Section 30 of The General Insurance Business (Nationalisation) Act, 1972
If any person wilfully withholds or fails to deliver to an Indian insurance company as required by section 29 any property or any books, documents or other papers which may be in his possession or unlawfully retains possession of any property of an existing insurer which has been transferred to and vested in an Indian insurance company under section 5 or wilfully applies any such property to purposes other than those expressed in or authorised by this Act, he shall, on the complaint of the Indian insurance company, be punishable with imprisonment for a term which may extend to one year, or with fine which may extend to one thousand rupees, or with both.
Summary
- It is a crime to intentionally keep property or documents that belong to the new Indian insurance company.
- It is also a crime to use the transferred property for anything other than what the law allows.
- If convicted, a person can be sent to prison for up to one year, fined up to one thousand rupees, or face both punishments.
- A criminal case can only start if the Indian insurance company officially files a complaint.
Practical examples
FAQ
1. What is the worst punishment for keeping company property?
You could go to prison for up to one year and pay a fine.
2. Can the police arrest someone for this without the company knowing?
No, the punishment happens "on the complaint of the Indian insurance company", meaning the company must be the one to start the process.
3. Is it a crime if I accidentally keep a document?
The law specifies "wilfully withholds", meaning it must be done intentionally to be punished under this section.
Test yourself
Q1.Under Section 30 of The General Insurance Business (Nationalisation) Act, 1972, what is the maximum prison sentence for unlawfully retaining company property?
Q2.Under Section 30 of The General Insurance Business (Nationalisation) Act, 1972, what is the maximum fine a person can receive for withholding documents?
Q3.Under Section 30 of The General Insurance Business (Nationalisation) Act, 1972, an individual is facing prison time for refusing to deliver property. Based on the cross-references, how do Sections 5 and 29 work together to make this person a criminal under Section 30?
Q4.Under Section 30 of The General Insurance Business (Nationalisation) Act, 1972, who must initiate the legal action against the person withholding the property?