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The Insurance Act, 1938

( ACT NO. IV OF 1938 )

[ 26th February, 1938 ]

Part II

COMMISSION AND REBATES AND LICENSING OF AGENTS

Certificates to employers of agents
1[42A. (1) Any individual who has-
 
 
(a) worked as a life insurance agent for such period as may be prescribed;
 
 
 
 
(b) procured such volume of life insurance as may be prescribed of which such percentage as may be prescribed remains in force one month prior to the date of application referred to in clause (c); and
 
 
 
 
(c) applied in the prescribed manner to the Chief Controller of Insurance and has paid the prescribed fee which shall not be more than 2[five] hundred Taka,
 
 
 
 
may be granted a temporary certificate to act as an employer of agents on behalf of an insurer for the purpose of procuring life insurance business.
 
 
 
 
(2) A temporary certificate issued under sub-section (1) shall remain in force for a period of two years.
 
 
(3) On his making to the Chief Controller of Insurance in the prescribed manner an application accompanied by the prescribed fee which shall not be more than 3[seven hundred and fifty] Taka, the holder of a temporary certificate who has passed such examination as may be prescribed, and any other person who is qualified to be granted a temporary certificate and has passed the examination, shall be granted a renewable certificate.
 
 
 
 
(4) A renewable certificate shall remain in force for a period of three years from the date of issue but shall be renewed for a further period of three years at any one time if-
 
 
 
 
(i) an application in the prescribed form for renewal of the certificate reaches the issuing authority at least one month before the date on which the certificate ceases to remain in force;
 
 
 
 
(ii) the applicant has paid the prescribed renewal fee which shall not be more than 4[seven hundred and fifty] Taka;
 
 
 
 
(iii) except in such circumstances as may be prescribed, the applicant has complied with such provisions relating to recruitment of agents who have qualified for a renewable certificate and produced such volume of business and from out of the business procured by whom the number of policies lapsing has been below such percentage as may be prescribed.
 
 
 
 
(5) An individual to whom a temporary certificate has been granted and who is unable to pass the examination prescribed under sub-section (3) shall not be entitled to apply for another temporary certificate:
 
 
Provided that the Chief Controller of Insurance may grant a fresh temporary certificate to an individual who has previously held a temporary certificate if such individual has introduced such number of agents who have qualified for a renewable licence and produced such volume of business and from out of the business procured by whom the number of policies lapsing has been below such percentage as may be prescribed.
 
 
 
 
(6) Notwithstanding the provisions of clause (i) of sub-section (4), an application for the renewal of a renewable certificate which does not reach the issuing authority at least one month from the date on which the certificate ceases to remain in force shall be entertained at any time before that date if the applicant has paid an additional fee of a prescribed amount not exceeding 5[two hundred and fifty] Taka by way of penalty:
 
 
 
 
Provided that the Chief Controller of Insurance may, if satisfied that undue hardship would be caused otherwise, entertain an application received after the certificate ceases to remain in force on payment by the application of a penalty of a prescribed amount not exceeding 6[seven hundred and fifty] Taka.
 
 
 
 
7[(7) The Chief Controller of Insurance or an officer authorised by him in this behalf shall, in the prescribed manner and on payment of the prescribed fee which shall not be more than five hundred Taka, issue to any person making an application in the prescribed manner a certificate to act as an employer of agents on behalf of an insurer for the purposes of procuring general insurance business.
 
 
(8) A certificate issued under sub-section (7) shall remain in force for a period of one year from the date of issue, but shall, on application made in this behalf, be renewed from year to year if-
 
 
 
 
(i) an application in the prescribed form for renewal of the certificate reaches the issuing authority before the date on which the certificate ceases to remain in force;
 
 
 
 
(ii) the applicant has paid the prescribed renewal fee which shall not be more than five hundred Taka; and
 
 
 
 
(iii) the applicant has procured or caused to be procured such minimum amount of general insurance business and has complied with such conditions as may be prescribed in this behalf:
 
 
 
 
Provided that an application for the renewal of a certificate which does not reach the issuing authority before the certificate ceases to remain in force shall be entertained if the applicant has submitted an application within twelve months from the date the certificate ceases to remain in force and has paid an additional fee of the prescribed amount not exceeding five hundred Taka by way of penalty.
 
 
 
 
(9) No fresh certificate shall be issued to an employer of agents whose certificate has not been renewed under sub-section (8), until after one year from the date on which his last certificate ceased to remain in force.]
 
 
 
 
(10) No person shall apply for any certificate or for the renewal thereof if-
 
 
 
 
(i) he is a minor;
 
 
 
 
(ii) he has been found to be of unsound mind by a Court of competent jurisdiction;
 
 
 
 
(iii) he has been found guilty of criminal misappropriation or criminal breach of trust or cheating or forgery or an abetment of or attempt to commit any such offence by a Court of competent jurisdiction:
 
 
Provided that where, in the case of a person convicted of any such offence, five years have elapsed since date of the sentence or, where the sentence was of imprisonment with or without fine, from the date of his release, the Chief Controller of Insurance shall ordinarily declare in respect of such person that his conviction shall cease to debar him from making such an application;
 
 
 
 
(iv) in the course of any judicial proceeding relating to any policy of insurance or the winding up of an insurance company or in the course of an investigation of the affairs of an insurer, it has been found that he has been guilty of or has knowingly participated in or connived at any fraud, dishonesty or misrepresentation against an insurer or an insured.
 
 
 
 
(11) Where it is found that an employer of agents being an individual is, or being a company or firm contains a director or partner who is, debarred by sub-section (10) from making an application, without prejudice to any other penalty to which he may be liable, the Chief Controller of Insurance shall, and where an employer of agents has contravened any of the provisions of this Act or any rule or order made thereunder may, cancel a certificate issued to the employer of agents under this section.
 
 
 
 
(12) In the event of the cancellation of a certificate under sub-section (11), the Chief Controller of Insurance may refuse to grant a fresh certificate to the employer of agents for such period as the Chief Controller may deem fit.
 
 
 
 
(13) 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 five Taka.
 
 
 
 
(14) A certificate issued under this section shall entitle the holder thereof to act as an employer of agents for any insurer.
 
 
 
 
(15) The Chief Controller shall, if he refuses a certificate or the renewal of a certificate under this section, communicate his decision in writing to the applicant for the certificate or renewal within six weeks from the date of the application.]
  • 1
    Section 42A was inserted by section 36 of the Insurance (Amendment) Act, 1958 (Act No. XXVII of 1958) and subsequently substituted by section 22 of the Insurance (Amendment) Ordinance, 1970 (Ordinance No. XXV of 1970)
  • 2
    The word “five” was substituted for the word “one” by section 8 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
  • 3
    The words “seven hundred and fifty” were substituted for the words “one hundred and fifty” by section 8 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
  • 4
    The words “seven hundred and fifty” were substituted for the words “one hundred and fifty” by section 8 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
  • 5
    The words “two hundred and fifty” were substituted for the words “twenty-five” by section 8 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
  • 6
    The words “seven hundred and fifty” were substituted for the words “one hundred and fifty” by section 8 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
  • 7
    Sub-sections (7), (8) and (9) were substituted by section 8 of the Insurance (Amendment) Act, 1993 (Act No. XII of 1993)
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