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29/02/2024
The Famine Insurance Fund Act, 1937 (Bengal Act)

The Famine Insurance Fund Act, 1937 (Bengal Act)

( ACT NO. III OF 1938 )

An Act to provide for the establishment and maintenance in Bangladesh of a Fund called the Bangladesh Famine Insurance Fund for expenditure upon relief of, and insurance against, famine and distress caused by serious drought, flood, earthquake or other natural calamities.1

 
 
 
WHEREAS it is expedient to provide for the establishment and maintenance in Bangladesh of a Fund for expenditure upon relief of, and insurance against, famine and distress caused by serious drought, flood, earthquake, or other natural calamities;
 
 
 
 
It is hereby enacted as follows:-
 
 
 

Short title
1. This Act may be called the 2[* * *] Famine Insurance Fund Act, 1937.
Definition
2. In this Act, unless there is anything repugnant in the subject or context, “Fund” means the Bangladesh, Famine Insurance Fund established under section 3.
Establishment of the Bangladesh Famine Insurance Fund
3. On the commencement of this Act, the Government shall establish in and for Bangladesh 3[* * *] a Fund, called the Bangladesh Famine Insurance Fund.
 
 
 
 
The Fund shall consist of -
 
 
 
 
(i) the contribution by the Government under section 4;
 
 
 
 
(ii) such other sums as the Government may contribute to the Fund under section 7; and
 
 
(iii) the interest which may from time to time accrue on the securities in which the sums to the credit of the Fund may be invested or re-invested under section 6.
Initial contribution to the Famine Insurance Fund by Government
4. As soon as may be after the commencement of this Act, the Government, shall, for the purpose of the establishment of the Fund, make an initial contribution to the Fund, of the sum of ten lakhs of Taka.
Purposes for which the Fund may be utilised
5. Expenditure from the Fund shall not be incurred except upon the relief of famine and the relief of distress caused by serious drought, flood, earthquake or other natural calamities:
 
 
 
 
Provided that, if at any time, the total amount of the Fund exceeds twelve lakhs of Taka the Government may utilise such excess to meet expenditure on protective irrigation works and other works for the prevention of famine or flood or to pay debt charges for which the Government may from time to time be liable, including interest, sinking fund charges and redemption charges.
Investment and re-investment of amount not required.
6. The Government shall from time to time invest or re-invest in its own securities 4[* * *] all sums to the credit of the Fund, which may not be immediately required for any of the purposes mentioned in section 5.
Accounts of the Fund and making up of the deficiency in the Fund
7. (1) The Accounts of the Fund shall be made up at the end of each financial year, the securities, if any, belonging to the Fund, being valued at their market value on the last day of such year and an abstract of such Accounts shall be placed before 5[Parliament] every year along with the annual financial statement 6[* * *].
 
 
(2) If the Accounts so made up in respect of any year show that the balance at the credit of the Fund falls short of twelve lakhs of Taka the deficiency shall be made up by contribution from the revenues of the Government:
 
 
 
 
Provided that if the deficiency exceeds two lakhs of Taka, it may be made up in annual instalments, the amount of each instalment except the last being not less than two lakhs of Taka.
Contributions under the Act to be charged upon the revenues of Government
8. All contributions made under this Act to the Fund are hereby declared to be expenditure charged upon the revenues of Government.
Power of Government to make rules
9. The Government may make rules, consistent with this Act, for the purpose of giving effect to the provisions of this Act.

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Ministry of Law, Justice and Parliamentary Affairs