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TypeBare Act JurisdictionCentral Government

Insurance Act, 1938 Section 42E

Commission, brokerage or fee payable to intermediary or insurance intermediary. 394

~4 min read
https://sooperkanoon.com/act/457831

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About this section

Insurance Act, 1938 Section 42E is part of Insurance Act, 1938 - Commission, brokerage or fee payable to intermediary or insurance intermediary. 394. Read the section text below and explore Indian court judgments that cite it.

Research copy - verify against official government publications before filing or court use.

Section Text

Section 2 and Schedule (1-11-1956). [India].

(3) Within sixty days of the commencement of the Insurance (Amendment) Act. 1950, every chief agent shall file with the insurer concerned a full list of the insurance agents employed by him, indicating the terms of the contract between the chief agent and each of such insurance agents and the business secured by each of such agents, and if any chief agent fails to file such a list within the period specified, any commission payable to such chief agent on premiums received from the date of the expiry of the said period of sixty days until the date of the filing of the said list shall, notwithstanding anything in any contract to the contrary, cease to be so payable.

(4) Every contract between an insurer carrying on life insurance business and a special agent, or between a chief agent of such insurer and a special agent, shall be in writing and the terms contained in Part C of the Sixth Schedule shall be deemed to be incorporated in, and form part of, every such contract :

Provided that the Controller may, in the case of a contract between a co-operative life insurance society as defined in clause (b) of sub-section (1) of Section 95and a co-operative society registered under the Indian Co-operative Societies Act, 1912, or under any other law for the time being in force and acting as a special agent, alter, to such extent as he thinks fit, all or any of the said terms.

(5) A certified copy of every contract as is referred to in sub-section (1) or sub-section (4) shall be furnished by the insurer or the chief agent to the Controller within thirty days of his entering into such contract, and intimation of any change in any such contract shall be furnished by the insurer or the chief agent with full particulars thereof to the Controller within thirty days of the making of any such change.

(6) No such contract as is referred to in sub-section (1) or sub-section (4) shall be entered into or renewed for a period exceeding ten years at any one time, and, notwithstanding the terms of any contract to the contrary, no option to renew any such contract given to any of the parties shall be enforceable without the consent of the other.

(7) Every contract between an insurer and a person acting on behalf of such insurer who, before the commencement of the Insurance (Amendment) Act, 1950, has been employing insurance agents for the purpose of life insurance business; which is subsisting on such commencement, shall terminate after the expiration often years from such commencement, if it does not terminate earlier :

Provided that every such contract shall be modified by the parties before the 1st day of January, 1951, to bring it into conformity with this Act, and any such modification shall -

(i) as respects remuneration whether in respect of business already procured or in respect of business to be procured thereafter, be such as may be mutually agreed upon between the parties, subject, in the case of remuneration payable on business procured before such commencement, to a maximum of an overriding commission of two and a half per cent, plus a further commission not exceeding three and three-quarters per cent. on premiums in respect of which no commission is payable to any insurance agent;

(ii) be deemed to include all the terms specified in Part B or Part C of the Sixth Schedule, as the case may be :

Provided further that, in the event of any dispute as to the terms of any fresh contract, the matter shall be referred to arbitration.

(8) Any such contract as is referred to in sub-section (7) which was subsisting on the 1st day of January, 1949, but has terminated or has been terminated before the commencement of the Insurance (Amendment) Act, 1950, shall be subject to the maximum limits specified in clause (i) of the Proviso to sub-section (7) as respects remuneration, if any, payable on business procured before the termination of the contract.

(9) Nothing in this section shall be deemed to prevent any special agent from receiving any renewal commission on policies effected through him as an insurance agent at any time before his appointment as such special agent.

(10) If any dispute arises as to whether a person is or was a chief agent or a special agent for the purposes of this Act, the matter shall be referred to the Controller whose decision shall be final.

(11) Every insurer shall maintain a register in which the name and address of every chief agent appointed by him, the date on which the appointment was made and the date, if any, on which the appointment ceased shall be entered, and a separate register in which similar particulars relating to every special agent shall be entered, and every chief agent shall maintain a register in which similar particulars relating to every special agent appointed by him shall be entered.] Section 42C1 Section 42C [* * * *] Section 42D Section 42E [* * * *] Section 42E Commission, brokerage or fee payable to intermediary or insurance intermediary. 394

Frequently asked questions

What does Insurance Act, 1938 Section 42E provide?

Section Section 42E of the Insurance Act, 1938 (Commission, brokerage or fee payable to intermediary or insurance intermediary. 394) is reproduced on this page as part of the Insurance Act, 1938. Lawyers and researchers use it to read the statutory wording before checking how courts have applied this section in reported judgments.

How do I find judgments on Insurance Act, 1938 Section 42E?

Open “Find citing judgments” on this page to search Supreme Court, High Court, and tribunal decisions that reference Insurance Act, 1938 Section 42E. Advanced act search can narrow results by court, year, or additional act filters.

Is the section text on SooperKanoon official?

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