the life insurance corpobations bru, 1983 (to be/as introduc:ed in wk sabha) 1 r~bi! in the marginal beading to clause 7,-for tlcondtionb" read "conditionsll 2 page 7,-in the marginal heading to clause 13,-£q! "const tute" read "constjtute" -3  page 1 f), l:lne 32,-for "end" read "and" 4  page 11, line 1 ,-for 11 pro cedul'ems " read " ,pl'ocerlu l'~r n page 12, line 15,-for "territoral" read "territorial" 6 page 13, line 6,-after it maturity " insert "claim" 7 - page 13, lir 10,-8 rap,6 13, line 36,-:t:or i!deah" read "death" 9 page 19,-against line' 25, in t:- it $i)rgiil,-for ii~ of 198oj' read "5 of 1908!' 10 page 21,-in thf; marg:i n~l l'l,l::vfug· to ~lause 47,-(1) for "privi lagcn read 1\ l)rj~ji 1 pfr,u't  -(li) for "qusiness ii ~ "business" 11 page 30,-in the marginal h~ading to clause 67,-for tlruls" read "rules" 12 pal;); 33, line 4=:, l~~~·jl·l "amongst",-for "corporations" read tlcorporationti 13 pagl; 36,-in th(;: marginal he~ing to para~ 6,-for "dissovltd 11 read "dis solved ii 14 page 36, line 43,-for "divisionll read "1ivisions" 15 pagb 38, line 6 from bottom,-for "settlet:l(;nts" re:nrj "settlement" 16 page 46, line 2,-for "clause" read ifclaus~ 5" 17 page 46, line 5 from bottom,-for "rs lakhs" read "lis 5 lakhs" 18 page 48, line 4 from bottom,-for "provffidcd" re~d "provided" ~ delhi; november 11, 1983 k::r~ika 20, 1905 cscltat  arrangement of clauses chapter i prfumlnary clauses1 shorl title and commencement 2 definitions 3 dissolution of ufe insurance corporation of india and repeal  chapter ii establishment o} life insurance corporations and their capital4 establishment of life insurance corporations 5 capital 6 constitution of corporations 7 term of office and conditions of service of chairman and other members 8 disqualifications and removal  chapter iii functions of lin: insurance corporations9 functions of each corporation 10 power to impose conditions, etc  chapter iv management11 head office and other offices of each corporation 12 chairman to be the managing director 13 power of each corporation to constitute committees 14 power to appoint executlve directors, etc,  chapter v tile life insurance board15 constitution of the life insurance board 16 conditions of service of members of the board 17 committees of the board  clauses18 meetings of the board 19 secretary and other staff of the board 20 functions of the board 21 finances of the board  chapter vi constitution of tribunals22 power of central government to constitute claims tribunals 23 territorial limits of the jurisdiction of a claims tribunal 24 applications to claims tribunals 25 benches of claims tribunal 26 orders of claims tribunals 27 power of central government to constitute an appella~e claims tribunal 28 appeals to the appellate claims tribunal ~ order of the appellate claims tribunal 30 benches of the appellate claims tribunal 31 power of central government to constitute service matters tribunals 32 redressal of the grievance with respect to service matters 33 benches of service matters tribunal 34 orders of service matters tribunals  chapter vii provisions apl'licable to all tribunals35 powers of tribunals to enforce attendance of witnesses and to regulate their own procedure 36 proceedings before tribunals to be judicial proceedings for certain purposes 37 procedure where the members of a tribunal differ in their opinion 38 method of determination of equivalent rank 39 costs  chapter vin finance, accounts and audit40 funds of corporations 41 audit 42 actuarial valuations 43 annual report of activities of corporations and the boanl  clauses44 surplus from life insurance business huw to de utilised 45 profits from any business (other than life insurance business) how to be utilised 46 reports to be laid before parliament  chapter ix miscellaneous47 corporations to have exclusive privilege of carrying on life insurance business 48 exceptions in the case of life insurance business in respect of persons ordinarily residing o'utside india 49 powers of corporations to have official seals in certain cases 50 policies of life insurance to be guaranteed by central government 51 liquidation 52 penalty for carrying on life insurance business in contravpntioa of the provisions of this act 53 penalty for withholding property, etc 54 offences by companies 55 bar of jurisdiction of civil courts 56 enforcement of decisions and orders of tribunals 57 application of the insurance act 58 deduction of income-tax not to be made on intej:est or dividend 59 act not to apply in certain cases 60 defects in constitution of a corporation or the board or of any tribunal not to invalidate acts or proceedings 61 protection of action taken under the act 62 employees to be deemed to be public servants 63 disqualification for appointment as insurance agent 64 employees not to take active part in politics 65 power to make rules 66 power to make regulations 67 notifications, rules and regulations to be laid before parliameat 68 act to override all other enactments, etc 69 power to remove difficulties 70 savings the first schedule the second schedule  billto provide, with a view to the more e11ective realisation of the objectives oj nationalisatfbn of life insurance busineb8, for vhe dissolution 01-the life insurance corporation of india and for the estabushment of a number of corporations for the more efficient carrying on of the said business and for matters connected therewith ot incidentttb thereto wuereas the nationalisation of life insurance business in india was made by the life insurance corporation act, 1956 by transferring all such business to the life insurance corporation of india established under section 3 of that act; !l and wliereas for the more effective realisation of the objectives of such nationalisation, it is necessary to dissolve the said corporation and establish, in its place, a number of corporations for the more efficient <!arrying on of the said business; bb it enacted by parliament in the thirty-fourth year ot the republic 10 of india as follow1:- chapi'er i prl:liminaby1 (1) this act may be called the life insurance corporations act, 1003 15 (2) it shall come into force on such date as the central government may, by notification in the official gazette, appoint z in this act, unless the context otherwise requires,-definitions (a) "appellate claims tribunal" means the appellate claiml tribunal constituted under section 27; (b) ·'appointed day" means the date on which this act comes into force; 5 (e) "board" means the life insurance board constituted under section 15; (d) "claims 'rribunal" means a claims tribunal constituted under section 22; (e) "corporation" means a life insurance corporation est~b- 10 hshed under sub-section (1) of section 4; (f) "dissolved corporation" means the life' insurance corporation of india which shall stand dissolved by virtue of section 3; (g) "insurance act" means the insurance act, 1938; 4 of 1931 (11) "life insurance act" means the life insurance corporation 15 act, 1956; 31 of 1956 (i) "notification" means a notification published in the official vazette; (j) "policy of life insurance" means a contract of insurance upon human life and includes any other con~ract, the business of 20 effecting whereof constitutes life insurance business in accordance with the provi'sions of clause (11) of section 2 of the insurance act; (k) "prescribed" means prescribed by rules made under this act; (0 "service matters tribunal" means a service matters tribu- 25 nai constituted under section 31; (m) words and expressions used in this act but not defined herein and defined in the insurance act shall have the meaning:; respectively assigned to them in the insurance act 3 (1) on the appointed day, subject to the other provisions of this ~o act, the life insurance corporation of india established under section 3 of ·the life insurance act shall stand dis'solved and the said act shall stand repealed ~ (2) the capital provided to the dissolved corporation by the central government, and the officers other employees and insurance agents 35 of, and the assets, rights and liabilities of, the dissolved corporation immediately before the appointed day, and all other matters relating to the said corporation, shall be dealt with in accordance with the provisions of the first schedule  chapter ii l!;stabllshment of life insurance corporations and their capital4 (1) there shall be established with eft'ect from the appointed day, the following life insurance corporations, namely:-establisbment or life insurance corporations (i) the central life insurance corporation of india, with its head office at kanpur; 45 (14) the eastern life insurance corporation of india, with it head office at calcutta (iii) the northern life inl'lurance corporation of india, with its head office at delhi; (iv) the southern life insurance corporation of india, with iots head office at madras; 5 (v) the western life insurance corporation of india, with its head office at bombay (2) each corporation shall be a body corporate having perpetual succession and a common seal with power, subject to the provisions of this act, to acquire, hold and dispose of property, and ito contract, and may by 10 its name sue and be sued 5 (1) the authorised capital of each corporation shall be rupees five capital crores (2) the sum 0·[ rupees one crore which, by virtue of paragraph 2 of the first schedule, becomes transferred to each corporation shall be j:1 deemed to be the paid-vp capital provided to such corporation by the central ciovernment (3) the central governmeat may, on the recommendation of a corporation, increase or reduce the paid-up capital of such corporation to such extent and in such madder as that government may determine, 20 so, however, that the amount of the paid-up capital _hall not be so increased as to exceed the authorised capital thereof constitution or c0rporations g (1) each corporation shall consist of such number of members, not exceeding sixteen, as the central government may think fit to appoint thereto, and one of them shall be appointed by the central gov-25 ernment to be the chairman thereof (2) before appointing a person to be a member of a corporation,  the central government shall satisfy itself that such person will have no such financial or other interest as is likely to affect prejudicially the exercise or performance by him of his functions as a member of that ~ll) corporation, and the central government shall also satisfy itself, from time to time, with respect to every member of a corporation that he has no such interest; and any person who is, or whom the central government proposes to appoint as, and who has consented to be, a member gf a corporation shall, whenever required by the central government 35 so to do, furnish to it such information as that government may consider necessary for the performance of its duties under this sub-section (3) a member of a corporation who is in any way directly or indirectly interested in a contract made or proposed to be made by that corporation shall, as soon as possible after the relevant circumstances 40 have come to his knowledge, disclose the nature of his interest in the contract to the corporati'on; and such member shall not take part in any deliberation or discussion of the eorporation with respect to that contract (4) it is hereby declared that for the purposes of sub-section (1), 45 any person holding the office of an executive director of a corporation may be appointed as a member of such corporation and on such appointment such person shall function as a member of the corporation in addition to his duties as an executive director 7 (1) the chairman and other members of a corporation (except where any person is appointed as an ex officio member thereof) shall hold office {or such term, not being less than three years, as may be prescribed, and shall be eligible for reappointment for a like term members (2) a casual vacancy arising from the death, resignation or other-5 wise of a member of a corporation may be filled up by the fresh appointment of a person as a member of the corporation and the person so appointed to fill the vacancy shall hold office for the remainder of the term of office of the member in whose place he is appointed (:1) if the chairman or any other member of a corporation is, for 10 infirmity or otherwise, incapable of carrying o11;t his duties or is absent on leave, the central governmen~ may appoint another person to act in his place for the period during which such chairman or other member is unable to carry out his duties or is absent on ·leave (4) the chairman of a corporation shall be entitled to receive such 15 salary and allowances, and shall be subject to such conditions of service in respect of leave, pension, provident fund and other matters, as may be prescribed and the other members of a corporation shall be entitled to such allowances as may be prescribed 8 (1) no person shall be eligible to be appointed, or to continue, as 20 a member of a corporation, or of the board, who-- disqualifi· catiooa and rmovaj(a) is, or at any time has been, adjudicated as insolvent or has suspended payment of his debts or has compromised with his creditors; or (b) is of upsound mind and stands so declared by a competent 25 court, or (c) is or has been, convicted of an offence which, in the opinion of the central government, involves moral turpitude or (d) is, or at any time has been, convicted of an offence under w~aclm ~ (e) has so abused, in the opinion of the central government, his position as a member of the corporation or of the board~ as to render his continuance as such member, detrimental to the interests of the corporation or of the board as the case may be (2) the central government shall, by order in writing, remove from 35 office any member of a corporation or of the board who is, or has become, subject to any disqualification specified in sub-section (1): provided that no such removal shall be made unless the member concerned has been given a reasonable opportunity of showing cause against the proposed action 40 ~3) notwithstanding anything contained in sub-section (i), or subsection (2) ,-(a) the central government may terminate the appointment of the chairman of a corporation after giving him notice in writing of not less than three months without assigning any reason; 45 (b) the chairman of a corporation may resign his ofllce by g:ving notice to the central government in writing of not less than three months without assigning any reason  chapter iiifunctions of life insurance corporations t (1) ~ubjec~ to the rules, if any, made by the central government in this behalf, and the o~her provisions of this act, it shall be the general duty of each corporation to carry on life insurance busineu, whether in or outside india, and each such corporation, shall-10 (a) be primarily responsible for the intensive development of life insurance business within the zone, and, in particular in the divisions within the zone, specified, or deemed to be speclfted, in the corresponding entries against its name in the second schedule; and 15 (b) so exercise its powers under this act as to secure that ute insurance business is developed to the best advantage of the com  munity ezplan4tion i-for the purposes of this sub-section and of seet:lon 11, "zone" means a zone specified in the life insurance corporation ao regulations, 1959, as in force immediately before the appointed clay and "division" means a division specified against a zone in the correspond  ing entry in column iii of the second schedule, and includes such other division as may be established, within a zone, after the appointed day, and on such establishment such division shall be deemed to be included as in the corresponding entry in column iii of the second schedule ezplanation ii-the territorial limits of each division specified in column iii of the second schedule shall, until they are duly altered under this act, be such as were specified, immediately before the appointed day, by the dissolved corporation, and the territorial limits so of any division established after the appointed day shall be inch 88 may be specified by the concerned corporation (2) without prejudice to the generality of the foregoing provisions ot this section, but subject to the other provisions of this act, each cor  poratlon shall have power-35 (a) to carry on capital redemption business, annuity certain business or reinsurance business in so far as such reinsurance bus!  ness appertains to life insurance business; (b) subject to the rules if any, made by ithe central govern  ment in this behalf, to invest the funds of the corporation in such fo manner as the corporation may think fit and to take all such steps as may be necessary or expedient for the protection or realisation of any investment, including the takin~ over of, and administering ally property offered as securitv for the inves~ment until •• ulbble opportunity arises for its dispobat; " (c) to aequire, hold and dispose of any property for the ftw'poi8 "t!lfita business; (ii) to transfer the whole or any part of the lif mluhliee 'buliness" earned on by it outstne india to aj'ly other m1'son or 1'm'-iofti if in the interest of the corporation it is expediet 10 te 40; (e) to advance or lend money upon the security of any movable or immovable property or otherwise; (t) to borrow or raise any money in such manner and upon such security as the corporation may think fit; (g) to carry on any other buslneu in any case where iuch other 5 business was being carried on, immediately before the appointed day, by the dissolved corporation; (fl) to carryon, with the prior approval of the central government any other business which may seem to the corporation to be , capable of being conveniently carried on in connection with its bust· 10  ness and calculated directly or indirectly to render profitable the business of the corporation; (i) to do ~ such things u may be incidental, or conducive, to the proper exercise of any of the powers of the corporation (3) in the discharge of any of its functions, each corporation shad 15 act, 80 far as may be, on business principles (4) each corporation shall in the discharge of its functions under this act, be guided by such directions in matten of policy involving pub-hc interest as the central government may give to it in writing; and if any ques~ion arises whether a direction relates to a matter of poucy 110 involving public interest, the decision of the central government thereon shan be final - 10 (1) in entering into any arrangement with any concero, a corporation may impose such conditions as it may think necessary or expedient for protecting the interest of that corporation and for 115 ensuring that the accommodation granted by it fa put to the best uie by the concern (2) where any arrangement entered into by a corporation with any concern provides for the appointment by that corporation of one or more directors of such concern, such provision and any so appoin~ment 'of directors made in pursuance thereof shall be valid and effective notwithstanding anythinr to the contrary contained in the companies act, 1956, or in any other law for the time befng in foree or 1 ~ l_ in the memorandum articles of association or any o~her instrument relating to the concern, and any provision relfbrdtng share qualification, s5 age limit, number of dfrectorshlps, removal from oftlee of directors and such like conditions contained in any such law or instrument, shall not apply to any director appoijlted by the corporation in pursuance of the arrangement as aforesaid (3) any director appointed u aforesaid,-(a) shall hold office during the pleasure of the c011)oration by which he was so appointed and may be remeved, or substituted by any other person, by order in writing by that corporation; (b) shall not incur any oblf~ation or liability by realon only of his being a director or for anything done or omitted to be done in 45 good faith in the discharge of hib dutfe8 a •• director or for adythm -  done in relation thireto; (e) shall not be uable to retirement by r?tation and the exist-ence of such director shall not be taken into account while computing the number of directors liable to such retirement  chapl'er iv5 managemdn' ll (1) the head oftlce of each corporation shall be at the place specified in relation to it in section 4 (2) each corporation may establish as many divisional offices, branches :md other offices within the zone specified against its name in 10 the second schedule as it may think fit: - provided that a corporation may establish, with the previoul approval of the central government, any divisional oftice, branch oftice or other oftice at any place outside the zone specified against it in the second schedule 1$ j2 (1) the chairman of a corporation shall be the managing director thereof and shall, subject to such general or special directions as the corporation or the executive committee constituted under sub-section (1) of section 13, may from time to time give, exercise all such powers ai may be exercised, and do all s'\1ch acts and things as may be done, by 80 the corporation (2) the chairman of a corporation shall be the president of each committee of the corporation constituted undei: section 13 and shall, in hi capacity as the managing director of the corporation, carry out the advice of the investment committee, constituted under sub-section 15 (2) of section 13, in regard to investments of the funds of the corporation: provided that it shall be open to the chairman to reserve the question of any such advice on any particular item, for consideration by the corporation so is (1) each corporation may constitute an executive committee consisting of its chairman and not more than six and not less than four of its other members and may entrust to that committee the general superintendence and the direction of the affairs and business of the corporation and the executive committee 80 constituted may exercise s~ all the powers and do all such acts and things, as may be delegated to it by the corpora:ion by which it is constituted (2) each corporation may also constitute an investment commit tee for the purpose of advising it in matters relating to the invesf;ment of its funds, and the investment committee shall consist of the chair-40 man of the corporation and not more than eight and not less than six other members of whom not less than four shall be members of that corporation and the remaining members shall be persons (whether \ members of that corporation or not) who have special imowledge ot, and experience in, financial matters, particularly matters relating to ,~ investment of funds (3) each corporation may constitute such other committees u it ljl8y think fit for the purpoae of diseharglnl such of its functions u may m dele,ated to them (4) the members ot a committee constituted under thie teetlod, other than the members of the concerned corporation, shall be paid such fees and allowances as may be prescribed, for attending its meetinga and tor any other work of the corporation (5) a committee to which any powers or functions are delegated 5 under this section by any corporation shall exercise those powers or discharge those functions in the same manner and with the same effect  if they had been conferred on such committee directly by this aet and not by way of delegation 14 (1) each corporation may, with the approval of the central gov- 10 ernment, appoint one or more persons to be the executive directors ot the corporation, and every exec'utive director so appointed shall be a whole-time officer of the corporation (2) every executive director shall exercise such powers and perform such duties, as may be entrusted or delegated to him by the ex8- 15 cu~ive committee or the corporation (3) subject to the rules, if any, made by the central government in this behalf, each corporation may also employ a secretary and such number of other officers and employees as may be necessary for the pur--pose of enabling it to discharge its functions under this act slo (4) the terms and conditions of service of the executive directors, secretary and other officers and employees of a corporation shall be such as may be prescribed (5) every person employed by a corporation or whose services have been transferred to a corpora ~ion under this act, shall be liable to serve 25 anywhere in india (6) any executive director to whom any powers and duties are delegated by any corporation or exec'utive committee thereof, shall exercise those powers or perform those duties in the same manner and w~th the ~e effect, as if they had been conferred on such exec'lltlve 30 dll'ector directly by this act and not by way of delegation  chapter v the life insurance boardis (1) the central government may, by notification, constitute a board, to be called the lfe insurance board, consis ing of-35 (a) the chairman of each corporat:on, ex officio) and (b) such number of other members, not exceeding eleven, as the central government may think fit to appoint thereto (2) the office of the board shall be at new delhi (3) one of ~he members of the board shall be appointed by the 40 central government to be the chairman thereof (4) before appointing a person to be a member of the board the central government shall satisfy uself that such person will hav~ no luch ~ancial or other in~erest as is likely to affect prejudicially the exercise or performance by him of his functions as a member thereof, 45 and the central government shall also satisfy itself, from time to time, with respect to every member of the board thft he has no such interest, and any person who is, or whom the central government proposes to appoint as, and who has consented to be, a member of the board shall, 5 whenever required by the central government so to do, furnish to ii such information as the central government may consider necessary lor the performance of its duties under this s'ub-section (5) a member of the board who is in any way directly or indirectly interested in a contract made or proposed to be made by anyone or 10 more of the corporations shall, as soon as possible after the relevant circumstances have come to his knowledge, disclose the nature of his interest in the contract to the board and to the central government and such member shall not take par,t in any deliberation or discussion of the board with respect to that contract 15 16 (1) a member of the board, other than an ex officio member conditions of servico oflllcldbm of tho board thereof, shall hold office for such term, not being less than three years, as may be prescribed and shall be eligible for reappointment for a like term (2) notwithstanding anything contained in sub-section (1) ,-::zo (a) the central government may terminate the appointment of a member of the board (other than an ex officio member) at any time before the expiry of the term of office fixed under sub-section (1) by giving him a notice in writing of not less than three months, and \i_ (b) every such member (other than an ex officio member) may resign his membership of the board at any time before the expiry of the term of his office by giving to the central government a notice in writing of not less than three monthll (3) a casual vacancy arising from the death, resignation or otherwise 30 of a member of the board may be ftlled by fresh appointment and the person appointed to fill the vacancy shall hold office for the remainder of the term of office of the member in whose place he is appointed (4) if the chairman or any other member of the board, is, for infirmity or otherwise, incapable of carrying out his duties or is absent 35 on leave, the central government may appoint another person to act in his place for the period during which such chairman or other member of the board is unable to carry out his duties or is absent on leave (5) a person appointed as a whole-time member of the board shall 40 be entitled to receive such salary and allowances, and shall be subject to such conditions of service in relation to leave, pension, provident fund and other matters as may be prescribed, and a person appointed as a part-time member of the board shall be entitled to such allowances and shall he !;ubject to such other conditions of service as may be determined 45 by the central government  committee of the board 17 (1) the board may constitute as many committees consisting wholly of members of the board or wholly of other persons or partly of members of the board and partly of other persons and for such purpoles as it may deem fit (2) the members of a committee (other than the members of a corporation or of the board) shall be paid such fees and allowances as may be prescribed, for a~dini its meetingj and for attending to any other work of the board mootinp or the board 18 (1) for the purposes of this act, the board or any committe of 5 the board shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at ita meetings as may be prescribed (2) notwithstanding anything contained in sub-section (1), a member of the board who has any direct or indirect pecuniary interest in any 10 matter [other than a contract referred to in suthlection (5) of section 15], coming up for consideration at a meeting of the board or a committee thereof shall, as soon as possible after the relevant circumstances have come to his knowledge, disclose the nature of his interest in respect of that matter at such meetingj and such member shall not take part io 15 any deliberation or discuuion of the board or the committee with respect to that matter 19 (1) the board may appoint a secretary and such other officeh and employees as may be neceuary for the performance of ita functions ~ and other ataft'orthe board (2) the terms and conditions of service of the secretary and other go officers and employees of the board shall be such as may be prescribed puactions or tho board 20 (1) s'ubject to the other provisions of thil act and the rule mad thereunder, the board shall, from time to ttime, review the functioning of each of the corporations and render such service to any corporation as it may deem fit for the promotion of such measures as are, in ita 2') opinion, conducive to the development of life insurance businell (2) in particular and without prejudice to the ,enerality of the foregoing provisions, the board may-(a) suggest measures for co-ordinatini the workins of the corporations; 30 (b) plan and or,anise tra1djng ot-(i) persons included in the management cadres end lay down norms for trainin, of varioua pe1'iodi in varioua otbar cadres, and (ii) insurance agents; (c) inspect at all reasonable timet the offtcei of any corporation; (d) provide for research and evaluation of life inlurance lcheld8l; (e) provide assistance and guidance in relation to the followin, namely:-(i) mortality and actuarial investigation on all·india basis 40 in respect of assured lives, annuitants, impaired lives, lives covered under group insurance and pension schemes and fixation of underwri ~ing standardsj (ii) researc~ an~ development of new plans for intensive de--velopment of life msurance business and for meetin, specific 45 insur~~ce needs of various sections of the community; (lu) co-ordinating the activities in the matter of conducting periodical actuarimj evaluations; (i) review procedurems and practices in the working of the corporations at all levels; (g) perform such other functions u may be prescribed fiuadces or 'ho board zl (1) the central government may, from time to time, by general or special order and subject to any rules that may be made in this behalf, 5 direct each corporation, having regard to the premium income of that corporation and other relevant considerations, to pay to the board such amount as it may determine for meeting t!!e expenditure of the board (2) if any defrut is made by any corporation in making payment 10 to the board of the whole or any part of the amount determined by the central government under su~sectlon (1), such amount shan be recoverable in the same manner and to the same extent as if it were a decree passed by the civil court within tae local limits of whose jurisdiction the head ()f8ce of that corporation is situated  chap1'er vi cojisi1l'u'ho'h op tluaun'ai812 (1) the ceatraj government shell, as iood as may be after tbe appointed day, by notification, coiiibtitute u many claims tribunals as it may deem necellsllry for deciding disputes with respect to claims under 110 pelicleb of die iasuranee power of central gov(,rnment to coii$titute oaiml tribunals (2) each claims tribunal shall consist of ode member, or where the central government is of opidlod that such tribunal shall consist of more than one member, such number of members, not being less than three, u the central government may thlak fit to appoint 115 (3) where a claims tribunal coasists of ode member, that member shall be a person who is holcling, or has held, for not lea than seven yean, a judicial office in the territory of india or is, or has been, a member of the indian legal service, and is holding, or has held, a post not below a post in grade d of that service, and where the claims tribunal consists go of more than one member, not less than one of the members of such tribunal shall be a penod qualified as aforesaid, and the remaining member or members lhall he appofated from amongst serving officers of a rank not below that of a director to the government of india or of  equivalent rank tmder a state govemment or ad insurance corpora-35 dod or the baud (4) where the number 01 members of a claims tribunal is more than olle, the ceiltral government ahali appoint olle of those members to be the presidedt of that triltunal, who shall preside over the meetings of that tribtmal, and in the abl8llce of the prelddent, the hdiormolt mem-40 her of the tribunal ,hall preside over itl meetinp explanation l  for the parpolell of tide mdion ad of eections 21 and ii, "inlurance eorpontllda"  ()the ciiuoived corporatioa; (b) a cporauoa  bushed  this act; (c) the general iasurmee corporatlod  under the general insurance busmess (nationalisatiod) act, 17z, or ady of its lubsldiaries explanation h-in eomputidg, for the pul'polell of this seetiod awid ef sections 27 and 31, the period during which a penon h held judicial 5 office in the territory of india, there shall he mcluded my period, after he has held any judicial office, during which the penon hils beed practising as an adl"ocate or has held the ofllce of - member of a tribunal or any post under the unioi' or a state, requiriar apeelal imowledre of law (5) any vacancy in the member-hlp of a claims tribunal shall be 10 fllled up by the central government as soon  prac:ticahle territorial limit of the jurillciiction or claim tribwlj1 23 (1) the central government shall, from time to time, define, by notification the territorial limits withfn which a claims tribunal shall exercise its jurisdiction and where two or more claims tribunals have jurisdiction over the same territoral limits, the central govem- 15 ment shall also provide, by notification, the distribution or allocation of work to be done by each of them (2) each claims tribunal shall have jurisdiction to decide all c:ji8 putes with respect to maturity claims or death claims under policies of life insurance, arising within the territorial limits of its jurlsdictk (3) where a claimant has more than one maturity claim or death claim under policies of life insurance, he shall while making any claim before a claims tribunal, include in the application made by him under sec:-tion 24, all the claims which he is entitled to make before such tribunal: provided that he may if he so desires, relinquish any portion of his l35 ~~  explanation-·for the purposes of this sub-section, "maturity claim" means a claim under a policy of life in!ftlrance in relation to which there is no douh or dispu+e as to the compliance of all the terms and conditions of such policy of life insurance, including the payment of all, 30 premia payable thereunder (4) if the claimant fails or omits to include, in the application made by him under section 24, all his claims or relinquishes any portion of his claim he shall not be entitled thereafter to make any application relatin~ to any claim which he has 80 omitted to include in the appli- 35 cation aforesaid or which he has so relinquished, and where any a1)1)li cation under section 24 has been adjudicated upon by the claims tribunal or the appellate claims tribunal, the claimant shall be debarred from instituting- any suit or other le~ai proceeding' in relation to any claim which he has failed or omitted ~o include in such application or 40 which hall bm!! 0 reunquiahed by him (5) where a claimant ho made e'"im bfore dffpe"ent cli,fm" tribun,,'s havinl! ;urisdfct'on he mav alllllv to anv of the said tribunals to make an order, so that all the rl"imll made by htm mav ·be heard by a sin"l"! """"ullll1 and the1"4!u\')f)l\ t"e trlbunll' in wlti'el't melt a""1if!a~ 4s tion is made mav bv order determine """'ell of flip af, trlbunal shall deal with a11 the claims and transf8!' to meb trtbunal the e1atms pending with the other trlbunalt and the trlbu:a1l1 to which the claims are l:1o transferred shall deal with each such claim from the stage which was reached before the tribunal from which the claim has been so transferred u (1) any person aggrieved by-5 (a) the decision of a corporation rejecting the whole or any par,t of the maturity or death claim made by him under any: policy of life insurance, or (b) the omission or failure of a corporation to give its decision, within six months from the date of the application, on the whole or 10 any part of the maturity or death claim made by him, under any policy of like insurance, may make an application to the claims tribunal having jurisdiction for the determination of his claim and for the grant of such relief as the tribunal may think fit 15 (2) every application made under sub-section (1) shall be made in '4~h torm, be verified in such manner, and be accompanied by sucl:l fee, not exceeding five hundred rupees, as· may be prescribed on a graded cale depending on the value of the claim (:-/) an application, under s'ub-section (1), for the determination of !w a claim shall be made,-(a) in the case of a decision referred jto in clause (a) of that bub-section, within a period of ninety days from the date on which the decision of the corporation rejecting the claim, whether in whole or m part, was communlca~ed to the applicant; 25 (b) in the case of any omission or failure referred to in clause (b) of that sub-section, within a period of ninety days computed from the date on which the said period of six months expires: provided that the claims tribunal may admit any such application after the expiry of the said period of ninety days if it i's satisfied that 30 the applicant was prevented by sufficient cause from making the application within the said period (4) a:ny person referred to in sub-section (1) may, instead of making an application to a claims tribunal under sub-section (1), institute a suit: or commence any other legal proceeding in a civil court having 35 juriediction for the recovery of any amount due in respect of a maturity claim or deah claim under any policy of life insurance or for any other relief in relation to such claim, and where any such suit or other legal proceeding is instituted or commenced, no claims tribunal shau have jurisdiction to entertain any application in relation to the maturity claim 40 or death claim under any policy of life insurance in relation to which such suit or other legal proceeding has been instituted or commenced, unle~s such suit or other legal proceeding is withdrawn, within the period specified in sub-section (3), by the person by whom it was instituted or commenced or, if he has died before the expiry of the said 45 period, by his legal representative (5) where a suit or other legal proceeding referred to in sub-·section (4) is withdrawn within the period specified in sub-section (3), the aggrieved person may make, within the said period, an application under lub-section (1) to the claims tribunal having jurisdiction for the determination of his claim and for : he grant of such reliel as the tribunal may deem fit and on such application being made, the tribunal shall have j'urisdiction to deal with the matter (6) no suit or other legal proceeding shall lie in a civil court in respect of any matter which is pending before, or which has been de- 5 cided by, a claims tribunal or the appellate claims tribunal iinches of oaims tribww 25 the powers and functions of a claims tribunal may be exercised and discharged by benches constituted by the president of thqlt tribunal, from amongst the members thereof: provided that the president of the claims tribun~l, or any other 10 member of such tribunal authorised in this behalf by the president of that tribunal, may, sitting singly, dispose of any claim which has been allotted to a bench of which he is a member, where the amount of the claim does not exceed twenty-five thousand rupees orden )1' claims tribunals 26 (1) a claims tribunal may, after giving the parties to the ap- 15 plication an opportunity of being heard, pass such orders thereon as it may think fit, confirming, modifying or annulling the decision or order against which such application has been made or may remand the case to the corporation by which such decision or order was made, with such directions as the claims tribunal may think fit, for fresh ad- 20 judication or decision, as the case may be, of the claim after taking additional evidence, if necessary, or may grant such relief as may be just and proper in the circumstances of the case (2) a claims tribunal shall send a copy of every order passed by it under sub-section (1), to the parties to the application 25 (3) an order passed by j1he claims tribunal under sub-section (1) shall, subject to the decision of the appellate claims tribunal, if any, be final 27 (1) the central government shall, as soon as may be after the appointed day, by notification, constitute an appellate tribunal, to be 30 called the appellate claims tribunal, consisttng of 88 many judicial and technical members, not being less than three, as it may think 8t, for deciding appeals preferred under section 28 power of central governmedl to constitute an appeijatii claims tribunal (2) a judicial member of an appellate claims tribunal shall be a person who has, for not less than: ten years, held a judicial office in the 95 territory of india or l  , or has been, a member of the indian legal service, and i- holding, or has held, for not less than three years, a post not below a post in grade i of that service; and a technical member of an appellate claims tribunal shall be a person who is or has been an officer of a rank not below that of a joint secrci:ary to the government of india or 40 of anequival  nt rank under a state government or an insurance cor· poration or the board (3) the centrul government shall appoint one of the members 01 the appellate claims tribunal to be the president thereof (4) the central government may appomt one or more members o' 45 the appellate claims tribunal to be the vice-president, or, 8s the case  duly be, viceprc!lidents, thereof (5) the viee-president of the appellate claims tribunal shan ezereise 'sueh of the power,; tilnd perform such of the functions of the president of the appellate claims tribunal as may be delegated to him by the president of thnt tribunal by a general or special order in writing 5 (6) any vaeaney in the membership of the appellate claims tribunal shall be filled up by the central government as loon as practicable 28 (1) any person aggrieved by an order passed by a claims tribunal under sub-'section (1) of section 26 may prefer an appeal to th!e appellate claims tribunal against such order | appeals    ||------------|| tho        || appeuato   || claims     || tribunal  |10 (2) every memorandum of appeal to the appellate claims tribunal shall be in 'such form, be verified in such manner and be accompanied by such fee, not exceeding five hundred rupees, as may be prescribed on a graded scale depending on the value of the claim (3) every appeal under this section shall be filed within sixty days 15 trom the date on which the order sought to be appealed against was communicated to the appellant: provided that the appellate claims tribunal may admit an appeal after the expiry of the aforesaid period of sixty days if it i'8 satisfted that the appellant was prevented by sufficient cause from preferring 10 the appeal within the said period 0rci0r of the apj?oliate cjaims tribunal 29 (1) the appellate claims tribunal may, after giving the parties to the appeal a reasonable opportunity of being heard, pass such orders thereon 3s it may think fit, c(lnfirming, modifying or annulling the order appealed a~ainst or may remand the case to the claims tribunal which 15 had passed such order with such directions to the claims tribunal as the apoellate claims tribunal may think fit, for fresh adjudication of the claim, after taking additional evidence, if necessary (2) the appellate claim's tribunal shall send a copy of every order passed by it under sub-section (1) to the parties to the appeal 30 (3) everv order passed under sub-section (1), other than an order remandin~ the case to the claims tribunal, shall be final and shall not be called in q';1estion in any court except by wav of a petition under article 32, or article 136, or article 226 of the constitution benches of the appellat~ claims tribunal 38 (1) the powers and functions of the appellate claims tribunal 35 may be exercised and discharged hy benches constituted by the presi·, dent of the appellatp claims tribunal from amongst the members thereof: provided that tne president of the appellate claims tribunal or any other member of such tribunal authorised in this behalf by the 40 president of th'3't tribunal, may, sitting' singly di'spose of any appeal which has been all'otted to a bench of which he is a member where the claim involved in such appeal does not exceed fifty thou<;and rupees (z) subject to the provisions of sub-sectiod (1) , and sub-eecti01l (3), a bench shall consist of not less than one juc!icial member and dot less than one technical member (3) where, before or after the hearing of an appeal, a bench whether consisting of a single member or more than one member, is 5 satisfied that such appeal involves-(a) a substantial question of law of general importance, or (b) a question which is likely to affect the interests of any corporation or the dissolved corporation or the policy-holders generally, 10 it may either of its own motion or on the application of any of the parties, draw up a statement of the facts of the case and the point which, in its opinion, involttes any such question and tefex- such appeal, together with such statement, to the president of the appellate clalmw tribunal with a request to him to constitute a special bench for hear- 15 lng the appeal, and on receipt of such reference, the president of the appellate claims tribunal shall constitute a special bench, which shad consist of not less than three members, of whom not less than one 'shan be a judicial member and not less than one shall be a technical mem- 20 ber (4) the special bench, after hearing the parties if they appear and desire to be heard, shall decide the appeal sci referred to it, and shan transmit a copy of its order to the bench by which the reference was made to it (5) the co'sts (if any) consequent on a reference for the decision 25 of the special bench shall be the costs in the case 31 (1) the 'central govemment shall, as soon as may he after the appointed day, by notification, constitute as many service matters tribunals all it may deem neeessar\v for dealing with the applications made under section 32 for the redressal of the grievances relating to iiervke go matters  , f i power of central government to conetitute service matters tribunals (2) a service matte", tribunal may consist of one mem1ter, or where the central government is of opinion that such trlhunal shan consist of more than one member, such number of members, not heing less than three, as fhl" central govemment may think ftt to appoint 35 (3) where a service matters tribunal consists of one mem1ter, that mem1ter shall he a person who is holding, or bas h~ld, for not less than seven years, r jlldimal ofllce in the territory of india or is, or h8~ been, a member of the indian lepl servlce~ and is holding, or has held, a post not helow a 'post in grade n of that service, and where the santee 40 matters tribunal con!lllst~ of more than one member, not ids than one of the memben of such trlllunal!llhal11je a penon who is quallfted 88 atoresaid and the remalnini member or memben "hall be appointed fj40ld amort~t wervlng ofrt'er!ll who have had ~rience in dealing with servlee matte"" being officerll! of a rank not below that of a director to the gov- 45 emment of india 01' of an equivalent rank under a state government 01' "n inllurance corporation or the board (4) whe", the number of members of a service matten tribunal is more· th, 'one, the central government shan appoint one of those members to be the! president of that tribunal, who shall preside over the meetings of that tribunal, and in the alfsence of the president, the 5 senlormost memljer or that tribunal shall preside over its meetings (5) the central govemlment shall, from time to time, define, by notification, the territorial iimhs within which a service matters tribldlal shall exerdse its jurisdiction, and where two or more service matters tribunals have jurisdiction over the same territorial 10 limits, the centj'al govel'lude1it shall also provide, by notification, the distribution or adocatton of work to be done by each of them (6) ally vacaney in the membership of a service matters tribunal shall be filled up by the central government as soon as practicable 3z (1) in this section,-(a) "service matter", in relation to an employee of it corporation, or of the board, means any matter arising out of the terms and conditions of his service; ~ of tho pteyance with reapect to -ice matters (b) "grievance with respect to a service ,matter", in relation to an employee of a corporation or of the board means a ~ie-110 vance of 'such employee to the effect that he has not been dealt with in regard to that service ma1:tler in conformity with the terms and conditions of his service: (e) "terms and conditions of service", in relation to an emplovee of a corporation or of the board, means the terms and con-25 dttions of servit'e specified bv anv rule, regulation 0" orde,- made , under this act, for tlie time being in force, and app'icahle to him (!) an employee of a corporation or of the board, ag~ieved by-(a) any decision or order of a corporation or the board rejecting his i:lpplication or representation for the redressal of his grlev-30 ance with respect to any serviee matter, or (b) the omission or failure of a corporation or the board to ~ve its decision in relation to any application or representation made by him for the redressal of his grievance with respect to any service matter, 35 may make an application to the service matters tribunal having juri'sdietton, for the red'ressal of his grievance with respect to that service matter: '' , provided that no application for the redre'ssal of any grievance with ~t to a service matter shall be entertained by the service matters 40 tribunal until the applicant has exhausted all the remedies available to him under the rules, regulations or orders relating to the terms and conditions of his service, for the time being in force, for the redres~"l of such grievance,: provided further that the service matters tribunal may if it is 45 satisfied that the applicant was prevented by sufficient cause from exhausting all the remedies available to him undm- such rules regulatfons or orders, entertain the' application for the redressa} of such grie,'ance even though the applicant had 'lot exhausted all such remedies (3) an application, under sub-section (2), for·the redresaal of the grievance of an employee of a corporation or of the board with jj!spect to a service matter shall be made,-(a) in the case of a decision or order referred to in clause (a) of that sub-section, within a period of ninety days from the date on 5 which the decision of the corporation or board rejecting his application or representation, as the case may be, was communicated to the applicant, (b) in the case of any omission or failure referred to in clause (b) of that sub-section, within a period of ninety days, computed 10 from the date of expiry of the period of six months from the date on which the application or representation was submitted by him to the corporation or the board, as the case may be, for the redressal of his grievance: provided that the service matters tridunal may admit any such 15 application after the expiry of the said period of ninety days, it it is satisfied that the a"pplicant was prevented by suftlclent cause from making the application within the said period: provided further that where a person who had, before the appointed day, flied with the dissolved corporation, any application for the re-!zo dressal ot a grievance with respect to a service matter, and the dissolwd corporation had not communicated to such person its decision on such application for a period of not less than six months from the date on which the application was fued by him, such person may, within ninety days from the appointed day, make an application under 25 this sub-section to the service mat~rs tribunal having jurisdiction for the redressa1 of his grievance' (4) an application under sub-section (z) shall be made in iuch form be verified in such manner and shall be accompanied by such fee, not exceedin~ one hundred rupees, as may be prescribed on a graded 30 scale depend~nj! on the nature of the grievance (5) nothinj! contained in this section shall empower any person to make any application under sub-section (2)-(a) if on the date on which the application is made, the institution or commencement of anv suit or other legal proceeding re- 35 latin~ to the service matter is barred by any law of limitation for the time being in force; or (b) jf any suit or other legal proceeding had been instituted or commence'!d in any court, whether before or after the appointed day, with resp:>ct to an" service matter, unless such suit or other legal 40 proceedin~ i's w:thdrawn before the expiry of the period ot limitation as aforesaid 8enche~ of s-rnc:e matten tribuaa1 33 the powers lmd functions of a service matters tribunal may be exercised and discharged by benches constituted b the president of that tribunal from amongst the m~mbers of such tri~unal: 45 provided that the president of the service matters tribunal or any other member of such tribunal authorised in this behalf by the pr8f dert of that tribunal, may, sitting singly, dispose of any· applicatton which has been allotted to a bench of which he is a member, if the subject-matter of such application does not relate to reduction in rank, suspension, removal or dismissal from service ordora iii service mutan tnljuuaji 34 (1) a service matters tribunal may, after giving the parties to 5 the application a reasonable opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or annulling the decision or order against which such application has been made or may remand the case to the corporation or the board which passed such decision or order with such direction as that tribunal may think fit, for 10 fresh adjudication or decision, as the case may be after taking additlonal evidence, if necessary, or may by order grant such relief as may be just and proper in the circumstances of the case (2) a service matters tribunal shall send a copy of every order passed by it under sub-section (1), to the parties to the application 15 (3) every order passed under tpis section by a service matters tribunal shall be final and ahajl not be called in question in any court except by way of a petition under article 32, or article 136, or article ~ij, of the constitution  chapter vii provisions applicable to all tribunals110 5 ,f 1980 35 (1) for the purposes of discharging its functions, every tribunal constituted under thjs act, (whether it is a claims tribunal or the appellate claims tribunal or a service matters tribunal) shall have the same powers as are', vested in a civil court under the code of civil pro-25 cedure, 1908, while trying a suit, in respect of ,the following matters, namely:-powoi'i iii tribunals to oilforce attondanco of witncbles and to r('gu_ late their own procedure (a) summoning and enforcing the attendance of any witness and examining him on oath; (b) discovery anq inspection of any document or other material 30 object producible as evidence; (c) compelling the production of books of accounts and other documents; (d) reception of evidence on affidavits; and (e) issuing of any commission for the examination of any witness (2) subject to the provisions of this act and the rules made thereunder, every tribunal refermd to in sub-section (1), shall have power to regulate its own procedure and the procedure of the benches thereof in all matters arising out of the exercise of its powers or of the dis-40 charge of its functions, including the places at which it or its benches shall hold its, or their, sittings 45 or 860 prooaodinp bofore tribunals to be judi· cial proceodinp for cartain pw'poia 36 every proceeding before a tribunal constituted under this act, (whether it is a claims tribunal or the appellate claims tribunal or a service matters tribunal), shall be deemed to be a judicial proceeding 45 within the meaning of sections 193 and 228, and for the purposes of section 196, of the indian penal code; and every such tribunal shall be deemed to be a civil court for the purposes of section 195 and chapter xxvi of the code of criminal procedure, 19'13  - • , 19'74· ttr~ure where the members cr - tribudai difl'c:r in their opinion 31, where a cjaim o~ an appeal or an application, relating to a·gieyadiiu with respect to a service matter baa been heard by a claims tribuqal, or the appellate claims tribunal, or a service mattera tribuqal, as ~ecase may be, or any bench thereof, consisting of more than one member and the -members differ in their opinion on any point, the decision on such 5 point shall, where there is a majority, be according to the opinion of such majority, and where there is no majority and the members are equally divided in their opinion, they shall draw up a statement of -the facts of the case :md the point or points on which they difter in their opinion and make a rcference of tthe claim or of the appeal or of the application 10 relatint to the service matter, as the case may be, to the president of 8uch tribunal, and on receipt of such reference, the president of tbe concerned tribunal shall arrange for the hearing of such point or points by one or more of the other members of that tribunal, and such! point or points, or the appeal, shall be decided 8ccqrding ~ the 15 opinion of the majority of the members of the concerned tribunal who have heard the claim or appeal, or, as the case may be, relating to the grievance with ~t to the service matter, including those who had first heard it m-bod         01 diwmida-tloa       01 equjwedt nak     38 in determining, for the purposes of sections 22, 27 and 31, whether 20 an officer of a state government or of an insurance corporation or of ,the board holds any rank equivalent to that of a joint secretary or director to the government of india, regard shall be had to the scale of pay of the post held by that officer under the state government or the insurance corporation or the board, as the case may be                                                                                                    25    39 (1) subject to such conditions and limitations as may be pres-cribed, the costs of and incidental to all claims, appeals or applications, filed under this act shall be in the discretion of the tribunal (whether it is a claims tribunal or the appellate claims tribunal or a service matters tribunal), in which such claim, appeal or application is filed and 30 the tribunal shall have full power to determine by whom and to what extent ~ch costs are to be paid, and to glveau-necessary directions for the purposes aforesaid, and the fact that the tribunal has no jurisdic-tion to deal with the claim or application or hear the appeal shall be no bar to the exercise of such powers                                                                                                 35     (2) where any such tribunal directs that any costs shall not folloy the event, the tribunal shall state its reasons in writing  chapter viii finance, accounts and auditpudi corporati  of 40 every corporation shall have its own fund and au its receipts 40 shall be credited thereto and all payments of the corporation shall be made therefrom 41 (1) the accounts of every corporation and the accounts of the board shall be audited by auditors duly quawied to act as audlto1"ll of companies under the law for the time being in force relating to companies, and ,the auditors shall be appointed by the corporation whose 45 accounts are to be so audited, or the board as the case rna be with th  'y,  e previous approval of the central government and shall receive such remun~ration from the concerned corporati~n, or the board as the central government ,may tlx ' 50 (2) every auditor in the performance of hi~ duties shall have at all reasonable times access to the books, accounts and other documents of the concerned corporation or, as the case may be, of the board (3) the auditors shall submit their report to the corporation or, as 5 tbe cue may be, to the board, by which tm!y were appointed, and shall als, forward a copy of their report to the central government 42 every corporation shall, once at least in every two years, cause an investigation to be made by actuaries into the financial condition of the life insurance business of the corporation, including a valuation of 10 the liabilities of the corporation in respect thereto, and submit the report of the actuaries to the central government 43, (1) every corporation and the board shall, as soon as may be, after the end of each financial year, prepare and submit to the central government i:n such form as may be prescribed a report giving an ac-15 count of its activities during the previous financial year and shall also give an account of the activities, if any, which are likely to be undertaken by it in the next financial year (2) every corporation and the board shall, in relation to its func-uons under this act, furnish to the central government such reports, 20 returns, statistics, accounts and other information as the central government may, from time to time, require  from lif insul'8llco busms how to be utilised u if as a result of any investigation undertaken by a corporation under section 42, any surplus emerges, ninety-five per cent of such surplua or 8uch higher percentage thereof as the central government may q5 approve, shall be allocated to or reserved for the life insurance policyholders ot the corporation and, after meeting the liabilities of the corporation, it any, rt"he remainder shall be paid to the central government or, it that government so directs, be utilised for such purposes and in liueh manner as that government may determine so 065 h, for any financial year, profits accrue from any business (other than lite insurance business) carried on by a corporation, then, after making provision for reserws and other matters for which provision is neceaary or expedient, the balance of such profits shall be paid to the central government prodi'! ~ any busidie (other tbaa life idsui'ailai business) how to be utilised ropotts lit bo laid wore parliament 95 46 the central government shall cause the report of ,the auditors under section 41', the report of the actuaries under section 42 and the report under section 43 giving an account of the activities of every cor  poration and of the board to be laid before both house5 of parliament as soon as may be after each such report h; received by the central 40 government  chapter ix miscellaneous47 except as otherwise expressly provided in this act: on and from the appointed day, no person, other than a corporation, shall carry en 45 life insurance business in india corpora tions to haw ,xclulive' privilac of carr)'ing "n lice insurance qusineal exooptions in tho cue of lifo insurailqo businosl in respect of persons ord nanly rosidina outside india 48 (1) notwithstanding anything contained in section 47 or in the insurance act, the central government may, by order, permit any person who has made an apphcatlon in that behalf, to carryon life msurance business in india m respect of tne lives of persons ordlnarily resldent outside india, subject to such restrictions and contihions as 5 may be specitled m the order and any such order shall be deemed to have etlect as if it were a certrlicate of registl'ation issued by the controller to such person under seclon 3 of the 1ns'urance act m respect ot tuat class of business u, (2) nothing in sub-section (1) shall authorise any persoil who is 10 permited to carryon lite msurance busmess of the nature refened to in lhilt sub-sectlon, to ulsure ne hte 01 any person orcunarily re~dent ouc:s,ue 1nola, uurmg any penod of ms tempol'dry residence m india 49 evet'y corporallon may have for use in any divsional oftice, lhu,ucn urn:e or omer oitu'e or in any othce o·utslc1e lmtla, an otliclal 15 seal wnh:n imai1 de a 1acsllnue 01 tne common seal of the corporation, powers of corporatiodi to have official seals in certain cases \viln [de aouhlon on its tace 01 tne name 01 toe divislonal office, branch utllce or orner otfice or any office outsde !nwa, where it is to be used, 'and any such otilcial seal may be attixed 0 any deed or document to wmcn the corporation is a party 20 so the sums assured by all polides of life idsul1ldce issued by, or transferred to or vested in, a corporation including any bodu:ies declared in respect thereof, whether before or after the appointed day, shall be guaranteed as to payment in cash by the central government policies of life insuran~ to be luarantccd by central government liquidation· 51 no provision of law relating to the winding up of companies or 25 corporations shall apply to a corporation established under tms act, and such corporallon shall not be placed in liquidation save by order of the central government and in such manner as that government may direct  '1i<"t'::' 5~ if any person carries on life insurance business in india in contra- 30 venti on of the provisions of this act, he shall be punishable with impflsonment for a term which may extend to three years, or with fine which may extend to ten thousand rupees, or with both, and where such contravention is a coninuing one, with further fine which shall not be less than one thousand rupees, for every day, after the first, during which such contravention continues 35 penalty for :rtr:' idl\jl"8dco businou in contravention of tho provisions of this act ~ -; penalty for withholdida property, 1tc 53, if any person wilfully withholds or fails to deliver to a corporation as required by the provisions of the first schedule, any property or any books, documents or other papers which may be in his possession or unlawfully retains possession of any property which has been transferred to and vested in any corporation under this act or wilfully 40 applies any such property to purposes other than those expressed in or aut~orlsed by this act, he shall, on the complaint of the corporation, be punishable with imprisonment for a term which may extend to one year, or with -fine, or with both rt4 (1) where an offence under this act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: provided ~hat nothing contained in this sub-section shall render any such person liable to any punishment provided in this act, if he proves 5 that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence (2) notwi 'hstanding anything contained in sub-section (1), where any offence under this act has been committed by a company and it is proved that the offence has been committed with the consent or conni-10 vance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly it) explanation-for the purposes of tm hction,-(a) "company" means any body corporate and includes a firm or other association of individuals; and (b) "director", in relation to a firm, means a partner in the firm bar of iurildlctiod or ctyil coil1'ii 2l> 55 no civil co'ilrt shall have jurisdiction to entertain any suit or other legal proceeding or to adjudicate upon any matter which a service matters tribunal is empowered by this act to adjudicate upon enforce -ment of decilfods and orders of tribunals 56 any decision given or order passed or made (including any order for costs made under section 39), by a claims tribunal, or the appellate 25 claims tribunal, or a service matters tribunal may be enforced in the same manner and to the same extent by any civil court within the local limits of whose jurisdiction,-(a) the head office of the corporation against which such decision or order is to be enforced, is located, or, where such decision 30 or order is to be enforced in relation to any claim arising within the area for which there is a branch office or other office of the concerned corporation, such branch office or other office is located; or (b) the office of the board against which such decision or order 35 is to be enforced, is located; or (c) the place at which the person against whom such decision or order is to be enforced, actually and voluntarily resides or carries on business or personally works for gam, or owns any property, 40 a 11 it were a decree passed, or order made, by such court 57 (1) save as otherwise provided elsewhere in this act, the followi'ag sections of the insurance act shall, so far as may be, apply to every corporation as they apply to any other insurer, namely:-sections 2, 2b, 18, 26, 33, 38, 39, 41, 45, 46, 50, 52, !loa, 110b,  5 hoc and 119 (2) the central government shall, as soon as may be after the appointed day, by notification, direct that the following sections o~ the insurance act shall apply to every corporation subject to such conetions and modifications as may be specified in the notification, namely:-sections 20, 10, 11, 13, 14, 15, 20, 21, 22, 23, 25; 27a, 28a 40; 40a, 40b, 43, 44, 51, 102 to l06, 107 to 110, 111, 113, 114 and usa (3) section 42 of the insurance act shall have eft'ect in relation to 5 the issue to any individual of a licence to act as an insurance agent for the purpose of soliciting or procuring life insurance bllliness for a corporation rubject to the condition that the powers exercisable by the controller under sub-section (1) thereof may also be exercised on behalf of the controller, by every corporation 10 (4) the central government may, by notification, direct that all or any of the provisions of the insurance act other than those specifted in sub-section (1), or sub-section (2), shall apply to every corporation subje(;t to such conditions and modifications as may be specified in the notification 15 (5) save as otherwise provided in this act, nothing contained in the insurance act shall apply to a corporation 58 notwithstanding anything {lontainea in section 193 or section 1m of the income-~ax act, 1961, no deduction of income-tax shall be made 13 qflgir on any interest or dividend payable to a corporation in respect of any 10 securities or sharei' owned by it or in which it has full beneficial interest dcductior of incomo-wx rot to be made on interest or dividwlld 59 nothing contained in this act shall apply in relation to-act not  apply ill ~n cge!! (a) the scheme, run by the central government, known as the post office insurance fund; (b) any insurer to whom the insurance act does not apply by 85 reason of the provisions contained in section 2e thereof; (e) any approved superannuation fund as defined in clause (a) of section 58n of the indian income-tax act, 1922, being a fund in 11 , i'll existence on the date (hereinafter referred to as the specified date) on which the dissolved corporation was established; so (d) an~ scheme in existence on the specified date or any scheme framed after the specified date with the approval of the central government as the case may be, whereby in consideratlod of certain compulsory deduc~ions made by government from the salaries of its employees as part of the conditions of service, the pay- 35 ment of money is assured by government on the death of the employee concerned or on the happening of any contingencv dependent on his life;  \ ~e) any family pension scheme framed unde!" the coal minee provldent fund, family pension and bonus schemes act 1mb or the employees' provident funds and miscellaneous provisions act 4-0 46 of 2941 1952, for the purpose of providing famuy pension and life a~ beneftts to the employees covered by the said scheme' 19 of ltd (1) any scheme of small savings run by the c;ntrai government wbereunder payment is assured by that government on death of the person subscribing to the scheme or on the the 45 of a~y ~ontingency as the central government may b happeti1l nmc tt specify in this behalf ' y no cia 011, 80 no act or proceeding of a corporation or of the board or of any committ~ of any corporation or of the board or of a claims tribunal, the appellate clabns tribunal, or a service matters tribunal, shall be invalid or called in question merely by reason of the existence of any 5 vacancy therein or any defect in the constitution thereof dofectl in codititudoll of a corporatiodor tboboard or of any tribunal dol to invalidate acta or ~ profll&:do8 of ac:dod taba aaciir tho act· 61 no suit, prosecution or other legal proceeding shall lie against any member, executive director, or employee of a corporation or of the board for anything which is in good faith done or intended to be done under this act 10 62 every employee of a corporation or of the board or of a claims tribunal or the appellate claims tribunal or a service matters tribunal shall be deemed tp be a public servant for the purposes of chapter ix 45 r atiii of the indian penal code 63 (1) no person who is, on or after the appointed day,-(4) an employee of the government; or diicauali6-cadoa for appoinlmed' a illlufulce iiicnt (b) a holder of the office of chainnan or director or of any other office in, or an employee of a statutory corporation or a government company; or 20 (c) the spouse of an employee referred to in clause (a) or clause (b), or, as the case may be, of the holder of an office referred to in clause (b), shall be eligible for the issue of, or shall accept, any licence to act as an insurance agent, and any such licence, if issued, shall be void (2) the licence issued, after the appointed day, to a person to act as 25 an insurance agent shall become void upon such person becoming, after the issue of such licence,-(i) an employee of the nature referred to in clause (a) or clause (b) of sub-section (1), or (ii) the holder of an office of the nature referred to in clause 30 (b) of that sub-section: provided that the hcence to act as an insurance agent issued to a person who becomes, after such issue, the spouse of such employee or of the holder of such office shall become void on the expiry of thn!e months from the date on which such person becomes the spouse of such emp-35 loyee or the holder of such office (3) every insurance agent who immediately before the appointed day was, and continues to be on the expiry ot three ,months from that day an employee of the nature referred to in clause (a) or clause (b) of sub-section (1), or the holder of an office of the nature refened to in 40 clause (b) of that sub-section, or the spouse of any such employee or ot tlie holder of any such office shall, on the expiry of three months from the appointed day, cease to be an insurance agent expianation-for the purpo'ses of this section-(i) "employee of a statutory corporation" includes any person 45 employed for any of the purposes of the act by or under which such corporation is established or constituted; (ii) "government company" meaus a government company, within the meaning of section 617 of the companies act, 1958; (iii) "'statutory corporation" means a corporation establiahed 01' constituted by or under a central, provincial or state act 64 (1) no person who is-5 emplo, no&  tab "'",patt ia politics (a) an employee of a corporation or of the board or of a clafm's tribunal or the appellate claims tribunal or a semett mattera tribunal; or (b) a member of a corporation or of the board or (c) a member of a claims tribunal or the appellate claims 10 tribunal or a service matters tribunal, shall be a member of, or be otherwise associated with, any political party or any organisation which takes part in politics nor shall he take part in, subscribe in aid of, or assist in any manner, any political movement or activity 15 (2) if any question arises whether a party is a political party or whether any organisation takes part in politics or whether any movement or activity falls within the 'scope of sub-section (1), the decision of the central go'''ernment thereon shall be final (3) no such person as is referred to in sub-section (1) ~hall canvu5 110 or otherwise interfere with or use his influence in connection with, or take part in, an election to any legislature or local authority: provided that-(i) such person qualified to vote at 'such election may exercise his right to vote, but where he does so, he shall give no indication 25 of the manner in which he proposes to vote or has voted; (ii) such person shall not be deemed to have contravened the provisions of this section by reason only that he assists in the conduct of an ele<>tion in the due performance of a duty imposed on him by or under any law for the time being in force go (4) the provisions of sub-sections (1), (2) and (3) shall be deemed to form a part of the conditions of service of the persons speciftecl in clause (a), clause (b) and clause (c) of sub-section (1) and any contravention by any such person of any provision of sub-section (1), or, as the case may be, sub-section (3), shall be deemed to be a breach of the 35 terms and conditions of such service and shall be dealt with accordingly expianation i-the display by such person on his person, vehicle or residence, of any electoral symbol shall amount to using his 1nfllmlllce in connection with an election within the meaning of this section explanation h-for the purposes of this section, "legislature" 40 means--(i) either house of parliament , (ii,) the legislative assembly of a state, or in the case of a ~tate having a legislative councit, either house of the legislature of that state, (iii) legislative assembly of a union ~rritory constituted under the government of union territories act 1963 , , , (iv) the metropolitan council of delhi constituted under section 3 of the delhi administration act, 1966, or (v) district councils and regional councils in the states of assam and meghalaya and in the union territory of mizoram as provided in the sixth schedule to the constitution,  the case may be 65 (1) the central goverrunent may, by notification, make rules to = , 10 carry out the provisions of this act rules (2) in particular, and without prejudice to the generality of the foregoing powers, such rules may provide for all or any of the following matters, namely:--(a) the term of office of the chairman and other members ci a 15 corporation, as required by sub-section (1) of section 7, and the salaries and allowances which the chairman of a corporation shall be entitled to receive and the conditions of his service in respect of leave, pension, provident fund and other matters and the allowances which the other members of a corporation shall be entitled to 20 receive, as required by sub-section (4) of section 7; (b) the matters specified under sub·section (1) of section 9 sub· ject to which each corporation shall carryon life insurance business and the conditions subject to which investment of its funds shall be made by a corporation, as required by clause (b) of sub-section (2) 25 of section 9: (c) the fees and allowances to be paid to the members of a committee constituted under sub-section (4) of section 13 for attending its meetings or for any other work; 30 (d) the appointment of secretary and other officera and employees, by a corporation to enable it to discharge its functions, as requirei by sub-section (3) of section 14 and the terms and conditions of service of the executive directors, secretary and other officers and employees of a corporation, as required by sub-section (4) of section 14; 35 (8) the term of office of a member of the board, and the 'salaries and allowances which a whole-time member of the board shall be entitled to receive and the conditions of his service, as required by sub-sections (1) and (5) of section ·16; (/) the fees and allowances to be paid to members of committe (other than the members of a corporation or of the board) for attending meetings and for attending to other work, as required by subsection (2) of section 17; (g) the times and places at which the board shall meet and the ~edure in regard to the transaction of business at its meetings which shall be observed by the board, as required by sub-section (l) of section 18; (h) the terms and conditions of service of secretary and otlier 5 officers and employees of the board, as required by sub-section (2) of section 19; (i) the manner in which the board shall review the functioning of a corporation and the service which the board shall render to a corporation, as required by sub-section (1) of section 20; 10 (j) the functions, other than those specified in sub-section (2) of section 20, which may be performed by the board, as required by sub-section (2) of section 20; (k) the matters subject to which payment of an amount determined by the central government shall be made by a corporation 15 to the !:soard, as reqwred by suo-section (1) of sectlon 21; (l) the form in whlch an appllcation under sub-~tion (1) of section 24 shall be made to the claims tnbwull and the manner in which such applicatlon shall be verified and the fee wluch shall accompany such app!lcatjon, as required by sub-section (2) of section 20 ~; ,  ' ,, ,~,,~-,  (m) the form in which an appeal shall ~ filed to the appellate claims tribunal, the nupmer in which the memorandum of such appeal shall be verified and the fee which shall accompany such memorandum of appeal, as required by sub-section (2) of section 28; !l5 (n) the form in which an application shall be made to the service matu!rs tribunal, the manner in which 'such application shall be verified and the fee which shall accompany such application, as required by sub-section (4) of section 32; , (0) ,the matters subject to' which every tribunal 8hall bani so power to regulate its own procedure and the procedure of the benches thereof, including the places at which it or its benches shall held its, or their, sittings, as required by sub-section (2) of seqtion 35;  (p) the conditions and limitations subject to which costs may 35 be awarded by any tribunal, as required by 8ub-section (1) of section 39; (q) the form in which a report giving an account of its activities during the previous financial year shall be submitted by a corporation and the board, as required by sub-section (1) of section 43; 40 (r) the terms and conditions of work of the insurance agents of a corporation including those who become insurance &genjts of a corporation on the appointed day, as required by sub-section (3) of section 57 of this act, read with section 42 of the insurance act;  (8) such other matters as are required to be, or may be, pre~ 45 crjbed _ (3) the power to make rules conferred by sub-section (2) shall include power- (i) to give retrospective effect to the terms and conditions of service of the emllloyees or the terms and conditions of work of in- 50 surance agents under such rules; (ii) to amend by way of addition, variation or repeal such terms and conditions of service or work with retrospective ef!ect from a date not earlier than the appointed day   (1) every corporation may, with the previous approval of the s central government, by notification, make regulations, not inconsistent with the provisions of this act and the rules made thereunder, ~o provide for all matters for which provision is expedient for the purpose of giving effect to the provisions of this act (2) in particular, and without prejudice to the generality of the 10 foregoing power, such regulations may provide for all or any of the following matters, namely:-(a) the powers and functions of a corporation which may be delegated to the officers in charge of its divisional offices and branch offices; (b) the method of recruitment of employees and insurance agents of a corporation; (c) the manner in which the fund of a corporation shall be maintained; (d) the maintenance of separate funds and accounts at each of the divisional offices and branch ofllces of a corporation; 20 (e) the jurisdiction of each divisional office and branch offic of a corporation;  <i> the conduct of business at meetings of a corporation; (g) the formation of committees of a corporation and the delegation of powers and functions of the corporation to such committees, and the conduqt of business at meetings of such committees; (h) the form and manner in which policies of life insurance may be issued and contracts binding on a corporation may be executed; (i) the classification of policies of life insurance, whether issued by a corporation or transferred to a corporation from the diuolved corporation, for ,the purpose of declaring di1ferential bonu8el, wherever necessary; (j) the manner in which and the intervals within which th accounts of various divisional offices and branch offices of a cor· poration may be inspected and their accoun ts audited; (k) the conditions subject to which any payment may be made bya corporation (3) 'the power conferred by this act to make rules in relation to the 40 d1a~s in respect of which regulations could be made under the life insurance act shall be deemed, for t~ purposes of this act to carry with it the powers to amend, with retrospective effect from a day not earlier {than the appointed day, the regulations, if any, made under the life insurance act and in force immediately before the appointed day, 45 add such regulations,as so amended, shall have effect accordingly notulc:ationa, rub and regulations to be laid before parliament &7 every notification made under iub-oaection (2) t or aub-sectioil (4) t of section fj7, every rule made: udder section 65, and every ftlwation made under section 66 shall be laid, as soon as may' be after ~t ii madet before each house of parli&ment,while it is in leslion, for a-total period of thirty days which may be comprised in one session or id two 5 or more successive sessions, and if, before the expiry of the· e  immediately following the session or the successive sessions aforeuid, b()tth houses agree in making any modification in the notification, rule or regulation or both houses agree that the notification, rule or resujation should not be made, the nowication, rule or reiulation ihall ur- 10 after have effect only in such modified form or be of no effectt as the case may be; so, however that any such modification or annulmen~ ahall be without prejudice to th~ validity of anything previously done \ldder that notification, rule or regulajtion act to override all other enactment, etc power to reldove ciijicuitiea gs the provisions of this act and the niles made thereunder 1hall 15 have effect notwithstanding anything contained in /the lndustrial dillputes actt 1947 or in any other enactment (other than this act) foiithe •• ei", time being in force, or any judgment, decree or order of any cowi, tribunal or other authority or any agreementt aettlement, award or otlwr instrument for the time being in force so 69 (1) if any difficulty arises in giving effect to the provisions of tilis act, the central government may, by order, not incons1stedt wita the provisions of this act, remove the diftlculty: provided that no such order shall be made after the expiry of a period of two years from the appointed day 85 (2) every order made under this section shall be laid,u loon ulbilj be after it is made, before each house of parliament 70 notwithstanding the repeal of the life insurance act, by _boo section (1) of section 3t-(a) anything done or any action taken under the aet 10  so pealed; ,qt "ik (b) any sums due to, or payable by, \he diiiolved corporation, immediately before jule appointed day; (c) any contract or agreement entel1ed into, or altllllil_t made, by the dissolved corporation, and in force immediately befon 35 the appointed day; (d) any rules made under the life irwuranee act, anel in foree immediately before the appointed day; (e) any regulations or any other proviliolll with r  pect to the terms and conditions of service of employees and the iinu ael fo conditions of work of insurance agents of the dissolved corporation, as in force immediately before the appointed day; (1) any other regulation" u in force immediately before tbi appointed day,  ~hall, inti so far as ththey are relatable to a zonal oftlce of the dissolved 45 orpora on, and e officers, employees and agents in, or attached to such office, be deemed, without prejudice to the provisions of the nnt schedule, to have been done or taken, o~, as the cue may be due to or i-ayable by, or entered into, or made by the corresponding co~ra lon, and ~v~~ such rule, regulation, contract, agreement or arrangement - :~al1~u until it is duly altered under this act, have effect notwithstandin, 5 y j dgment, decree or order of any court or tribuat and llotwithsta1l4-in, anything contained in the indultrial dilput  act, id47 or any other law or any agreement, se~tlement, award or other instrument for the time being in force e,rplanation-for the purpol'jes ot this act, unless the context other-5 wise requires, "corresponding corporation", in relation to a zonal oftlce of the dissolved corporation, means the corporation which has it head office at the place at which that zonal office was located immediately before the appointed day  10 the first scheduli! (see section 3) transfer of the capital, the oi'ficers and 0'l"hzr 1lmploy!:i:b, and 'mil aii8ilts and liabilities, of the dissolved corporation and omer ma'l"l'ersi1 in this schedule, unless the context other~ise requires,-definiti onl (0) "corresponding corporation" has the meaning assigned to it 15 in the ezplanatlion to section 70: (b) "paragraph" means a paragraph of this schedule; (c) "sub-paragraph" means a sub-paragraph of a paragraph: cd) "zonal oftlce" means a zonal oftlce established under sub-rction (2) of section 1& of the life insurance act and include divt-20 ional offices, branches and other offices in each zone 2 out of ,the capitblofrupees five crores provided by the central government to the dissolved corporation, there shall stand transterred on the appointed day, to each ot the corporations, a sum of rupees one erore capital provided by central govern_ mentto the dil-60lved corporation to be transferi"ed'to the corporations 1,5 3 (1) subject to the other provisions ot this schedule, every ofticer or other employee of the dissolved corporation,-alloea! ion 0 f officers and other employees of the dillolved corporation (a) who was employed immediately betore the appointed day in a zonal office, shall become on and from that day, an oftlcer or other employee, as the case may be, ot the corresponding corporation; so (b) who was employed immediately before the appo~ted day, in any office, other than a zonal office, shall become, on and from the ,appointed day, an officer or other employee, as the case may be, ot such corporation, as the central government may, by general or special i order published in 'the oftlcial gazette, specify, and until any order is made with respect (to any such offtcer or other employee, he shall be deemed to have become, on and from the appointed day, an officer or other employee of the board (2) an order under clause (b) of sub-paragraph (1) may be made with retrospective effect from a date not earlier than the appointed day, (3) in making an order under clause (b) of sub-paragraph (1) for the purpose of allocating any officer or employee to anyone of the corporations, regard 'shall be had to the need ,for the efficient discharge 5 of its functions by such corporation and the public interest and other relevant matters,' (4) notwithstanding anything contained in the foregoing sub-paragraphs, it shall be open to any officer or other employee of ,the dissolved corporation to opt in favour of not being an officer or other employee 10 of the concerned corporation by giving one month's notice of such option to, such corporation: provided that such notice shall be given,-, ' (a) before the e""piry of three months from the appointed day, or (b) where such ofticer or other employee is an oftlcer or other 15 employee referred to in clause (b) of sub-paragraph (1) within three months from the date on which an order, applicable to him, is made under that clause, (5) the option exercised under sub-paragraph (4) by an oftlcer or other employee shall take effect on the expiry of the period of notice of one 20 month, but· the takjn~ effect of such option shall not prejudicially affect any disciplinary or other proceedings which may be pending against him on the date on which the notice was given, or which may be taken against iuch officer or other employee in respect of anything done or omlltted to be done by him before his option had taken eflect, ii!,> (6) an otftcer or other employee who exercises the option referred to in sub-paragraph (4), shall- (a) be entitled to the payment of an amount equivalent to the salary and allowances which he would have drawn for a period of three mor1ths if he had continued in service for that period, from so the date on which his option takes effect, but where he would have continued in service for a period of less than three months: such amount shall be equivalent to the salary and allowances which he would have drawn for the period for which he would have continued  in lervice; s" (b) be paid, by way of gratuity, an amount calcuiated in accord ance with the rules which would have applied in his case if the life insurance act had not been repealed and he had retired fpom service on the date on which his option took effect, and for this purpose the requirement as to the minimum period of service which sliould have 40 been rendered for becoming entitled to gratuity under those rules sha1l not apply and such gratuity shall be payable on the 'basis of the b~ic pay drawn by him immediately before the da, on which his option took effect; , (e) be entitled to such other terminal benefits other than gra- 45 tuity, as would have been payable to him if th~ life insurance  act had not been repealed and he had retired from service on the date on which his option took effect: provided that in the case of any ofticer or other employee against whom any disciplinary proceeding is pendini immediately before the appointet3 day, or against whom a disciplinary proceeding may be taken thereafter, the paymen t of salary, allowances, ifatuity or other terminal 5 benefits under this paragraph shall be subject to the result of the said proceedings transfer 01 4 (1) on the appoimed day, the rights and liabilities of the dissolved corporation in respect of the policies of life insurance issued by it, and in force immediately before the appointed day, which were being serviced a'~l"ti and liabilitil"1 of the dillolved corporation 10 by a zonal office shall subject to the other provisions of this schedule, stand transferred to, ~nd shall vest in, the corresponding corporation (2) save as otherwise provided in sub-paragraph (1), the assets and liabilities of the dissolved corporation, as on the day immediately before the appointed day, shall be allocated amongst the col't"esponding 15 corporations in such manner and to 'such extent as the central government, having regard to the recommendation made by the committee constituted under sub-paragraph (3), may, by order published in the official gazette, determine and such order may, provide for the retransfer to a corresponding corporation of any assets and liabilities which dnd 10 been previously allocated to any other corresponding corporation under any provisional order made under sub-paragraph, (5) (3) the central government shall constitute a committee conlistlng of not less than three and not more than ftve persons who, in its opinion, have special expertise in the matter of evaluation and allocation of asset 2~ and liabilities of bodies corporate, for the purpose of evaluating and recommending the allocation of the assets and liabilities of the dissolved corporation amongst the corresponding corporations in accordance with the provisions of sub-paragraph (4) (4) the committee shall-3(; (a) determine the value of the assets of the dimolved corporation; and in determining such value, the committee shall have due regard to the net yield from loans and investments, (b) determine, in accordance with the actuarial principles, the liabilities in· respect of the life insurance policies, which, by virtue ~i of this act, stand transferred to, and vested in, each corresponding corporation, •  and on such determination, make a recommendation to the central government for the allocation, in an equf/table manner, of such assets amongst the corresponding corporations, having regard to the liabilities -4-0 which, by virtue of this act, stand tran!9ferred to, and vested in, each correspondinf,t corporation: provided that the allocation of the assets and liabilities of the dissolved corpor~ons amongst the corresponding corporations shall be so made as ~o ensure that immovable properties are allocated, as far as 45 practicable, on "as is where is" basis and such allocation shall be 10 made as to ensure that 'ihe deficiency if any, in the value of any immovable property allocated to a corresponding corporation is made good by the allocation to it of other asllletr of thp dissolved corporation, (5) the central government may it it conaiden neceelary or expedient so to do for the efficient transaction of business of the corre  ponding corporations, pending the making of an order under sub-paragraph (2), by a provisional order published in the ofbcial gazette, allocate amongst the corresponding corporations the assets and liabilities 5 of the dissolved corporation referred to in sub-paragraph (2), and such provisional order shall cease to have effect 'on and from the date of publication in the official gazette of the order made 'under lub-paragraph (2), ex~ as respects things done or omitted to be done under iuch provisional order 10 (6) any person aggrieved by the order made by the central government under sub-paragraph (2) may, within thirty days from the date on which the order is published in the oftlcial gazette, make a repreeentation ito the central government for the review of the order on any of the grounds specified in sub-rule (1) of rule 1 of order xlvii of the 15 5 efgob first schedule to the code of civil procedure, 1908, and on receipt of such representation the central government shall, after givin~ the person making the representation an opportunity of being heard, dispose of the representation as expeditiously as possible, and where on such review, the central government is of opinion that it is necessary ~o so to do, it may modify i the order made by it under sub-paragraph (2): and pubush the order as so modified in the offtcial gazette '(7) all transactions and other acts which immediately before the appointed day could have been entered into or done by a zonal of!lce in relation to any assets tiabtuties, business or any other matter of, ~5 or pertaining to, the dissolved corporation, may, on and from that day, be entered into or done in respect -f 'such assets uabilities, business or other matter by the corresponding corporation as if such assets liabilities, business or other matter were by virtue of this sub-paragraph, the assets, liabilities, business or other mattet of or pertaining to, the 30 eorresponding corporation (8) all agreements arrangements contracts and covenants entered into and in force immediatelv before the appointed day bv any office of the dissolved corporation, other than a zonal office, and all transactions entered into, and in force immediately before the appointed day per- 35 taining to any office, other than the zonal office, and all assets liabilities business or any, other matter of or pertaining to any office of the dissolved corporation other than a zonal oftlce shall be deemed, on and from the appointed day to have been entered into or made bv 'such corresponding corporation and shall become on and from that day, the 40 assets, uabilities, business or any other matter, as the case may be of such a corresponding corporation, as the central government may, bv order ,direct (9) no suit appeal, application eftcution or other legal proceeding by or agai'n'st the dissolved corporation which is pendin~ immediately 45 before the appointed day shall abate or be discontinued or be in any way 'pl'ejudicially affected by reason of the transfer of the ri ~hts, assets and uabiutiesof the dissolved corporation to the corresponding corporation or of anything contained in this act and f!very such suit appeal, application, exeeution or other lea'al proceeding may be continued, so prosecuted or enforced by or against ithe corresponding corporation to which such rights, assets and liabilities have been tranllff'rred and vested in under this act kzp14nation-for the pul1poses of this sub-paragraph, "legal proceeding" includes any proceeding before an arbitrator or before any tribunal constituted under the life insurance act or any other law for the time being in force 5 (10) the business of the dissolved corporation outside india, immediately before the appointed day, and the assets, rights, liabilities and obligations of the dissolved corporation in relation to such business and the officers, other employees and insurance agents, if any, employed by the dissolwd corporation in connection with such business, immediately 10 before the appointed day, and all other matters relating to the said business shall, in relation to the branch specified in column 1 of the table below become the assets, rights, liabilities and obligations or business, or, as the case may be, officers, other employees and insurance agents of the corporation specifted against its name in the correspond-j 5 ing entry in column 2 of the said table:  table1 2 1 loudon branch l mauritius branch 110 the northern life insurance corporation of india the western life insurance corporatioll of india the central life insurance corporation of india 3 fiji branch ---------(11) if, according to the laws of any country outside india, the proviaions of this schedule and of any scheme made thereunder are not 115 effective to transfer to, and vest in, a corporation specified· in column 2 of the table under, sub-paragraph (10), any asset situated in that country or liability incurred therein which formed immediately before the appointed day, a part of the business of the dissolved corporation, the atfairs of the dissolved corporation in relation to such a:;set or liability 30 shall, on and from the appointed day, stand entrusted to such officer of such corporation (eing a corporation mentioned in the said table), as the central government may, by notification, appoint in this behalf, and the officer so appointed may exercise all powers and do all acts and things as may be required by the laws of such country for the purpose 35 of effec~vely tr~sferrin~ or vesting such ass~ts or liabilities in the corporation of which he is an officer and may either himself or through any person authorised by him in this behalf realise such asset and discharge such liability for and on behalf of 'such corporation i (1) the rights and liabilities of the dissolved corporation in 40 respect of a policy of life insurance which stand transferred to,- and vested in, under sub-paragraph (1) of paragraph 4 to a corresponding corporation, shall be the rights and liabilities, respectively, of such coj'll'espon~g icorporation and/ such corresponding corporation 11 exercise such rights, or, as the case may be, shall be liable in respect 45 of such policy of life insurance to the same extent and in the same manner as the dissolved corporation was entitled to exercise such rights, or, as the case may be, liable, and shall do au such acts and things in respect of such policy of life insurance as the dissolved corporation 'would have been required to do in respect thereof if this act had not been passed 50 (2) notwithstanding anything contained in sub-paragraph (1) of this paragraph, or in sub-paragraph (1) of paragraph 4 the correspondin, corporation to which the liability in respect of a policy of life in-effect of the transfer to the corres_ pondin, corporationof policiew of life insurance issued by the dissolved corporati • surance stands transferred to, and vested in under this act shall, if the holder of such policy of life insurance makes within six months from the appointed day, an application to such corporation for the transfer of the liability in respect of such policy of life insurance to any other corporation established under this act transfer such liability to such other cor-5 poration and s"jch other corporation shall be bound to accept buch transfer: 'j'radifer or liaaurance ~of the diuoyled corporation provided that the beneftts admissible to an insurance agent in relation to the policy of life insurance so transferred, 'shall continue to be admissible to him and the corresponding corporation to which the 10 policy of life insurance i8 80 transferred shall be ;uable to make uch benefits available to that insurance agent (3) the option exercised by a policy-holder by making an application under sub-paragraph (2), shall be final 6 (1) subject to the other provisions of this paragraph, every 15 person who immediately before ·the appointed day is an insurance agent of the dissolved corporation shall, on and from the appointed day, become an insurance agent of the corresponding cor;poration in relation to the zonal office in the branch whereof the records of his work as an insurance agent are maintained immediately before the said day, and 20 shall continue to function as such insurance agent on the same tenns and conditions as would have been applicable to him if this act had not been passed and shall continue to do so unless and until his appointment iii such insurance ugent of such corresponding corporation is terminated or until such terms and conditions of hi work as an insurance agent lis are duly altered 'under this act (2) the period of work rendered by an insurance agent in the dissolved corporation shall be counted towards the i period of his work in the corresponding corporation of which he becomes an insurance agent under sub,paragraph (1) in the same manner as it would have been 30 counted in the dissolved corporation if this act had not been passed (3) an insurance agent of the dissolved corporation shall not be entitled to claim any compensation by reason of his becoming, by virtue of the provisions of sub-paragraph (1), an insurance agent of the c0rre8-ponding corporation or by reason ot any alteration of his terms and 35 conditions of work as provided in that sub-paragraph and do such cl~im shall be entertained by any court, tribunal o·r other authority  the second schedule (see section 9) 'i'm: zonis and dnutons within the zones in which dn'enslyj: development of un: insurance business js to - mad! by the corporations _-------_ ----| namo                  | or           ||-----------------------|--------------|| tho                   |              || corporation           |              || zone                  |              || divisions             | within       || the zone              |              || -~----               |              || i                     |              || ii                    |              || iii                   |              || 2                    |              || the                   |              || eastern               |              || lifo                  |              || calculi a             |              || calc:uua              |              || 5                     |              || 1l1lu1'ldcc           | corporation  || or                    |              || india                |              || asanlol               |              || cuuick                |              || oaubati               |              || jajpaisur             |              || i                     |              || j                     |              || llllllbedpur          |              || 10                    |              || mazafi'arpul"         |              || pama                  |              || silchar              |              || 3                    |              || tho                   |              || northern              |              || lifo                  |              || delhi                 |              || dc1hi                 |              || insurance             |              || corporation           |              || 15                    |              || of                    |              || india                |              || ajmer                 |              || cbandiprh             |              || lulhladur             |              || laipur               |              || 4                    |              || 'tho                  |              || southem               |              || lifo                  |              || madra~                |              || madras                |              || 20                    |              || insui'iiilcd          |              || corpora&iod           |              || or                    |              || india                |              || baaaa10ftl            |              || coimbatoro            |              || hyderabad             |              || madurai               |              || 25                    |              || masujipatn,m          |              || triyaddrum            |              || udupi                 |              || 'l'buqavur            |              || dhanrid               |              || go                    |              || lco:rbikode          |              || vukhapatnam           |              || cuddapah             |              || 5                    |              || 1110                  | western lifo || bomba)'               |              || bonlba~'              |              || 35                    |              || laaurance corporation |              || ahmeda"d              |              || or                    |              || india                |              || naapur                |              || n                  |              || ill                   |              || pune                  |              || 4                     |              || 0                     |              || rai1cot               |              || sa,·                |              || sural                 |              | statement of objects and reasonsthe life insurance business in india was nationalised in 1956 to provide absolute security to the policy-holders and to spread insurance much more widely and in particular to the rural areas since nationalisation, the life insurance corporation has a fairly impressive record of extending insurance services to ·the community at the end of 1955 the individual assurance business in force was 48 lakh policies it has now increased to well over 245 lakh policies at the end of march, 1983 similarly the sum assured has increased from rs 1,220 clores to rs 26,000 crores group insurance business which was negligible at the time of nationalisation has increased to provide cover to over 70 lakh lives and the sum assured 'under these schemes is rs &,613 crores the life fund also has increased from rs 380 crores to rs 8,600 crores 2 the corporation over the years has grown considerably in 'size and it has,' therefore, been decided in the interest of operational em-ciency, and, in order to strengthen the industry's ability to meet the challenges of the future, to re-structure the existing life insurance corporation into more manageable units it is expected that this will result in more effective spread of insurance into the rural area's where only limited headway has been made so far 3 the bill provides for the re-structuring of the corporation into five independent units with a co-ordinating body to provide supervision and guidance on matters of common interest this reorganisation is also expected to impart a greater degree of dynamism into the working of the industry and improve the quality of service rendered to the policyholders 4 on the establishment of the five independent units, the assets and liabilities of the life insurance corporation of india would be equitably distributed amongst these units on the basis of actuarial valuation thereof made by a committee of experts persons employed in any zone of the erstwhile corporation would be so employed in the unit established for that zone that they are not disturbed persons employed in the central office of the erstwhile corporation would, however, be distributed among the life insurance board and the different units having regard to the administrative requirements of the board and of luch units 5 the bill further provides for 'setting up of claims tribunals, appellate claims tribunals and service matters tribunals far speedy settlements of disputes relating to life insurance claims of policy-holders li<nd service matters of the employees 6 the notes on clauses appended to the bill explain in detail the various ,provi'sions thereof new delhl; pranab mukherjd the 2!7th 4ugust, 1983  president's recommendation under article 117 of the constitution of indiil[copy of letter no f4(3) iins-llii83, dated the ,26th august, 1983 from shri pranab kumar mukherjee, minister of finance to the secretary, lok sabha] , the president, having been informed of the subject matter of the proposed life insurance corporations bill, 1983, recommends the introduction of the bill in lok sabha under clause (1) of article 117, and its consideration under clause (3) of article 117 of the constitution of india the above said recommendation was made by the president on the 25th august, 1983  - clause 2-this clause defines the expressions used in the billclause 3-this clause provides for the dissolution of the life insurance corporation of india established under section 3 of the life insurance corporation act, 1956 (31 of 1956), and the repeal of the aforesaid act the clause also provides that the capital of the dissolved corporation its officers, employees and insurance agents as well as its rights, liabilities and obligations shall be dealt with in accordance with the first schedule  clause 4-this clause provides for the establishment of new life insurance corporations with head offices at kanpur, calcutta, delhi, madras and bombay clause 5-this clause provides for the authorised capital and the paid-up capital of each of the new corporations clause 6-this clause provides for the constitution of the new corporations, the maximum number of members of each corporation and the conditions to be satisfied by the members clause 7-this clause provides for the term of office and conditions of service of the chairman and other members of the new corporations, excluding e:r officio members their terra of office will not be less than three years and they will be eligible for reappointment the cla"lse also provides for the filling up of a casual vacancy of a member or in the office of the chairman clause 8-this dause provides for the disqualifications and removal of members and also the termination of the appointment of the chairman and his resignation of office clause 9-this clause defines the functions and powers of the new corporations and provides that each corporation shall be primarily responsible for the intensive development of life insurance business within the zone, that is to say the area, assigned to it for this purpose the clause also empowers the central government to isne directions to the new corporations in matters of policy involving public interest 'clause lo-this clause provides for conditions which each )lew corporation may impose to protect its ,investments and for the appointment of its nominee on boards of directors of the assisted concerns the clause also provides for indemnity for these nominees clause h-this clause provides for establishment of divisional offices, branches and other offices by the new corporations clause l2-this clause provides that the chairman of a new corporation-shall be the managing director thereof and shall also be the presi-dent of each of the committees constituted in tenns of clause 13 -, ,  " clause 13-this clause provides for the constitution of an executive committee, an investment committee and such other committees as each new corporation may dt!cide clause 14-this clause provides that each new corporation may appoint executive directors, secretary and other officers and employees according to its requirement clause 15-this clause provides for the constitution of the life insurance board with its office at new delhi the board will consist of the chairman of each new corporation, ex officio, and other members, not exceeding 11 one of the members of the board shall be appointed its chairman clause 16-this clause provides for the conditions of service and the term of office of the mpmbers of the life insurance board, other than ex officio members clause 17-this clause provides for appointment of committees by the life illsurance board for different purposes and the fees and allowances payable to members (other than the members of a new corporation and the board) of the committees clause lb-this clause provides for meetings of the life insurance board and committees thereof and the procedure to be followed at the meetings of the board and the committees clause 19-this clause provides for the appointment of secretary and other officers and employees of the life insurance board and the terms and conditions of their service clause 20-this cl8'use provides for the functions of the life insur-&nce board the board will co-ordinate the activities of the new corporations, review their performance and render advice to the new corporations in matters of common interest, including actuarial matters clause 2,1-this clause provides for the finances of the life insurance board clause 22-this clause provides for the establishment of claims tribunals and qualifications of the members of the tribunals clauses 23 and 24-these clauses provide for the scope of the references to the claims tribunals no suit or other legal proceeding will lie in a civil court in respect of any matter pending before, or decided by, a claims tribunal or the appellate claims tribunal clause 25-this clause provides for the procedure of claims tribunals a claim not exceeding rs 25,000 may be disposea of by a single-bench tribunal clause 26-this clause provides for the procedure for hearing cases by the claims tribunals the order passed by the claims tribunal will, subject to the decision of the appellate claims tribunal, be final clause 27-this clause provides for the constitution of an appellate claims tribunal the clause also defines the qualifications of the members of the appellate claims tribunal and provides for appointment of president and vice-president (s) of the appellate claims tribunal clause 28-this clause defines the scope of the appeals to the appellate claims tribunal and the time-limit within which the appeals may be filed clause 29-this clause provides for the procedure to be followed by the appellate claims tribunal for hearing the concerned parties and the service of the orders passed by the appellate claims tribunal clause 30-this clau"e provides for the procedure of the appellate claims tribunal regarding allocation of work and disposal of appeals the c!au<;e also provides that a claim not exceeding rs 50,000 may be disposed of by a single-bench of the appellate claims tril1unal  clauses 31 and 32-these clauses provide for the establishmen~ of service matters tribunals, the qualifications of their members and the scope of applications which the employees of the new corporations or thf! life insurance board may make to these tribunals clauses 33 and 34-these clauses provide for the procedure to be followed by service matters tribunals and the service of orders passed by such tribunals clauses 35 and 36-these clauses define the authority of the tribunals every tribunal shall have 'he same powers as are vested in a civil co'urt in connection with oral and documentary evidence, shall have power to regulate its own procedure and every proceeding before a tribunal shall be deemed to be a judicial proceeding clause 37-this clause provides for the procedure where the members of a tribunal differ in their opinion clause 38-this clause provides for the method of determinatir·n 0' equivalent ranks for the purpose of appoin~ment as members of :1 tribunal clause 39-this clause deals with costs awarded by a tribunal clause 40-this clause provides for the establishment of a fund by every new corporation for crediting all receiptq and debiting all payments of the corporation thereto clause 41-this clause provides for appointment of auditors by every new corporation and the life insurance board and the manner in which they will submit their reports clause 42-this clause provides for actuarial valuations of the new corporations once at least in every two years the report of the ac~uaries will be submitted to the central government clause 43-this clause provid~s for the submission by every new corporation and the life insurance board to the central government of the annual reports of their activities annually the clause also provides that the new corporations and the life insurance board will fur?ish to the central government other reports and returns, etc, whlch the central government may, from time to time, require   cla1l8p 44-this clause provides for the manner in which the surplus dlsclosed by the actuarial valuation of the life insurance business of every new corporation shall be disposed of nine~y-five per cent of the surpllll will be allocated to the policy-holders, and the balance will be paid to the central government or will be utilised for such purposes and in such manner as the central government may determine clause 45-this clause provides for the payment to the central government of the profits of the new corporations accruing from business other than life insurance business clause 46-this clause provides that the report of the auditors on the annual acco'unts and the report on the actuarial valuation of the new corporations will be laid before parliament the clause further provides that the reports on the activities of the new corpora~ions and the life insurance board will also be laid before parliament clause 47-this clause provide::; that the new corporations will, subject to the exceptions laid down in the proposed legisla'jon, have exclusive privilege of carrying on life insurance business in india clause 48-this clause provides for permission being granted to any person to carryon life insurance business in india in respect of lives of persons ordinarily resident outside india claw;e 49-this clause provides for the use of an official seal by the various offices of a new corporation clause 50-this clause provides for guarantee by the central government as to the payment of sums assured and vested bonuses under life insurance policies on the registers of the new corporations clause 51-this clause provides that a new corporation shall not be placed in liquidation save by an order of the central government clause 52-this clause provides for penalties for carrying on 'life insurance business in india in contravention of the proposed legislation clause sa-this clause provides for ~nalties for withholding of property, etc, from the new corporations on their establishment clause 54-this clause contains the usual provision relating to punishment of offences by companies clause 55-this clause provides that the jurisdiction of civil courts will be barred in a matter which a service matters tribunal is empowered to entertain and adjudicate upon clause 56-this clause provides for enforcement of the decisions and orders of the tribunals   clause 57-this clause provides for the application of the various provisions of the insurance act, 1938 (4 of 1938) to the new corporations clause sa-this clause seeks to provide that no deductioll of tax wu 1 be made at source under section 193 or section 194 of the incometax act, 1961 (43 of 19(1), in respect of any interest or dividend payable to a new corporation on any securities or shares owned by it or in which it has full, beneficial interest  clause 59-this clause provides for exemption to certain funds and orgal1isations from the provisions of the proposed legislation to enable them to run schemes involving contingencies of life and death, clause • -this clause provides that the proceedinp ofa new corporation, the life insurance boud or a tribunal will not be called in question merely by reason of the existence of any vacancy theretn or any defect in the constitution thereof clause si-this clause provides protection to members, executive directors or employees of the new corporations and the life insurance board for anything done in good faith or intended to be done under the proposed legislation clause 82-this clause provides that the employees of the new corporeltions, the life insurance board and the tribunals shall be deemed to be public servants clause sa-this clause provides for the disqualifications for being eligible for the issue of licence to act as insurance agents and for annulment of any such licence if issued contravening the provision clause 64-this clause provides that the employees of a new corpo~ ration or of the life insurance board or of a tribunal, the members of a new corporation or of the life insurance board and the members of a tribunal shall not take active part in politics clause 65-this clause confers on the central government the power to make rules to carry out the provisions of the bill clause 66-this clause confers on every new co~ration power to make regulations, not inconsistent with the provisions of the proposed legislation and the rules made thereunder, with the previous approval of the central government clause 67-this clause provides that the notifications made under clause 57, rules made under clause 65 and regulations made under clause 66 shall be laid before parliament clause 68-this clause provides for the provisions of the proposed legislation and the rules made thereunder to overri~ all other enact~ ments, etc clause 69-this clause provides for removal of diftlculties clause 70-this clause provides that notwithstanding the repeal of the life insurance corporation act, 1958, the actions, dues and contracts of the dissolved corporation shall devolve on the corresponding new corporations the clause also provides that the rules and regulations made under the aforesaid act shall remain in force until they are duly altered the firb1; schedule: paragraph i-this paragraph defines the expressions used in the first schedule paragraph 2-this paragraph provides for the manner in which the capital of the dissolved corporation will be transferred to the new corporations paragraph 3-this paragraph provides for the allocation of the oftlcen and other employees of the dlssolved corporation to the new corporations which would come into being on the appointed day the paragraph also provides for protecting the emoluments of the officers and other employees and an option that they can exercise in favour of not being an officer or other employee of the concerned corresponding corporation by ;giving a month's notice paragraph 4-this paragraph provides for the distribution of assets and liabilities of the dissolved corporation and the allocation - of the same amongst the corresponding new corporations in an equitable manner in accordance with actuarial principles it also provides for the protection of all transactions, agreements, arrangements, contracts, etc, of the dissolved corporation ·to continue as if they had been entered into by the corresponding new corporations sub-paragraph (to) of this paragraph provides for the distribution of the foreign branches of the dissolved corporation paragrap1t 5-this paragraph provides for the rights and uabilities of the dissolved corporation in respect of life imrilrance policies transferred to the corresponding new corporations and a one-time option to the policy-holders to obtain transfer of their policies to the new corporation of their choice parngraph 6-this paragraph provides for the continuance of the insurance agents in the corresponding new corporations on the same terms and conditions as would have been applicable to them if the proposed legislation had not been passed the second schedule-this schedule specifies, the zones, that is to say the area, referred to in clause 9 wherein intensive development of life insurance business would be the primary responsibility of the respective new corporations clause of the bill provides that the authorised capital of each of the new corporations shall be rs 5 crores and that the paid-up capital of each corporation shall initially be rs 1 crore, to be increased subsequently if the circumstances so warrant the initial paid-up capital of each new corporation will be s'ubscribed oy the central government out of the capital amount of rs 5 crores, provided to the dissolved corporation immediately, therefore, no fresh outlay is involved 2 clauses 22 and 27 of the bill provide for the establishment of claims tribunals and an appellate claims tribunal to deal with disputes relating to life ins'urance claims further, clause 31 provides for establishment of service matters tribunals to deal with grievances relating to service matters oi employees to start with, it is proposed to establish five claims tribunals and five service matters tribunals besides the appellate claims tribunal the estimated non-recurring expenditure on account of the establishment of these tribunals is of the order of rs 30 lakhs and the estimated recurring expenditure is of the order of rs 42 lakhs per annum 3 the establishment of the new corporations and supervision and control over their affairs in terms of the various clauses of the bill would place' additional burden of administration on ~he insurance divi!,ion of the department of economic affairs to ensure that added responsibilities of the division are discharged satisfactorily and smoothly, some marginal additions would have to be made to the existing strength 1)£ officers and s~aff the estimated recurring expenaiture is likely to be of the order of rs lakhs per annum 4 in terms of clause 50, all contracts for assurance on the registers of the new operating units, including those transferred from the corporation, will be guaranteed as to payment by the central government it is unlikely that this guarantee will lead to any liability in fact clause 57 of the bill empowers the central government to apply certain provisions of the insurance act, 1938 (4 of 1938), by notification in the official gazette, to every corporation established under the proposed legislation, subject to such conditions and modifications as may be specified in that notification 2 clause 65 of the bill empowers the central government, by notification in the official gazette: to make rules to carry out the provisions of the proposed legislation sub-clause (2) of this clause enumerates in detail the matters with respect to which rules may be made undier this clause these matters relate, inter alia, the terrr of office and conditions of service of the chairman and other members of a corporation, the matters subject to which investment of its funds shall be made by a corporation, the fees and allowances to be paid to the members of a committee constituted under the proposed legislation t~e terms and conditions of service of the executive directors, secretary and other officers and employees of a corporation, the terms and conditions of 'service of a member of the board, the times and places at which the board shall meet and the procedure in regard to the transaction of business at its meetings which shall be observed by the board, the terms and conditions of service of secretary and other officers and employees of the hoard, the manner in which the board shall review the functioning of a corporation and the service which the board shall render to a corporation, the o~her functions to be performed by the board, the matters subject to which payment of an amount determined by the central government sfiall be made by a corporation to the board, the form in which an application or appeal shall be made to a tribunal constituted under the proposed legislation and the fee which shall accompany such application or appeal, the matters subject to which a tribunal constituted under the proposed legislation shall have power to regulate its own procedure, the conditions and limitations subject to which costs may be awarded by any tribunal constituted under the proposed legislation, the form in which a report giving an account of its activities during the previous financial year shall be submitted by a corporation and the board to the central government and the terms and conditions of i work of the insurance agents of a corporation the power to make rules conferred by clause 6is includes power to give retrospective effect to the terms ~d conditions of service of the employees or the terms and conditions of work of insurance agents and to amend by way of addition, variation or repeal such terms and conditions of service or, work with retrospeptive effect, from a date not earlier than the date of commencement of the proposed legislation 3 clause 66 of the bill empowers every corporation established under the proposed legislation to make regulations, with the previous ~ipproval of the central government, by notification in the official gazette not inconsistent with the provisions of the proposed legislation and the rules made thereunder, to provide for all such residuary matters for which provision is expedient for the purpose of giving effect to the provisions of the proposed legislation these matters, inter alia, relate to the powers and functions of a corporation which may be delegated to the officers in charge of its divisional offices and branch offices, the nrethod of recruitment of employees and insurance agents, the manner in which the fund of a corporation shall be maintained, the maintenance of separate funds and accounts at divisional offices and branch offices, the jurisdiction of divisional offices and branch offices, the conduct of business at meetings of a corporation, the formation of committees of a corporation, the delegation of powers and functions to such committees and the conduct of business at meetings of such committees, the form and manner in which policies of life insurance may be issued and contracts may be executed, the classification of policies of life insurance for the purpose of declaring diftlerential bonuses wherever necessary, the manner in which and the intervals within which the accounta of divisional offices and branch offices ·may be inspected and their accounts audited, and the conditions subject to which any payment may be made by a corporation 4 as the matters with respect to which rules or regulations may be made under clause 65 or clause 66 pertain to matters of procedure or detail, the delegation of legislative power is of normal character 5 clause 67 of the bill provides the usual formula for laying of the said notifications, rules and regulations, as soon as they are made, before each house of parliament 6 clause 69 of the bill empowers the central government to remove by order, not inconsisten~ with the provisions of the bill any difficulty which may arise in giving effect to the provisions of the proposed legislation this is by way of abundant caution and for covering difficulties which i~ is not practicable to visualise at this stage it has, however, been provffiided that no such order shall be made after the expiry "f a period of two years from the commencement of the prop'jsed legislation it has also been provided that a copy of every such order made shall be laid before each house of parliament --- bill to provide with a view to the more effective realisation of the objectivei of nationalisation of life insurance business, for the dissolution of the life insurance corporation of india and for the establishment of a - number of corporations for the more efficient carrying on of the said business and for matters connected therewith or incidental thereto (shrt pranab kumar mukherjee, miniitet of finance) 