Section 58. Scheme for partial winding up of insurance companies

58. Scheme for partial winding up of insurance companies. — (1) If at any time it appears expedient that the affairs of an insurance company in respect of any class of business comprised in the undertaking of the company should be wound up but that any other class of business comprised the undertaking should continue to be carried on by the company or be transferred to another insurer, a scheme for such purposes may be prepared and submitted for confirmation of the[3] [Tribunal] in accordance with the provisions of this Act. (2) Any scheme prepared under this section shall provide for the allocation and distribution of the assets and liabilities of the company between any classes of business affected (including the allocation of any surplus assets which may arise on the proposed winding up), for any future rights of every class of policy-holders in respect of their policies and for the manner of winding up any of the affairs of the company which are proposed to be wound up and may contain provisions for altering the memorandum of the company with respect to its objects and such further provisions as may be expedient for giving effect to the scheme. (3) The provisions of this Act relating to the valuation of liabilities of insurers in liquidation and insolvency and to the application of surplus assets of the life insurance fund in liquidation or insolvency shall apply to the winding up of any part of the affairs of a company in accordance with the scheme under this section in like manner as they apply in the winding up of an insurance company, and any scheme 1. The Words "or under the supervision of the Court" omitted by Act 11 of 2003, s. 133 and the Schedule (w.e.f. 1-4-2003). 2. Subs. by s. 133 and the Schedule [serial no. 6(b)], ibid ., for "Court" (w.e.f. 1-4-2003). 3. Subs. by s. 133 and the Schedule (serial no. 7), ibid ., for "Court" (w.e.f. 1-4-2003). under this section may apply with the necessary modifications any of the provisions of[1] [the Companies Act, 2013 (18 of 2013)] relating to the winding up of companies. 2[(4) An order of the Tribunal confirming a scheme under this section whereby the memorandum of a company is altered with respect to its objects shall as respects the alteration have effect as if it were an order confirmed under section 4 of the Companies Act, 2013 (18 of 2013), and the provisions of sections 7 and 17 of that Act shall apply accordingly.] 3* * * * *] 59. [ Return of deposits ].— Omitted by the Insurance Laws (Amendment) Act 5 of 2015, s. 68 (w.e.f. 26-12-2014). — 60. Notice of policy values. In the winding up of an insurance company for the purposes of a cash distribution of the assets and in the insolvency of any other insurer the liquidator or assignee as the case may be in the case of all persons appearing by the books of the company or other insurer to be entitled to or interested in the policies granted by the company or other insurer shall ascertain the value of the liability of the company or other insurer to each such person and shall give notice of such value to those persons in such manner as the[4] [Tribunal] may direct and any person to whom notice is so given shall be bound by the value so ascertained unless he gives notice of his intention to dispute such value in such manner and within such time as may be specified by a rule or order of the[4] [Tribunal].