(1) Where an existing insurer has established a provident, superannuation, welfare or any other fund for the benefit of his employees and constituted a trust in respect thereof (hereafter in this section referred to as an existing trust), the moneys standing to the credit of such fund on the appointed day, together with any other assets belonging to such fund, shall stand transferred to and vested in the Indian Insurance Company on the appointed day free from any such trust.
(2) Where all the employees of the Life Insurance Corporation or any other existing insurer do not become employees of an Indian Insurance Company, the monies and other assets belonging to any such fund as is referred to in sub-section (1), shall be apportioned between the trustees of the fund and the Indian Insurance Company in the prescribed manner; and in case of any dispute about such apportionment the decision of the Central Government thereon shall be final.
(3) Where the undertaking of an existing insurer has vested in more than one Indian Insurance Company, the Central Government may, by order, provide for the apportionment among such Indian Insurance Companies of monies and other assets belonging to any existing trust relating to that undertaking in such manner as in its opinion may be appropriate.
(4) The Indian Insurance Company shall as soon as may be after the appointed day constitute in respect of the moneys and other assets which are transferred to and vested in it under this section one or more trusts having objects as similar to the objects of the existing trusts as in the circumstances may be practicable.
(5) Where all the moneys and other assets belonging to an existing trust are transferred to and vested in an Indian Insurance Company under this section, the trustees of such trust shall, as from the appointed day, stand discharged from the trust, except as respects things done or omitted to be done before the appointed day.