordinate capacity who, as an insurance agent, receives commission in respect of insurance business procured by him;
(iii) the employment as an officer of any individual who receives commission in respect of life insurance business procured by him in his capacity as an insurance agent or as an employer of agents;
(iv) the payment of a share in the profit of general insurance business;
(v) the payment of bonus in any year on a uniform basis to all salaried employees or any class of them by way of additional remuneration, such bonus, in the case of any employee, not exceeding in amount the equivalent of his salary for a period which, in the opinion of the Government, is reasonable having regard to the circumstances of the case.
(2) No person shall have any right, whether in contract or otherwise, to any compensation for any loss incurred by reason of the operation of any provision of this section.]