Print View

[Section Index]

The Insurance Act, 1938

( ACT NO. IV Of 1938 )

74. (1) Every provident society shall in its rules set forth-
(a) the name, the object and the location of the registered office of the society;
(b) the contingencies or classes of contingency on the happening of which money is to be paid;
(c) the conditions to be complied with before, and the payments to be made on, admission to the society;
(d) the rates of premium or contribution, and the periods for which or the times at which premiums or contributions are payable;
(e) the maximum amount payable to a subscriber or policy-holder;
(f) the nature and amounts of the benefits provided for by the society;
(g) the circumstances in which a bonus may be paid to a policy-holder;
(h) the nature of the evidence required for the proof of the happening of any contingency on which money is to be paid;
(i) the circumstances in which policies may be forfeited or renewed or the whole or a part of the premiums paid on a policy may be returned, or a surrender value of a policy may be granted;
(j) the penalties for delay in paying or failure to pay premiums or contributions;
(k) the proportion of the annual income of the society which may be disbursed on and the provisions to be made for meeting the expenses of the management of the society;
(l) the person or persons who or the authority which shall have power to invest the funds of the society;
(m) the provisions for appointment of auditors and their remuneration;
(n) the procedure to be adopted in altering the rules of the society;
(o) unless these are provided for in the Articles of Association of a society which is a company incorporated under the Companies Act, 1913, or under the Indian Companies Act, 1882, or under the Indian Companies Act, 1866, or under any Act repealed thereby,-
(i) the mode of appointment and removal, the qualification and the powers of a director, manager, secretary or other officer of the society;
(ii) the manner of raising additional capital; and
(iii) the provisions for the holding of general meetings of the members and policy-holders and for the powers to be exercised and the procedure to be followed thereat; and
(p) such other matters as may be prescribed.
(2) Where the rules of any provident society registered under the Provident Insurance Societies Act, 1912, fail to comply with the provisions of this section the society shall, before the expiry of twelve months from the commencement of this Act, amend the rules so as to comply with these provisions.

Copyright © 2019, Legislative and Parliamentary Affairs Division
Ministry of Law, Justice and Parliamentary Affairs