 the life insurance corporation (amendment) bill, i9i7(as introduced in lok sabha)  the llfe,insurance corporation (amendment) bill,1957 (as introduced in lok sabra) a billto amend the life insurance corporation act, 1956 b it enacted by parliament in the eighth year of the republic fjl lqdi u follows:-1 this act may be called the life insurance corporation shan title '~ent) act, 1957 , z~ in section 11 of the life insurance corporation act, 1956 amendment (hereinafter referred to as the principal act), for sub-section (2), of section ii ab following sub1iection shall be substituted, namely:- e- (2) where the central government is satisfied that for :the purpose of securing uniformity in the scales of remuneration and the other terms and conditions of service applicable to employees of insurers whose controlled business has been transferred to, and vested in, the corporation, it is necessary 10 to do, or that, in the interests of the corporation and its policy-holders, a reduction in the remuneration payable, or a revision of the other terms and conditions of service applicable, to employees or any class of them is called for, the central government may, from time to time, notwithstanding anything contained in sub-section (1), or in the industrial disputes act, 1947, or in any other law for the time being in force, or in any ward, settlement or agreement for the time being in force, alter (whether by way of reduction or otherwise) the remuneration and the other terms and conditions of service to such extent and in such manner as it thinks fit; and if the alteration is not acceptable~ to any employee, the corporation may terminate his employment by giving him compensation equivalent to three months' remuneration unless the contract of service with such employee provides for a shorter notice of termination s explanation-the compensation payable to an employee under this sub-section shall be in addition to, and shall not affect, any pension, gratuity, provident fund money or any other benefit to which the employee may be entitled under his contract of service" 10 amendment 3 in section 43 of the principal act, after sub-section (2), the of section 43· following sub-section shall be inserted, namely:-"(2a) section 42 of the insurance act shall have effect in relation to the issue to any individual of a licence to act as an agent for the purpose of soliciting or procuring life insurance is business for the corporation as if the reference to an officer authorised by the controller in this behalf in sub-section (1) thereof included a reference to an officer of the corporation authorised by the controller in this behalf" , 4 for section 45 of the principal act, the following section 20 shall be substituted, namely:-substitution ofne  section for section 45 special provisions regardin~ transfer of controlled business of certain composite insurers "45 notwithstanding anything contained in clause (c) -of section 44, the central government may, by notification in the official gazette, direct that on and with effect from such date as may be specified in the notification the assets and liabilitiea 25 appertaining to the controlled business of a composite insurer' in respect of the management of whose affairs an admiriistrator has been appointed under section 52a of the insurance act shall be transferred to and vested in the corporation, and on the issue of such a notification the provisions of this· act shall, 30 so far as may be, apply in relation to such insurer and to the'"" transfer and vesting of the assets and liabilities of his controlled business in the corporation as they apply in relation to all other insurers and to the transfer and vesting of the assets end uablli-, ties of their controlled bu,siness in the corporation, subject to3s" the modification that references in this act to the appointed day shall be construed as references to the day speoified in th~ notification"  (b) of sub- amendment be deemed of acction 49· 5 in section 49 of the princip~l act, after clause section (2), the following clause shall be, and shall always to have been, inserted, namely:-"(bb) the terms and conditions of service of persons who have become employees of the corporation under sub-section (1) of section 11;"   - 8 any order altering the remuneration and the other terms and validation of conditions of service of the employees referred to in sub-section (2) 0br~ers passed -   elorc comof section 11 of the prmclpal act made or purportmg to have been mencemcnt 10 made under that sub-section before the commencement of this act ?f act altermg remuneby the central government for any of the purposes specified in ration, etc that bub-section as amended by this act, shall, notwithstanding anything contained in any judgment, decree or order of any court, be deemed to have been made under that sub-section as amended by 15 this act as if this act were in force on the date on and from which the order was intended to take effect, and the order shall continue in force and have effect accordingly, unless and until superseded by ,anything done or action taken under the principal act 7 the life insurance corporation (amendment) 2e 1967, is hereby repealed ordinance, repeal of ordinance 3 of 1957  -  statement of objects and reasonsafter the passing of the life insurance corporation aet, 19m, it became necessary for the corporation to examine the widely varying terms and conditions of service of employees whose services had been statutorily transferred to it with a view to ensuring uniformitt in the pay scales and other terms and conditions of service appucable to them an order altering the terms and condi~ions ot lernce in this behalf was passed by the corporation under section 11(1) which was later approved by the central government and issued ia the form of an order under section 11 (2) in a recent decision, the-bom~ay high court held that the power given to the central goy-ernment under section 11 (2) was confined to altering the remunera tion only and the order which dealt not only with the remuneration but also with other terms and conditions of service was, therefore, bad in law to prevent confusion in the working of the corporation an ordinance had to be promulgated immediately amending section 11 (2) and validating the order made by government the present bill seeks to replace the ordinance 2 advantage has been taken of this opportunity to make the following further amendments:-- (i) section 42 of the insurance act, 1938, empowers the controller or any officer authorised by him in this behalf to issue licences to insurance agents it is felt that officers of the corporation should also be enabled to issue licences on behalf of the controller (ii) a doubt has arisen whether in respect of a transfer under section 45 of the controlled business of a composite insurer now vested in an administrator the provisions of this act apply a redraft of section 45 seeks to make the position clear (iii) section 49 (2) is sought to be amended to make it clear that the power conferred by section 49 (2) (b) is 8ya1labje with respect to all employees whether recruited by the eorpo ration or taken over on its incorporation i , 'i t t krishnama,chabi new delhi; the 14th may, 1957  "- ,', ';':''' '-,  extracts prom the life insurance ac:r, 1956 no 31 of 195611 (1) - transfer of serv'ce of existing employees 0 inamers to (2) notwithstanding anything contained in sub-section (1) or the c~rin any contract of service, the central government may, for the poratlon purpose of rationalising the pay scales of employees of insurers whose controlled business has been transferred to and vested in it or for the purpose of reducing the remuneration payable to employees in cases where in the interest of the corporation and its policy-holders a reduction is called for, alter the terms of service of the employees as to their remuneration in such manner as it thinks fit; and if the alteration is not acceptable to any employee the corporation may terminate his employment on giving him compensation equivalent to three months' remuneration unless the contract of service with such employee provides for a shorter notice of termination ezplanation-the compensation payable to an employee under this sub-section shall be in addition to and shall not affect any pension, gratuity, provident fund money or any other benefit to which the employee may be entitled under his contract of service  - - - - 45 notwithstanding anything contained in clause (c) of section special 44, the administrator appointed to manage the affairs of a composite ~:::~n:a' insurer under the insurance act shall, as soon as may be practicable certain after the commencement of this act, take steps in the prescribed f~~~::lte manner,-(a) to transfer the assets and liabilities appertaining to the controlled business of the insurer, to the corporation; and (b) to vest the management of the affairs of the insurer in respect of any other kind of business in the person entitled thereto - - - - - - - - (2) in particular, and without prejudice to the aenerality of the foregoing power, such regulations may provide for-(a)      -                        -                                          -                                                             -      (b) the method of recruitment of employ", and -aents of the corporation and the termll and condition of service of iuch employees or aients;           -                                 -                                                    -                                                                       -  - a bill to amend the life insurance corporation act, 1956 (shri t t krishnamachari, minister of finance) 