Section 3 of The General Insurance Business (Nationalisation) Act, 1972
In this Act, unless the context otherwise requires,
- (a)acquiring company means any Indian insurance company and, where a scheme has been framed involving the merger of one Indian insurance company in another or the amalgamation of two or more such companies, means the Indian insurance company in which any other company has been merged or the company which has been formed as a result of the amalgamation;
- (b)appointed day means such day not being a day later than the 2nd day of January, 1973, as the Central Government may, by notification, appoint; 1[(ba) “board of directors” or “board”, in relation to a specified insurer, shall have the same meaning as assigned to it in clause (10) of section 2 of the Companies Act, 2013 (18 of 2013);]
- (c)Companies Act means 2[the Companies Act, 2013 (18 of 2013)];
- (d)Corporation means the General Insurance Corporation of India formed under section 9;
- (e)existing insurer means every insurer the management of whose undertaking has vested in the Central Government under section 3 of the General Insurance (Emergency Provisions) Act, 1971 (17 of 1971), and includes the undertaking of the Life Insurance Corporation in so far as it relates to the general insurance business carried on by it;
- (f)foreign insurer means an existing insurer incorporated under the law of any country outside India; 3[(g) “general insurance business shall have the same meaning as assigned to it in the Insurance Act, 1938 (4 of 1938);]
- (h)Government company means a Government company as defined in 4[ clause (45) of section 2] of the Companies Act;
- (i)Indian insurance company means an existing insurer having a share capital who is a company within the meaning of the Companies Act;
- (j)Insurance Act means the Insurance Act, 1938 (4 of 1938);
- (k)Life Insurance Corporation means the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956 (31 of 1956);
- (l)notification means a notification published in the Official Gazette;
- (m)prescribed means prescribed by rules made under this Act;
- (n)Schedule means the Schedule to this Act;
- (o)scheme means the scheme framed under section 16 5[and also includes a scheme framed under section 17A;] 6[(oa) “specified insurer” means the Corporation as defined in clause (d) or any of the insurance companies specified in section 10A;]
- (p)words and expressions used in this Act but not defined herein and defined in the Insurance Act, shall have the meanings respectively assigned to them in that Act;
- (q)words and expressions used in this Act but not defined herein or in the Insurance Act and defined in the Companies Act, shall have the meanings respectively assigned to them in the Companies Act.
Summary
- This provision defines key terms used throughout the law to avoid confusion.
- It sets a deadline called the appointed day, which cannot be later than January 2, 1973.
- It clarifies that a foreign insurer is one incorporated outside India.
- It links the Corporation to the General Insurance Corporation of India, which is formed under another section.
Practical examples
FAQ
1. What is the latest date the appointed day can be?
It cannot be later than the 2nd day of January, 1973.
2. What does Corporation mean in this law?
It means the General Insurance Corporation of India.
3. How does the law define an Indian insurance company?
It means an existing insurer with share capital that is a company under the Companies Act.
4. Are life insurance functions included in these definitions?
The Life Insurance Corporation is mentioned, but only regarding the general insurance business it carries on.
Test yourself
Q1.Under Section 3 of The General Insurance Business (Nationalisation) Act, 1972, what is the absolute latest date the Central Government could pick for the appointed day?
Q2.Under Section 3 of The General Insurance Business (Nationalisation) Act, 1972, which cross-references Section 9, how does the Act define the term Corporation?
Q3.Under Section 3 of The General Insurance Business (Nationalisation) Act, 1972, what makes an existing insurer qualify as a foreign insurer?
Q4.Under Section 3 of The General Insurance Business (Nationalisation) Act, 1972, if a term is used in this Act but is not defined in Section 3, where should a reader look first for its meaning?