 the emergency risks (factories) insurance bill, 1962(as introduced in lok sabha on sm december, 1962)  corrigenda to the emergency risks (factories) insurance bill, 1962 (to be/as introduced in lok sabha)1 page 3, in the marginal heading to clause 3,-for "insu- ance" read "insu-rance" -" 2 page 5, in the marginal heading to clause 5,-for "o'wne " read "owner" --3 page 9, line 10,-- !2! "scheme" read "scheme" 4 page 10, line 31,-for "dae" read "date" -5 page 11, line 8,-after "official gazette" insert " " , - new delhi dece~ber 4, ~~6~ agra ayana 1: ,~~4 (~aka)  bill, 1962 (to be introduced in lok sabha) a billto make provisions for the insurance of certain property in india     against                damage by enemy action                                                   during the                                                                    period of     emerge1lcy    be it enacted by parliament in the thirteenth year of the republic of india as follows:-                           chapter i  preliminary, 1 (1) this act may be called the emergency risks insurance act, 1962 (factories) short title, extent and 4lu11tion (z) it extends to the whole of india (3) it shall remain in force during the period of nperation of the proclamation of emergency issued on the 26th october, 1962, and 10 for such further period as the central government may, by notification in the oftlcial gazette, declare to be the period of emergency for the purposes of this act, but its expiry shall not affect anything done or omitted to be done before such expiry and section 6 of the 10 of 1897 general clauses act, 1897, shall apply upon the ej\-piry of thia act i, as if it had been repealed by a central act 2 in this act, unless the context otherwise requires,-oesniljon, (a) "buildings" includes foundations, plinths, floors, staircases, tanks, engine and boiler beds, chimneys flues atld boundary walls; 22m (b) ls-l (b) "enemy" means-(i) any person or country committing external aggreslion against india; (ii) any person belonging to a country committing such aggression; s (iii) such other country as may be declared by the central government to be assisting the country committing such aggression: (iv) any person belonging to such other country: (c) "factory" means a factory as defined in clause (m) of 10 section 2 of the factories act, 1948; 630fi948 (d) "factory buildings" includes all -buildings comprised in the factory, and such other buildings (including residential - buildings for staff and workmen, hospitals and welfare centres) within a radius of two mi1esfrom the main factory building as is are in the same ownership 'or occupation as the factory and are used for the purposes of the factory: (e) "the fund" means the emergency risks (factories) insurance fund constituted under section 7; (f) "insurable value" of property means the value of the 20 property as ascel'tained for the purposes of insurance under this act; (g) "occupier" of a factory has the meaning assigned to it in clause (11) of section 2 of the factories act, 1948; 6j of t94p (h) "owner" of a factory includes, v1len parts of the pro a$ perty insurable under this act in relation to the factory are owned by different persons, each such person in respect of the part owned by him; (i) "property insurable under this act" means, in relation to any factory, the factory buildings and, except where they sore 30 for the time beinjit ~oods insurable under the emersrencv risks (goods) insurance act, 1962, all plant and machinery' in the factory, all materials in the factory for use in the production or transmission of motive power, or in the maintenance of plant and machinery or in the construction or reconstructioh or maln- 3s tenance of factory buildings, and l1,1ch other plant, machinery or materials as may be specified in the scheme; < (j) "quarter" means a period of three months commendng on the first day of january, april, july or october; (k) "the scheme" means the emelienc:y 1usks (factoriel) lnaurance scbeme made under this act; (l) "emergency risks" means such risks arising from-(i) action taken by an enemy or action taken in combating an enemy or in repelling an imagined attack by an enemy; (ii) any explosion or fire which involves any explollvea or munitions or other dangerous things required for the purposes of defence against any action of an enemy and whicb 10 bappens or ia eaused by, through, or in connection with the manufacture, storage or transportation of any such explosives, munitions or other dangerous things; (iii) measures taken under proper authority to avoid the spreading of, or otherwise to mitigate, the consequences z, of damage occumng (whether accidentally or not) as- the direct result of any such action as is described in sub-clause (i) or of any such explosion or fire as is described in subclause (ii); (iv) precautionary or preparatory measures taken 20 under proper authority with a view to preventing or hindering the carrying out of any attack by an enemy, being measures involving risk to property; (v) precautionary or preparatory measures involving the doing of work on land and taken under proper authority 25 in any way in anticipation of enemy action, being measures involving risk to property; (vi) precautionary or preparatory measures taken under proper authority with a view to denying facilities to an enemy, being measures involving damage to or dimlnu-30 tion of the value of property  chapter ii emergency risks (factories) insurance scheme3 (1) the central government may, by notification in the bmcr,cdcj oftlcial gazette, put into operation a scheme to be called the emer- ~~)(f:~-35 gency risks (factories) insurance scheme, whereby the central ranee government undertakes in relation to factories the liability· of scheme insuring property insurable under this act against emergency risks, to the extent provided by or under this act (2) the scheme may extend to the undertaking by the central government in relation to any pel:son ln india of the liability of insuring such person against emergency risks in respect of any property insurable under this act which is not owned by him but in which he has an interest, up to the extent of such interest s (3) the scheme shall be such as to secure-(a) that the liability of the central government as insurer shall not extend to more than eighty per cent of the insurable value of the property insurable; (b) that any 'liability of the central government as insurer 10 under the scheme is determined by a policy of insurance issued, in the form and in respect of a period not exceeding the period specified in the scheme, by a person acting on behalf of the central government: provided that the form of policy may be such as to limit the is extent and nature of the indemnity provided by the central government and to impose conditions subject to which the indemnity is provided; , (c) that any premium under a policy so issued is payable at such rate as may, for the time being, be specified in the scheme; 20 (d) thet the amount of anyone premium payable under a policy so issued is not less than such sum as may be specified in the scheme (4) the scheme may provide-(a) for undertaking in relation to works in course of cons- 25 truction which, when completed, will become factories, and such plant and machinery appertaining to such works as may be specified in the scheme, the same liabilities as are undertaken by the scheme in relation to factories; (b) that the payments due under a policy of insurance 30 issued under the scheme, may at the option of the central government, take either of the following forms, namely:-(i) payment, within the limits of the liability assumed by the central government and in such manner and by such instalments as the central government may think fit, of the 35 cost necessary to restore the property as far as practicable - to the condition in which it existed before the occurrence of the damage, or ( (ii) compensation, within the aforesaid limits, for the loss in value, ascertained on the basis of values and prices ruling at the time at which the policy of insurance was taken out, or at which the loss occurred, whichever is less, suffered 5 by the property as a result of the damage, after due allowance has been made for depreciation during the period of insurance cover; (e) that payments due under a policy of insurance under the scheme may be postponed to any time before the expiry of one 10 year from the date on which this act ceases to be in force, or, subject to payment of interest at the rate of two per cent per annum from the expiry of the said year, to any later date; (d) for making it an express or implied condition of any policy of insurance issued under the scheme-is (i) that the owner or occupier of a factory shall comply with all regulations or instructions made or issued under the authority of government for safeguarding the property against damage from emergency risks, or (ii) that, where the central government exercises its 20 option to pay the cost necessary to restore the property to its original condition the owner of the factory shall, if so required by the central government, reconstruct the factory or remove the factory to and reconstruct it in another fucality  25 (5) different forms of policies may be specified in the scheme under sub-section (3) in relation to different classes of factories (6) the central government may, by notification in the official gazette, add to, amend or vary any scheme made under this act 4 the central government may, by notification in the official employment 30 gazette, employ or authorise the employment of any person to act of ~nt by as its agent for any of the purposes of this act, and may pay to the ~~vem!e~t person so employed such remuneration as it may think fit - 5 (1) while the scheme is in operation, ev,ery owner of a factory, duty of except a factory belonging to government or a factory exempted t:~;; ot, 35 under section 15 from the provisions of this act, shall, by such date murl as may be specified in this behalf by the central government by pint 1::r -notification in the official gazette, or, in respect of premises becom- geney r  ing a factory or property becoming property insurable under this act after that date or in a case to which sub-section (2) refers, be~ 40 fore the commencement of the quarter next following that in which the premises become a factory or the property becomes insurable under this act, or as the case may be, in which the reconstruction of the factory is completed take out a policy of insurance against emergency risks issued in accordance with the scheme, whereby he is insured in respect of all property insurable under this act, which s appertains to the factory for a sum not less than the insurable value of such property: provided that where the owner of the factory is not himself the occupier of the factory, the occupier of the factory shall, unless the owner has already taken out" a policy of insurance as required by this 10 sub-section, himself take out the policy, and in such a' case the occupier shall be deemed to aetas the agent of the owner and shall be entitled to receive from the owner all sums paid as premiums on the policy (2) the obligation imposed by sub-section (1) includes, when is the owner of the factory is required by the central government to reconstruct a factory which has suffered damage, an obligation to take out an additional policy of insurance as required by the subsection in respect of the reconstructed factory (3) when a factory in respect of which a policy of insurance 20 against emergency risks has been 'taken out as required by this section is transferred from one owner to another or there is a change of occupier of the factory, the policy may be transferred to the new owner or occupier and such new owner or occupier shall succeed to all rights and liabilities under and in relation to the policy as if the 25 policy had been in the first instance taken out by him (4) whoever contravenes the provisions of sub-section (1) or the proviso thereto, or, having taken out a policy of insurance as required by that sub-section, fails to pay any instalment of premium thereon which is subsequently due, shall be punishable with fine which may 30 extend to two thousand rupees and with a further fine which may extend to one thousand rupees for every day after the first on which the contravention or failure continues, and such punishment shall be without prejudice to any other penalty or liability incurred in consequence of such contravention or failure 35 (5) where any offence under sub-section (4) is tried by a presidency magistrate or a magistrate of the ftrst class, then, - notwithstanding anything contained in the code of criminal proce<iure, 1898 the magistrate trying the offence mav pass any f  50 1st  sentence authorised by that sub-section 40  (1) after the date on which the scheme is put into operation, ratrictl008 no person shall, except as a person authorised by the central gov- :: =:a ernment as its agent to issue policies in pursuance of the scheme, 'dlu1'ldcc carry on the business of insuring factories in india against bulln  s emergen~ risks in respect of property insurable under this act (2) whoever cont~avenes the provisions of sub-section (1) shall be punishable with fine which may extend to five thousand ru~b and with a further fine which may extend to one thousand rupees for every day after the first on which the contravention continues 10 7 (1) the central government may, ·after due appropriation emer,ency made by parliament by law in this behalf, transfer in each financial ~~ i<::!oyear, to a fund to be called the emergency risks (factories) in- rance puud surance fund (hereinafter referred to as the "fund") such sums, as may be considered necessary, not exceeding the sums received by i s the central government by way of insurance premiums under the scheme, or by way of payments made on composition of olences under section 13 by way of expenses or compensation awarded by a ,of 1898 court, under section 545 of the code of criminal procedure, 1898, out of any flne imposed in any prosecution under this act 20 (2) there shall be paid from out of the fund all sums required for the discharge by the central government of any of its liabilities under the scheme, or for payments by the central government under iection 10, or for the payment by the central government of the remuneration and expenses of agents employed for the purposes of the 25 scheme (3) u at any time when a payment is to be made out of the fudd the sum standiii&' to the credit of the fund is less than the sum required for the making of that payment, an amount equal to the deftciency ihall, after due appropriation made by parliament by law, be 30 paid into the fund as an advance out of the consolidated fund of india (4) u at any time the amount standing to the credit of the fund exceeds the !tum which, in the opinion of the central government, is likely to be required for the making of payments out of the fund, 3' the excess shall be disposed of in such madder as the ceatral government may think flt (5) the central government shall prepare in such form and manner as may be specified in the scheme and shall publish eit';)er annually or at such shorter intervals as may be specified therein, "old account of all sums received into and paid out of thefund  chapter iii miscellaneouspower oj 8 (1) any person authorised in this behalf by the central gov-central got f h ft'   h th ·t  1 "ernmcnt to ernmen may, or t e purpose 0 ascer alnmg weer or no -ue r:tain inowner or occupier of ~y property required to be insured under this s rmauon act has taken out a policy of insurance as required by this act in respect of such property, or for the purpose of investigating the insurable value of any property insured, or required to be, insured, or ilroposed for insurance under this act, or for the purpose of i!stimating the damage suffered by any property insured under this act,- 10 (a, require the owner or occupier of the property, or any person carrying on in india the business of fire insurance in respect of the property, to submit to him such accounts, books or other documents or to furnish to him such information as he may reasonably think necessary, or i; (b) at any reasonable time, enter any premises comprising or containing the property, inspect such premises or property, and require any person found on such premises who is for the time being in charge thereof, or in control thereof, or whom he believes to be in possession of information relevant to his in- 20 vestigation, to produce to him and allow him to examine such accounts, books or other documents as he may think necessary, or to furnish to him such other information as he may reasonably think necessary (2) ~oever wilfully obstructs any person in the exercise of his zs powers under this section or fails without reasonable excuse to comply with any demand made thereunder shall, in respect of each occasion on which any such obstruction or failure takes place, be punishable with fine which may extend to one thousand rupees (3) whoever, in i>urporting to comply with his obligations under 30 this section, knowingly or recklessly makes a statement false in a material particular shall be punishable with fine which may extend to one thousand rupees (4) where in any proceedings in respect of a contravention of section 5 in relation to any factory, it is proved, in relation to that 35 factory-- (a) that a demand for the production of a policy of insurance issued in accordance with the scheme insuring the owner or occupier of the factory was duly made under this mc~ ip14 wu not ecxnpued with, and 40 (b) that the person making the demand was not satisfied that there was such a policy in existence, it shall be pres,umed, except in so far as the contrary is proved, that the said section 5 was being contravened in relation to that factory 5 at the time when the demand was made and continued to be contravened in relation to that factory at all times thereafter 9 if any person, for th~ purpose of obtaining for himself or any punihment other person any payment in respect of any damage due to the tse~:~­action of the enemy or under a policy issued in pursuance of the matlon 10 scheme-:  1 (a) furnishes any information which he knows to be false in a material particular, or recklessly furnishes any information which is false in a material particular, or (b) with intent to deceive, produces, furnishes, sends or is otherwise makes use of any book, account or other document which is false in a material particular, or-(c) with intent to deceive, withholds any material information, , he shall be punishable with fine which may extend to five thousand 20 rupees or with imprisonment for a term not exceeding three months or with both j 100 where the central government require~ the owner of a fac- payment totory to remove the factory and to reconstruct it in another locality, ward~f't °df rctnoy  an the centntl government shall make to such owner out of the fund reconstrrc-2s sllch payments, in addition to any sum payable under the policy ~~~~ of insurance, as it considers sufficient to defray the cost of the removal and, if necessary, the replacement of any part of the property in respect of which no compensation is payable 11 (1) without prejudice to the provis,ions of sub-section (4) rec:ovefj of 30:- of section 5, where any person has failed to insure as, or to the full =:d~ amount, required by this act, and has thereby evaded the payment by way of premium of any money which he would have had to pay but for such failure, an officer authorised in this behalf by the central government may determine the amount payment of which 3s has been so evaded and the amount so determined shall be payable by such person and shall be recoverable from him as provided in sub-section (2) - (2) any instalment of premium due on a policy of insurance issued under the scheme, and any amount deotermined as payable 2278 (b) ls-2 ' i ·under bub-section (1), shall be recoverable as an arrear of land r venue and shall be a first charge on the property in respect of which the default was made (3) a person against whom a determiillfltion is made under sub--section (1) may, within the period specified in the scheme, appeal s against such determination to the central government whose decision thereon shall be final limitation on prosecutions 12 no prosecution for any offence punishable under this act shall be instituted against any person except by, or with the consent of, the central government or an authority authorised in this be- 10 half by the central government composition 13 any offence punishable under sub-section (4) of section 5 of oft'cnc::es may, either before or after the institution of the prosecution, be compounded by the central government, or by any authority authorised in this behalf by the central government on payment is for credit to the fund of such sum as the central government or such authority, as the case may be, thinks fit bar~flclal 14 (1) no suit, prosecution or other legel proceedings shall lie proc:ccdins against any person for anything which is in good faith done or intended to be done under this act 20 (2) no suit !thall be maintainable in any civil court against the central government, or a person acting as its agent under section 4, for the refund of any money paid or purporting to have been paid as premium on a policy of insurance taken out or purporting to have been taken out under this act 25 power to czempt tac:-toria 15 (1) the central government may, by notification in the oftlcial gazette, exempt any class or description of factories from the provisions of this act requiring such factories to be insur-i ed or to continue to be insured under this act; but such exemption shall not prejudice the infliction of any penalty or the accrual of 30 any liability incurred before the dae on which the exemption takes effect i: ' - (2) ii:' granting any exemption under this section the central government may direct that the exemption shall take effect or be deemed to have taken effect on a specified date after or before the 35 date of the notification 16 where any factory has been insured by any owner or occupier refund of thereof for any period, and before that period has elapsed the prem!ums in factory or the factory of that description has ceased, by virtue of certam cales a notification under sub-section (1) of section 15 to be insurable s· under this act, the person who has insured the factory shall be entitled to a proportionate refund of the premium 17 (1) the central government may, by notification in the pee ower of om  i g d i h h  " ntta! gocia azette ec are t at t e provisions of this act and of the vernment to scheme made thereunder shall apply to the insuring against emer- cxa tend dthc - ct~ 10 gency nsks of-scheme to - (a) the plant and machinery, whether above or below ground, undertatmp 35 of 19,3 appertaining to mines as defined in the mines act, 1952, buildings appertaining to mines and within a radius of two miles from the mine excavation and in relation to such plant, rnachi-15 nery and buildings, such mgterials above ground as would, if the mine were a factory, be included in the term "property insurable under this act"; (b) derricks, drills and rigs and group gathering stations and storage tank of an oil mine, plant and machinery required 20 for pumping, refining or processing any mineral oil, and pipe lines; (c) the whole or a specified part of the distribution systems of gas supply undertakings generally, or of specified gas supply undertakings; 25 (d) the whole or a specified part of the distribution and transmission systems, sub-stations, switch houses and transformer houses of electric supply undertakings generally, or of specified electric supply undertakings; (e) the whole or a specified part of the sluice houses, valve 30 houses, water-pipe lines, penstocks and any other plant and machinery pertaining to the intake of hydraulic power of hydroelectric supply undertakings generally, or of specified hydroelectric supply undertakings; (f) standing tea crops in any garden belonging to the owner 35 of any factory; as they apply to property insurable under this act which appertains to a factory (2) in interpreting this act as applied by notification under clause (a) of sub-section (1) to mines, references to the owner of a 40 factory shall be read as references to the owner or agent of a mine 35 of 19s2 as defined in the mines act, 1952, and references to the occupier of a factory shall be read as references to the agent of a mine as defined in that act; a~~ in interpreting this act as applied by notj-~r!"""', fication under any of the clauses of sub-section (1), "property insurable under this act" shall be interpreted as meaning all property to which the scheme is by the said notification declared to apply power of 18 (1) the central government may, by notification in the central go- official gazette, direct that the pr::>visions of this act and of the 5 :=~~e to scheme made thereunder shall extend and shall so far as they are ap kt to inland plicable, apply in the same manner as they apply to the insurance of yellel property insurable under this act in relation to a factory, to the in~uranee against emergency risks of inland vessels (including the hull, machinery and fittings thereof, fuel carried therein, and stores 10 carried therein fql' the use of the crew), being the property of any trading corporation or of any body of port trustees or commissioners or of any other person specified in this behalf by the central government, where such vessels, fuel and stores are not for the time being plant or materials insurable in relation to a factory under this 15 act and the scheme thereunder, or goods insurable under the emergency risks (goods) insurance scheme made under the emergency risks (goods) insurance act, 1962 (2) in this section, unless the context otherwise requires,-(a) "inland vessel" means a vessel not ordinarily plying out- ao side the limits of the territorial waters surrounding india; (b) "vessel" means a vessel the value of which including the hull, machinery and fittings but excluding cargo, fuel and stores carried for the use of the crew, as ascertained for the purpose of insurance under the scheme, exceeds two thousand and five 25 hundred rupees, propelled wholly or in part by steam, electrical or mechanical power, or adapted for towing by a vessel so propelled, and includes any such vessel while used as a place of habitation or for storage of goods but does not include a vessel of the type commonly called country craft 30 (3) in the application of this act and of the scheme m,ade thereunder to the insurance of inland vessels---(a) the obligation imposed by sub-section (1) of section 5 on the owner of a factory shall, iii the case of a trading corporation or body of port trustees or commissioners or any other person 35 whose inland vessels become insurable under this act and the scheme thereunder, be an obli~ation imposed on the trading corporation, body of port trustees or commissioners or such other person to take out by such date as may be specified in this behalf by the central government by a notification in the 40 official gazette, a policy of insurance against emergency risks issued in accordance with the scheme whereby it is insured in rfspect of all inland vessels (including fuel carried by them and mores carried by them for the use of the cre'w) owned by it or him, as the case may be, for a sum not less than the insurabl~ 45 va1ue of such vessels, fuel and $tqr~s; and ~his obli~ation sl}tu to the case of a trading corparation incorporated outside india rest upon the manager of the principal place of business in india of the corporation; (b) the prohibition contained in sub-section (1) of section 5 6 of this act shall be deemed to include a prohibition of carrying on business of insuring inland vessels in india against emergency risks for insurance against which provision is made under the scheme; 10 (c) nothing in this act shall prevent the fixing of a rate of premium under or the prescription foc the time being of any period or periods for policies issued in connection with the insurance of inland vessels different from any rate fixed under or power 10 any periods prescribed for policies issued in connection with the rccldolti yo 41-- u ea insurance of property appertaining to a factory 15 19 if any difficulty arises in giving effect to the provisions of thil act, and in particular, if any doubt arises as to whether a person is insurable in respect of any property insurable under this act, the central government may, by order, make such directions, not inconsistent with the provisions of this act, as appear to it to ·be necessary 20 or expedient for the removal of the doubt or difficulty; and the decision of the central government, in such cases, shall be final  statement of objects and reasonsin view of the present emergency, it is considered desirable tliat provision should be made for the insurance of factories and inland vessels against the risk of loss or damage as a result of enemy action as the degree of risk which may be involved is necessarily uncertain, it will not be possible for the established insurers to cover it in the normal course, and the· scheme will have to be formulated, brought into force, and operated on behalf of the central government 2 the bill seeks to provide for a scheme of insurance based on premium rates which can be varied within certain limits with reference to the actual natupe or extent of the risk as it may exist from time to time the various provisions are explained in detail in the notes on clauses which are attached to the bill new delhi; morarji desai the 29th november, 1962  - czauae 1 in effect provides that the bill, when it is passed into law, shall come into force immediately in all the states and territories of india including jllmmu and kashmir the provisions of the act will continue to be in force throughout the period of the present emergency and for a reasonable period thereafter clause 2 defines the words and expressions used in the bill the definition of "enemy" is bas~d on the corresponding definition in the defence of india bill, 1962 the definition of "emergency risks" is based on the provisions of the previous law as it was in force during the second world war; it is comprehensive, and includes any risk of loss or damage through explosions or through the adoption of 'scorched earth' or 'denial' measures property insurable under the act will include factory buildings, plant and machinery, and materials used in or by the factory, but will exclude any goods which are insurable under the emergency risks (goods) insurance scheme clause 3 provides for a scheme of insurance of factories within the scope of the provisions of the bill to be prepared and brought into force by notification at an appropriate stage by the central government it is clarified for the avoidance of any doubt that persons interested in any property insurable under the act may insure that property on their initiative, in lieu of the persons who as the owners for the purposes of the scheme may be bound or compelled to insure the property in the normal course the central government's liability as the insurer will be limited in each case to eighty per cent of the insurable value of the property and may be discharged either by payment in cash or by reimbursement of the cost of restoring the factory or other insured property to the condition in which it was before the damage in the event of a factory being reconstructed, the central government may provide, as a condition of such restriction, that the factory shall be removed to some other locality 'i'he policies of insurance will be issued for periods, the duration of which will be determined by the central government, but the periods of validity of the policies may be extended from tlme to time the premiums will be charged at a variable rate which will be determined from time to time by the central government, after taking into account the actual degree of risk which may be involved factories in the course of construction will be eiigible for pr()o teetion under the scheme, in the same manner and to the same extent, as completed factories which are working normally clause , provides for the appointment of an agent to administer the scheme on behalf of the central government clause 5 provides that when a scheme of insurance is notified and brought into force, the owner of a factory, of where the owner is not himself the occupier, the occ1lpier acting on his behalf, will be compelled to insure the factory and other properties to the extent that they are insurable under the scheme in the event of a change in the ownership of a factory during the currency of a policy of insurance issued in relation to it, the polky along with the rights and liabilities there under, will be transferred to the new owner clause 6 prohibits private insurers from competing with the central government in regard to the coverage of the abnormal emergency risks for which provision is made in the bill clause 7 provides for the establishment of an emergency risks (factories) insurance fund the fund is intended to be selfsufficient, but provision is being made for the central government to advance to the fund, if it is temporarily in deficit, any amount which may be needed for meeting the expenditure which may be chargeable to the fund, if there is ultimately a surplus in the fund after providing for all the obligations to the policy-holders, appropriate provision in regard to the utilisation of the surplus will be made by the central government clause, 8 and 9-clause 8 provides for the grant of power to the central government to obtain information or to carry out such inspections as may be necessary and clause 9 provides for penalties for furnishing any false information clause 10 provides that if the central government requires any factory to be removed to any other locality, the cost of such removal will also be paid out of the emergency risks (factories) insurance fund clause 11 provides for the recovery of any amount due to the central government which may remain outstanding, either because the ,ayment has been evaded or because it has been in arrears clause, 12 to 14 contain the usual provisions in regard to the limitation of prosecutions, the composition of offences and bar of legal proceedings in respect of action taken in good faith under the relevant provisions of the bid clauses 15 and 16~lause 15 provides for the grant of power to the central government to exempt factories belonging to any particular class, if it is considered necessary or expedient to do so, while clause 16 provides for a proportionate refund of the premiums in such cases clauses 17 and 18 provide for the extension of the scheme of insurance so as to cover the plant and machinery and other similar equipment of mines, including oil mines, and the properties of gas and electricity supply undertakings, and inland vessels clause 19 provides for· the grant of power to the central government to remove cwrculties, if any clause 7 of the bill provides that an emergency risks (factories) insurance fund will be established and that an amount not exceeding the amount of the premiums collected under the scheme of insurance will be paid into that fund after due appropriation by law the degree of risk as a result of enemy action is necessarily uncertain and a reasonably accurate estimate of the value of the property insurable in accordance with the provisions of the bill is not also available it is not possible, therefore, to anticipate exactly at this stage the rate at which premiums may have to be fixed or the amounts receivable on account of the emergency risks (factories) insurance fund it is envisaged, however, that the rate of premium may not exceed four per cent in two years or two per cent per annum payable in suitable quarterly imtalments it is also expected that the scheme may not involve any net burden on the consolidated fund of india, over and above the obligation to transfer to the emergency risks (factories) insurance fund from out of the consolidated fund the premiums received under the scheme the cost of administering the scheme is expected to amount to about rs l' 5 lakhs on account of the special ofbcer's arganisation  sub-clause (3) of clause (1) provides that the central government may by notification in the official gazette declare that the period of the emergency for the purposes of the emergency risks (factories) insurance scheme will be extended until some suitable date after the expiry of the emergency which has been proclaimed by the president under article 352 of the constitution the delegation of power to the central government for this purpose is unavoidable 2 there is no other provision in the bill which involves any delegation of powers which is not of a routine or normal character a bill to make provisions for the insurance of certain property in india against damage by enemy action during the period of emergency the president has, in pursuance of clauses (i) and (3) of article 117 of the constitution of india, recommended to lok sabha the introduction and consideration of the bill m n kaul, secretary, (shrt morarji desai, minister of finance) 