Section 2. Definitions

2. Definitions. — In this Act, unless there is anything repugnant in the subject or context, — 5[(1) "actuary" means an actuary as defined in clause (a) of sub-section (1) of section 2 of the Actuaries Act, 2006 (35 of 2006); (1A) "Authority" means the Insurance Regulatory and Development Authority of India established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999);] 6[(2) "policy-holder" includes a person to whom the whole of the interest of the policy-holder in the policy is assigned once and for all, but does not include an assignee thereof whose interest in the policy is defeasible or is for the time being subject to any condition ;] 7[(3) "approved securities" means— (i) Government securities and other securities charged on the revenues of the Central Government or of the Government of a[8] * State or guaranteed fully as regards principal and interest by the Central Government, or the Government of any[6] * State ; 2. Sections (2A) and (2B) renumbered as sections (2D) and (2E) thereof by Act 47 of 1950, s. 6 (w.e.f. 1-6-1950). 3. Subs. by Act 62 of 1956, s. 2 the Schedule, for "the States" (w.e.f. 1-11-1956). 4. Subs. by Act 20 of 1940, s. 3, for "insurer" (w.e.f. 10-4-1940). 5. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000). 6. Ins. by Act 6 of 1946, s. 3 (w.e.f. 20-3-1946). 7. The Proviso Added by Act 20 of 1940, s. 3 (w.e.f. 10-4-1940). 8. Subs. by Act 13 of 1941, s. 3, for "such date as may be fixed in this behalf by the Central Government by notification in the official Gazette" (w.e.f. 8-4-1941). 9. The proviso ins. by Act 41 of 1999, s. 30 and the First Schedule (w.e.f. 19-4-2000). 10. Subs. by Act 5 of 2015, s. 6, for sub-section (2) (w.e.f. 26-12-2014). 1[(2A) If, on receipt of an application for registration and after making such inquiry as he deems — fit, the[2] [Authority] is satisfied that (a) the financial condition and the general character of management of the applicant are sound; (b) the volume of business likely to be available to, and the capital structure and earning prospects of, the applicant will be adequate; (c) the interests of the general public will be served if the certificate of registration is granted to the applicant in respect of the class or classes of insurance business specified in the application; and (d) the applicant has complied with the provisions of sections 2C,[3] [5 and 31A] and has fulfilled all the requirements of this section applicable to him, the[2] [Authority] may register the applicant as an insurer and grant him a certificate of registration. 4[(2AA) The Authority shall give preference to register the applicant and grant him a certificate of registration if such applicant agrees, in the form and manner as may be specified by the regulations made by the Authority, to carry on the life insurance business or general insurance business for providing health cover to individuals or group of individuals.] (2B) Where the[2] [Authority] refuses registration, shall record the reasons for such decision and shall furnish a copy thereof to the applicant. 5[(2C) Any person aggrieved by the decision of the Authority refusing registration may, within thirty days from the date on which a copy of the decision is received by him, appeal to the Securities Appellate Tribunal.] 6* * * * * 7[(3) In the case of any insurer having joint venture with a person having its principal place of business domiciled outside India or any insurer as defined in sub-clause (d) of clause (9) of section 2, the Authority may withhold registration already made if it is satisfied that in the country in which such person has been debarred by law or practice of that country to carry on insurance business. (4) The Authority may suspend or cancel the registration of an insurer either wholly or in so far as it relates to a particular class of insurance business, as the case may be, — (a) if the insurer fails, at any time, to comply with the provisions of section 64VA as to the excess of the value of his assets over the amount of his liabilities, or (b) if the insurer is in liquidation or is adjudged as an insolvent, or (c) if the business or a class of the business of the insurer has been transferred to any person or has been transferred to or amalgamated with the business of any other insurer without the approval of the Authority, or 1. Ins. by Act 32 of 1965, s. 2 (w.e.f. 29-9-1965). 2. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000). 3. Subs. by Act 5 of 2015, s. 6, for "5, 31A and 32" (w.e.f. 26-12-2014). 4. Ins. by Act 41 of 1999, s. 30 and the First Schedule (w.e.f. 19-4-2000). 5. Subs. by Act 5 of 2015, s. 6, for sub-section (2C) (w.e.f. 26-12-2014). 6. Sub-section (2D) omitted by s. 6, ibid. (w.e.f. 26-12-2014). 7. Subs. by s. 6, ibid ., for sub-sections (3), (4), (5) and (5A) (w.e.f. 26-12-2014). (d) if the insurer makes default in complying with, or acts in contravention of, any requirement of this Act or of any rule or any regulation or order made or, any direction issued thereunder, or 2. Explanation 2 omitted by Act 41 of 1999, s. 30 and the First Schedule (w.e.f. 19-4-2000). 3. Subs. by Act 5 of 2015, s. 13, for "life insurance business" (w.e.f. 26-12-2014). 4. Subs. by s. 13, ibid ., for "Central Government" (w.e.f. 26-12-2014). 5. Subs. by s. 2, ibid ., for "the Indian Companies Act, 1913" (w.e.f. 26-12-2014). 6. Subs. by s. 13, ibid ., for "High Court" (w.e.f. 26-12-2014). (3) The decision of the[1] [Securities Appellate Tribunal] where an appeal has been preferred to it under sub-section (2), or of the officer aforesaid where no such appeal has been preferred, shall be final and binding on all the shareholders and other persons concerned. 2* * * * * 6C. [ Conversion of company limited by shares into company limited by guarantee.]— Omitted by the Insurance Laws (Amendment) Act , 2015 (5 of 2015), s. 14 ( w.e.f. 26-12-2014). 7. [ Deposits. ]— Omitted by s. 14, ibid . ( w.e.f. 26-12-2014). 8. [ Reservation of deposits. ]— Omitted by s. 14, ibid . ( w.e.f. 26-12-2014). 9. [ Refund of deposit. ]— Omitted by , s. 14, ibid . ( w.e.f. 26-12-2014). (e) if the Authority has reason to believe that any claim upon the insurer arising in India under any policy of insurance remains unpaid for three months after final judgment in regular court of law, or (f) if the insurer carries on any business other than insurance business or any prescribed business, or (g) if the insurer makes a default in complying with any direction issued or order made, as the case may be, by the Authority under the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999), or (h) if the insurer makes a default in complying with, or acts in contravention of, any requirement of the Companies Act, 2013 (18 of 2013) or the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972) or the Foreign Exchange Management Act, 1999 (42 of 1999) or the Prevention of Money Laundering Act, 2002 (15 of 2002), or of the Companies Act, 2013 (18 of 2013) or the General Insurance Business (Nationalisation) (i) if the insurer fails to pay the annual fee required under section 3A, or - (j) if the insurer is convicted for an offence under any law for the time being in force, or (k) if the insurer being a co-operative society set up under the relevant State laws or, as the case may be, the Multi-State Co-operative Societies Act, 2002 (39 of 2002), contravenes the provisions of law as may be applicable to the insurer. (5) When the Authority suspends or cancels any registration under clause (a), clause (d), clause (e), clause (f), clause (g) or clause (i) of sub-section (4), it shall give notice in writing to the insurer of its decision, and the decision shall take effect on such date as it may specify in that behalf in the notice, such date not being less than one month not more than two months from the date of the receipt of the notice in the ordinary course of transmission. (5A) When the Authority suspends or cancels any registration under clause (b), (c), (j) or (k) of sub-section (4), the suspension or cancellation, as the case may be, shall take effect on the date on which notice of the order of suspension or cancellation is served on the insurer.] 1[(5B) When a registration is cancelled the insurer shall not, after the cancellation has taken effect, enter into any new contracts of insurance, but all rights and liabilities in respect of contracts of insurance entered into by him before such cancellation takes effect shall, subject to the provisions of sub-section (5D), continue as if the cancellation had not taken place.] entered into by him before such cancellation takes effect shall, subject to the provisions of 2 [(5C) Where a registration is suspended or cancelled under clause (a), clause (d), clause (e), clause (f), clause (g) or clause (i) of sub-section (4), the Authority may at its discretion revive the registration, if the insurer within six months from the date on which the suspension or cancellation took effect complies with the provisions of section 64VA as to the excess of the value of his assets over the amount of his liabilities or has had an application under sub-section (4) of section 3A accepted, or satisfies the Authority that no claim upon him such as is referred to in clause (e) of sub-section (4) remains unpaid or that he has complied with any requirement of this Act or the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999), or of any rule or any regulation, or any order made thereunder or any direction issued under those Acts, or that he has ceased to carry on any business other than insurance business or any prescribed business, as the case may be, and complies with any directions which may be given to him by the Authority.] 1. Ins. by Act 20 of 1940, s. 3. 2. Subs. by Act 5 of 2015, s. 6, for sub-section (5C) (w.e.f. 26-12-2014). 1[(5D) Where 2[the registration of an insurance company is cancelled under sub-section (4), the 3[Authority] may,] after the expiry of six months from the date on which the cancellation took effect, apply to the Court for an order to wind up the insurance company, or to wind up the affairs of the company in respect of a class of insurance business, unless the registration of the insurance company has been revived under sub-section (5C) or an application for winding up the company has been already presented to the Court. The Court may proceed as if an application under this sub-section were an application under sub-section (2) of section 53, or sub-section (1) of section 58, as the case may be.] 4[(5E) The Authority may, by order, suspend or cancel any registration in such manner as may be determined by the regulations made by it: Provided that no order under this sub-section shall be made unless the person concerned has been given a reasonable opportunity of being heard.] 5* * * * * 6[(7) The Authority may, on payment of such fee, not exceeding five thousand rupees, as may be determined by the regulations, issue a duplicate certificate of registration to replace a certificate lost, destroyed or mutilated, or in any other case where the Authority is of opinion that the issue of duplicate certificate is necessary.] 7[3A. Payment of annual fee by insurer.— (1) An insurer who has been granted a certificate of registration under section 3 shall pay such annual fee to the Authority in such manner as may be specified by the regulations. (2) Any failure to deposit the annual fee shall render the certificate of registration liable to be cancelled.] 8[3B. Certification of soundness of terms of life insurance business.— If, when considering an application for registration under section 3 or at any other time, it appears to the[3] [Authority] that the assured rates, advantages, terms and conditions offered or to be offered in connection with life insurance business are in any respect not workable or sound, it may require that a statement thereof shall be submitted to an actuary appointed by the insurer for the purpose and approved by the[3] [Authority], and may by order in writing further require the insurer to make within such time as may be specified in the order such modifications in the said rates, advantages, terms or conditions, as the case may be, as the said actuary may report to be necessary to enable him to certify that the said rates, advantages, terms and conditions are workable and sound.] 9[4. Minimum limits for annuities and other benefits secured by policies of life insurance. — The insurer shall pay or undertake to pay on any policy of life insurance or a group policy issued, a minimum annuity and other benefits as may be determined by regulations excluding any profit or bonus provided that this shall not prevent an insurer from converting any policy into a paid-up policy of any value or payment of surrender value of any amount.]