 the insurance (amendment) bill, 1961( as introducid in lo1t sabra on 14th february, ig6i)  the insurance (amendment) bill, l¢i (as introduced in lok saiiha) a billfurther to amend the insurance act, 1938 be it enacted by parliament in the twelfth year of the republic of india as follows:-1 this act may be called the insurance (amendment) act, 1961 soolt tide 4 of 1938 2 after part iv of the insurance act, 1938 (hereinafter referred inlcltion of s to as the principal act), the following part shall be inserted,· new part namely:- 'part iva - re-insuranceto lola (1) every insurer shall re-insure with indian re-insur- rc-insutancc ers such percentage of the sum assured on each policy as may wit~ indian re-insurers be specified by the central government under sub-section (2) (2) for the purposes of !,ub-section (1), the central government may, by notification in the official gazette,-is - (a) specify the percentage cf the sum assured on each policy to be re-insured and different percentages may be specified for different classes of insurance: provided that no percentage so specified shall exceed thirty per cent of the sum assured on such policy; and 20 (b) also specify the proportions in which the said percentale shall be allocated among the indian re-insurers (3) no notification under sub-section (2) shall be issued except after consultation with the advisory committee constituted under section 101b (4) every notification issued under this section shall be laid before each house of parliament, as soon as may be, after 5 it is made (5) for ~he removal of doubts, it is hereby declared that nothing in sub-section (1) shall be construed as preventing an insurer from re-insuring with any indian re-insurer or other insurer the entire sum assured on any policy or any portion 10 thereof in excess of the percentage specified under sub-section (2) (6) in this section,-(i) "policy"· means a policy issued or renewed on or after the 1st day of april, 1961, in respect of general insur- j s ance business transacted in india and does not include a re-insurance policy; and (ii) "indian re-insurer" means an insurer specified in sub-clause (b) of clause (9) of section 2 who carries on exclusively re-insurance business and is approved in this 20 behalf by the central government advilofy committcc 1018, (1) the central government shall, for the purposes of section lola, constitute an advisory committee codsistin~ 0" not more than five persons havin, special knowled,e and experience of the business of insurance, (2) the tenn of office of, and the allowances payable to, members of the advisory committee, the procedure to be f,llowed by, and the quorum necessary for the transaction of business of, the committee and the manner of filling casual vacancies therein shall be such as may be prescribed' 30  3 in section 114 of the principal act,-(i) in sub-section (2), after clause (1), the following clause shall be inserted, namely:-"(ll) the term of office of, and the allowances payable to, members of the advisory committee constituted under 3s section 10tb, the procedure to be followed by, and the quorum necessary for the transaction of business of, the-committee and the manner of filling casual vacancies therein;"; (ii) for sub-aection (3), the following sub-section shall be substituted, namely:-•• (3) every rule made under this section shall be laid as soon as may be after ~t is made, before each house of parliament while it is in session for a total period of thirty days which may be comprised in one session or in two successive sessions, and if before the expiry of the session in which it is so laid or the session immediately following, both houses agree in making any modification in the rule or 10 both houses agree that the rule should not be made, the rule shall, thereafter, pave effect only in such modified fo~, or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to th~ validity of anything previously done under that l'\11~:·  statement of objects and reasonsre-insurance is an essential part of general insurance business at present insurance companies operating in india are dependent on companies outside india for a very large part of their requirements in this connection and more often than not enter into disadvantageous arrangements moreover re-insurance with companies outside india results in the loss of foreign exchange the present bill is intended to foster the growth of indian re-insurance companies and also to save foreign exchange 2 the bill seeks to provide that every insurance company operating in india must re-insure a certain percentage of its business with indian re-insurance companies approved in this behalf by the central government power is being conferred on the central government to fix this percentage but this power will be exerciseable only after consultation with the advisory committee constituted of five persons having specialised knowledge and experience in insurance business power is also being conferred on the central government to allocate the percentage so fixed amongst the approveel indian re-insurance companies new delhi; morarji desai tjte 3rd february, 1961  financial memorandul4the proposed jection 101b (1) sought to be inserteclby clause 2 of the bill contemplates the constitution of an advisory committee consisting of not more than five persons travelling allowance and daijy allowance will have to be paid to the members of the com mittee for purpcses of attending the meetings of the committee it is not possible to indicate the exact amount of expenditure involved but it is not expected to exceed rs 4,000, per year  clauae··3 am~ ~ 114 of the idiul'8de8~t, 1838 10 as·to enable the' central government to make rules regarding the terms of~ office of the members of the advisory committee to be constituted under clause 2 of the bill 'the procedure of its meetings, the manner of alling·casual vacancies, the quorum necessary for a meetlrlg and a11owan~ payable to its members all theae matters are matters of procedure ql" "tail   the delegation of power is thus of a normal character - - pvwcr of ceaml goy-cl'rmajl to make rules  - '" '" '" '" - 114 - - - '" - - - - - - '" - (3) every rule made under this section shall be laid as loon as may be after it is made before the house of the people, while it is in session, f,or 8 total period of one month which may be comprised in one session or in two or more sessions, and if before the expiry of that period the house of the people makes any modification in the rule or directs that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, 8s the case may be '" '" '" '" '" '" -  lok sabhaa bill further to amend the insulance act, 1938 the president has in pursuance of clause (3) of aitlclc 117 of the constitution of india, recommended to lok sabha the consideration of the bill - m n kaul secretary (shri morarji desai,   \!uris'er oj fim",ce) - 