Section 2D. Insurers to be subject to this Act while liabilities remain unsatisfied

PART II PROVISIONS APPLICABLE TO INSURERS 7 [2C. Prohibition of transaction of insurance business by certain persons. — (1) Save as hereinafter provided, no person shall, after the commencement of the Insurance (Amendment) Act, 1950 (47 of 1950), begin to carry on any class of insurance business in[8] [India] and no insurer carrying on any class of insurance business in[8] [India] shall after the expiry of one year from such commencement, continue to carry on any such business unless he is— (a) a public company, or (b) a society registered under the Co-operative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any State relating to co-operative societies, or 1. Subs. by Act 5 of 2015, s. 3 for "clauses (13) and (13A) of section 2 of the Indian Companies Act, 1913 (7 of 1913)" (w.e.f. 26-12-2014). 2. Ins. by s. 3, ibid. (w.e.f. 26-12-2014). 3. Clause (17) omitted by s. 3, ibid. (w.e.f. 26-12-2014). 4. Ins. by Act 41 of 1999, s. 30 and the Fifth Schedule (w.e.f. 19-4-2000). 5. Ins. by Act 47 of 1950, s. 5 (w.e.f. 1-6-1950). 6. Subs. by Act 41 of 1999, s. 30 and the Fifth Schedule, for sub-section (1) (w.e.f. 19-4-2000). 7. Ins. by Act 47 of 1950, s. 6 (w.e.f. 1-6-1950). 8. Subs. by Act 62 of 1956, s. 2 the Schedule, for "the States" (w.e.f. 1-11-1956). (c) a body corporate incorporated under the law of any country outside[1] [India] not being of the nature of a private company : Provided that the Central Government may, by notification in the Official Gazette, exempt from the operation of this section to such extent for such period and subject to such conditions as it may specify, any person or insurer for the purpose of carrying on the business of granting superannuation allowances and annuities of the nature specified in sub-clause (c) of clause (11) of section 2 or for the purpose of carrying on any general insurance business : Provided further that in the case of an insurer carrying on any general insurance business no such notification shall be issued having effect for more than three year at any one time. 2[Provided also that no insurer other than an Indian insurance company shall begin to carry on any class of insurance business in India under this Act on or after the commencement of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999).] 3[Provided also an insurer, being an Indian Insurance Company, insurance co-operative society or, a body corporate referred to in clause (c) of this sub-section carrying on the business of insurance, may carry on any business of insurance in any Special Economic Zone as defined in clause (za) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005).] (2) Every notification issued under sub-section (1) shall be laid before Parliament as soon as may be after it is issued.] 4[(3) Notwithstanding anything contained in sub-section (1), an insurance co-operative society may carry on any class of insurance business in India under this Act on or after the commencement of the Insurance (Amendment) Act, 2002 (42 of 2002).] 5 [2CA. Power of Central Government to apply provisions of this Act to Special Economic Zones. —The Central Government may, by notification, direct that any of the provisions of this Act, — (a) shall not apply to insurer, being an Indian Insurance Company, insurance co-operative society or a body corporate referred to in clause (c) of sub-section (1) of section 2C, carrying on the business of insurance, in any Special Economic Zone as defined in clause (za) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005); or (b) shall apply to any insurer, being an Indian Insurance Company, insurance co-operative society or a body corporate referred to in clause (c) of sub-section (1) of section 2C, carrying on the business of insurance, in any Special Economic Zone as defined in clause (za) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005) only with such exceptions, modifications and adaptations as may be specified in the notification.] 1. Subs. by Act 62 of 1956, s. 2 the Schedule, for "the States" (w.e.f. 1-11-1956). 2. The proviso ins. by Act 41 of 1999, s. 30 and the First Schedule (w.e.f. 19-4-2000). 3. The proviso ins. by Act 28 of 2005, s. 57 and the Third Schedule (w.e.f. 10-2-2006). 4. Ins. by Act 42 of 2002, s. 3 (w.e.f. 23-9-2002). 5. Ins. by Act 28 of 2005, s. 57 and the Third Schedule (w.e.f. 10-2-2006). [1] [2CB. Properties in India not to be insured with foreign insurers except with the permission of Authority. —(1) No person shall take out or renew any policy of insurance in respect of any property in India or any ship or other vessel or aircraft registered in India with an insurer whose principal place of business is outside India save with the prior permission of the Authority. (2) If any person contravenes the provision of sub-section (1), he shall be liable to a penalty which may extend to five crore rupees.] 2[ 2D. Insurers to be subject to this Act while liabilities remain unsatisfied. — Every insurer shall be subject to all the provisions of this Act in relation to any class of insurance business so long as his liabilities in[3] [India] in respect of business of that class remain unsatisfied or not otherwise provided for.