Section Text
Section 31B, the words "except an insurance agent or a principal, chief or special agent" shall be substituted by Insurance (Amendment) Act, 2002 (42 of 2002), published in the Gazette of India, Extra., Part 11, Section 1"except an insurance agent or an intermediary or insurance intermediary" or a principal chief or special agent. 356[a] Inserted by the Insurance (Amendment) Act, 1946 (6 of 1946), S. 21 (20-3-1946). [(1A) In this section and section 357[b] Inserted, by the Insurance (Amendment) Act, 1950 (47 of 1950), S. 30 (1-9-1950). [40A], 41 and 43, references to an insurance agent shall be construed as including references to an individual soliciting or procuring insurance business- exclusively in 358[c] Substituted for "a Part B State" by 3 A.L.O., 1956. [the territories which, immediately before the 1st November, 1956, were comprised in a Part B State] notified in this behalf by the Central Government in the Official Gazette and holding a valid licence as an insurance agent under the law of 359[d] Substituted for "that State", by 3 A.L.O., 1956. [that Part B State]].
(2) No insurance agent 360[a] The words "licensed under S. 42" were omitted by Act 11 of 1939, S. 16.[* * *] shall be paid or contract to be paid by way of commission or as remuneration in any form an amount exceeding, in the case of life insurance business, forty per cent of the first year's premium payable on any policy or policies effected through him and five per cent of a renewal premium 361[b] Inserted by the Insurance (Amendment) Act, 1946 (6 of 1946), S. 21 (20-3-1946). [payable on such a policy], or in the case of business of any other class, fifteen per cent of the premium:
Provided that insurers, in respect of life insurance business only, may pay, during the first ten years of their business, to their insurance agents fifty-five per cent of the first year's premium payable on any policy or policies effected through them and six per cent of the renewal premiums 362[b] Inserted by the Insurance (Amendment) Act, 1946 (6 of 1946), S. 21 (20-3-1946). [payable on such policies]: 363[c] Inserted, by the Insurance (Amendment) Act, 1950 (47 of 1950), S. 30 (1-9-1950). [Provided further that nothing in this sub-section shall apply in respect of any policy of life insurance issued after the 31st day of December, 1950,orin respect of any policy of general insurance issued after the commencement of the Insurance (Amendment) Act, 1950]. 364[a] Inserted by Act 6 of 1946, S. 21 (20-3-1946). [(2A) Save as hereinafter provided, 365 In Section 40,sub-section (2A) the words "no insurance agent" shall be substituted by Insurance (Amendment) Act, 2002 (42 of 2002), published in the Gazette of India, Extra., Part 11, Section 1"no insurance agent or intermediary or insurance intermediary" shall be paid or contract to be paid by way of commission or as remuneration in any form any amount in respect of policy not effected through him :
Provided that where a policy of life insurance has lapsed, and it cannot under the terms and conditions applicable to it, be revived without further medical examination of the person whose life was insured thereby, an insurer, after giving by notice in writing to the insurance agent through whom the policy was effected 366[b] Inserted by Act 47 of 1950, S. 30 (1-9-1950). [if such agent continues to be an agent of the insurer] an opportunity to effect the revival of the policy within a time specified in the notice, being not less than one month from the date of the receipt by him of the notice, may pay to another insurance agent who effects the revival of the policy an amount calculated at a rate not exceeding half the rate of commission at which the agent through whom the policy was effected would have been paid had the policy not lapsed, on the sum payable on revival of the policy on account of arrear premiums (excluding any interest on such arrear premiums) and also on the subsequent renewal premiums payable on the policy].
(3) Nothing in this section shall prevent the payment under any contract existing prior to the 27th day of January, 1937, of gratuities or renewal commission to 367[a] Substituted for "an insurance agent" by Act I I of 1939, S. 16. [any person, whether an insurance agent within the meaning of this Act or not], or to his representatives after his decease in respect of insurance business effected through him before the said date. Amendment) Act, 1950 (47 of 1950), S. 31 (1-9-1950).
(1) No person shall pay or contract to pay to an insurance agent, and no insurance agent shall receive or contract to receive by way of commission or remuneration in any form in respect of any policy of life insurance issued in India by an insurer after the 31st day of December, 1950, and effected through an insurance agent, an amount exceeding-
(a) where the policy grants an immediate annuity or a deferred annuity in consideration of a single premium, or where only one premium is payable on the policy, two per cent of that premium.
(b) where the policy grants a deferred annuity in consideration of more than one premium, seven and a half per cent of the first year's premium, and two percent of each renewal premium, payable on the policy and (c) in any other case, thirty-five per cent of the first year's premium, seven and a half per cent of the second and third year's renewal premium, and thereafter five per cent of each renewal premium, payable on the policy:
(2) No person shall pay or contract to pay to a special agent, and no special agent, shall receive or contract to receive, by way of commission or as remuneration in any form, in respect of any policy of life insurance issued in India by an insurer after the 31st day of December, 1950, and effected through a special agent, an amount exceeding-
(a) in a case referred to in clause (a) of sub-section (1), one half per cent of the premium.
(b) in a case referred to in clause (b) of sub-section (1), two per cent of the first year's premium payable on the policy, and (c) in a case referred to in clause (c) of sub-section (1), fifteen per cent of the first year's premium payable on the policy;
(3) No person shall pay or contract to an insurance agent, and no insurance agent shall receive or contract to receive, by way of commission or remuneration in any form in respect of any policy of general insurance issued in India by an insurer after the commencement 369 1st September 1950-See footnote [b] under S. 2C. of 370 Substituted for certain words and former clauses (a) and (b) by the Insurance (Amendment) Act, 1968 (62 of 1968), S.I 8(1 -6-1969). [the Insurance (Amendment) Act, 1968], and effected through an insurance agent, an amount exceeding- 371 Substituted for certain words and former clauses (a) and (b) by the Insurance (Amendment) Act, 1968 (62 of 1968), S.I 8(1 -6-1969). [(a) where the policy relates to fire or marine insurance, five per cent of the premium payable on the policy, and (b) where the policy relates to miscellaneous insurance, ten per cent of the premium payable on the policy].
(4) No person shall pay or contract to pay to a principal agent and no principal agent shall receive or contract to receive by way of commission or remuneration in any form, in respect of any policy of general insurance issued in India by an insurer after the commencement of the Insurance (Amendment) Act, 1950, and effected through a principal agent, an amount exceeding-
(a) in the case referred to in clause (a) of sub-section (3), twenty per cent, of the premium payable on the policy; and (b) in the case referred to in clause (b) of that sub-section, fifteen per cent of the policy, less any commission payable to any insurance agent in respect of the said policy :
(5) Without prejudice to the provisions of