Section 29 of The General Insurance Business (Nationalisation) Act, 1972
- (1)Where any property appertaining to an existing insurer has been transferred to and vested in an Indian insurance company under section 5,--
- (a)every person in whose possession, custody or control any such property may be, shall deliver the property to the Indian insurance company forthwith,
- (b)any person who immediately before such vesting has in his possession, custody or control any books, documents or other papers relating to an existing insurer shall be liable to account for the said books, documents and papers to the Indian insurance company, and shall deliver them to that company or to such person as that company may direct.
- (2)In particular, all the assets of an existing insurer appertaining to the undertaking held in deposit by the Reserve Bank of India under the Insurance Act or by trustees in trust shall be delivered to the Indian insurance company.
- (3)Without prejudice to the other provisions contained in this section, it shall be lawful for each Indian Insurance company to take all necessary steps for taking possession of all properties which have been transferred to and vested in it under this Act.
Summary
- Anyone holding property, books, or documents belonging to an old insurer must hand them over to the new Indian insurance company immediately.
- This rule applies to assets that were transferred to the Indian insurance company under the rules of Section 5.
- Even official bodies holding assets in trust, like the Reserve Bank of India, must deliver those assets to the new company.
- The Indian insurance company has full legal permission to take whatever steps are necessary to take physical possession of these transferred properties.
Practical examples
FAQ
1. Who has to give up the property?
Every person in whose possession, custody, or control the property or documents may be.
2. Does the company have to wait for people to bring the property to them?
No, the law makes it lawful for the Indian insurance company to take all necessary steps to take possession of the properties.
3. What role does the Reserve Bank of India play here?
If the Reserve Bank holds assets of the old insurer in deposit, it is explicitly required to deliver them to the Indian insurance company.
Test yourself
Q1.Under Section 29 of The General Insurance Business (Nationalisation) Act, 1972, what must a person do if they possess books and documents relating to an existing insurer whose business has been transferred?
Q2.Under Section 29 of The General Insurance Business (Nationalisation) Act, 1972, how does the cross-reference to Section 5 explain why the Indian insurance company gets this property?
Q3.Under Section 29 of The General Insurance Business (Nationalisation) Act, 1972, which specific institution is mentioned by name as being required to deliver assets held in deposit?
Q4.Under Section 29 of The General Insurance Business (Nationalisation) Act, 1972, what is the Indian insurance company legally allowed to do if someone does not hand over the property voluntarily?