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The Insurance Act, 1938

( ACT NO. IV Of 1938 )

Powers and duties of the Administrator
52B. (1) The Administrator shall conduct the management of the business of the insurer with the greatest economy compatible with efficiency and shall, as soon as may be possible, file with the Chief Controller a report stating which of the following courses is in the circumstances most advantageous to the general interest of the holders of insurance policies, namely:-
 
 
 
 
(a) the transfer of the business of the insurer to some other insurer;
 
 
 
 
(b) the carrying on of its business by the insurer (in case of life insurance business whether with the policies of the business continued for the original sum insured with the addition of bonuses that attach to the policies or for reduced amounts);
 
 
 
 
(c) the winding up of business of the insurer; or
 
 
 
 
(d) such other course as he deems advisable.
 
 
 
 
(2) On the filing of the report with the Chief Controller, the Chief Controller may take such action as he thinks fit for promoting the interest of the holders of insurance policies in general.
 
 
 
 
(3) Any order passed by the Chief Controller under sub-section (2) shall be binding on all persons concerned, and shall have effect notwithstanding anything in the Memorandum or Articles of Association of the insurer, if a company.

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Ministry of Law, Justice and Parliamentary Affairs