Section 35 of The General Insurance Business (Nationalisation) Act, 1972
Subject to such exceptions, restrictions and limitations, if any, as the Central Government may, by notification, specify in this behalf, the Insurance Act shall apply to or in relation to the Corporation and every acquiring company as if the Corporation or the acquiring company, as the case may be, were an insurer carrying on general insurance business within the meaning of that Act.
Summary
- The standard Insurance Act applies to the Corporation and every acquiring company.
- They are legally treated as insurers carrying on general insurance business under that Act.
- The Central Government has the power to create exceptions, restrictions, and limitations to how the Insurance Act applies to them.
- Any such exceptions must be officially published by the Central Government via a notification.
Practical examples
FAQ
1. Do these nationalised companies have to follow the regular Insurance Act?
Yes, they are treated as regular insurers carrying on general insurance business.
2. Can the government change how the Insurance Act applies to them?
Yes, the Central Government can specify exceptions, restrictions, and limitations.
3. How does the government announce these special exceptions?
By publishing a formal notification.
Test yourself
Q1.Under Section 35 of The General Insurance Business (Nationalisation) Act, 1972, which major piece of legislation is applied to the Corporation and acquiring companies?
Q2.Under Section 35 of The General Insurance Business (Nationalisation) Act, 1972, who has the authority to specify exceptions to the application of the Insurance Act?
Q3.Under Section 35 of The General Insurance Business (Nationalisation) Act, 1972, how must the Central Government formally announce any restrictions or limitations?
Q4.Under Section 35 of The General Insurance Business (Nationalisation) Act, 1972, how does the Insurance Act categorize the Corporation and acquiring companies?