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Section 3: In section 2 of the Insurance Act,— (/) for clauses (J) and (7/1), the following clauses shall be substituted, namely

Insurance Laws (Amendment) Ordinance 2014Central Ordinance · No. 4 of 1938

' ( / ) "actuary" means an actuary as defined in clause {a) of sub-section (/) of section 2 of the Actuaries Act.

Amendment of section 2.

SEC. 11 THE GAZETTE QF INDIA EXTRAORDINARY 3 35 ot 2006. 2006;

(1A) "Authority" means the Insurance Regulatory and Development Authority of India established under sub­ section (/) of section 3 of the Insurance Regulatory and 41 of 1999. Development Authority Act, 1999;";

(//') clause (5A) shall be omitted;

(Hi) after clause (6B), the following clause shall be inserted, namely:— '(<5Q "health insurance business" means the effecting of contracts which provide for sickness benefits or medical, surgical or hospital expense benefits, whether in­ patient or out-patient travel cover and personal accident cover;';

(z'v) for clause (7A), the following clause shall be substituted, namely:— '{7A) "Indian insurance company" means any insurer, being a company which is limited by shares, and,— 18 of 2013.

(a) which is formed and registered under the Companies Act, 2013 as a public company or is converted into such a company within one year of the commencement of the Insurance Laws (Amendment) Ordinance, 2014;

(b) in which the aggregate holdings of equity shares by foreign investors, including portfolio investors, do not exceed forty-nine per cent, of the paid up equity capital of such Indian insurance company, which is Indian owned and controlled, in such manner as may be prescribed.

Explanation.—For the purposes of this sub-clause, the expression "control" shall include the right to appoint a majority of the directors or to control the management or policy decisions including by virtue of their shareholding or management rights or shareholders agreements or voting agreements.";

(c) whose sole purpose is to carry on life insurance business or general insurance business or re-insurance business or health insurance business;

4 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—

(v) clause (8) shall be omitted;

(vi) in clause (8A),— (I) for sub-clause (b), the following sub-clause shall be substituted, namely:— "(6) having a minimum paid-up capital of rupees one hundred crores in case of life insurance* business, general insurance business and health insurance business;";

(II) in sub-clause (d), after the words "general insurance business", the words "or health insurance business" shall be inserted;

(vii) for clause (9), the following clause shall be substituted, namely:— '(9) "insurer" means —

(a) an Indian Insurance Company, or

(b) a statutory body established by an Act of Parliament to carry on insurance business, or

(c) an insurance co-operative society, or

(d) a foreign company engaged in re-insurance business through a branch established in India.

Explanation.— For the purposes of this sub-clause, the expression "foreign company" shall mean a company or body established or incorporated under a law of any country outside India and includes Lloyd's established under the Lloyd's Act, 1871 (United Kingdom) or any of its Members;';

(viii) in clause (10), the words and figures "licensed under section 42" shall be omitted;

(ix) in clause (11), in sub-clause (c), for the word^ "annuities payable out of any fund", the words "benefit payable out of any fund" shall be substituted;

(x) clauses (12), (13) and (15) shall be omitted;

SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 5 7 of 1913.

18of2013.

(xi) in clause (16), for the words, brackets, figures and letter "clauses (13) and (13A) of section 2 of the Indian Companies Act, 1913", the words, brackets and figures "clause (68) and clause (72) of section 2 of the Companies Act, 2013'* shall be substituted;

(xii) after clause (16), the following clauses shall be inserted, namely:— \16A) "regulations" means the regulations framed by the Insurance Regulatory and Development Authority of 41 of 1999. India established under the Insurance Regulatory and Development Authority Act, 1999;

(16B) "re-insurance" means the insurance of part of one insurer's risk by another insurer who accepts the risk for a mutually acceptable premium;

(16C) "Securities Appellate Tribunal" means the 15 of 1992. Securities Appellate Tribunal established under section 15K of the Securities and Exchange Board of India Act, 1992;';

(xiii) clause (7 7) shall be omitted.

Where this provision sits

ActInsurance Laws (Amendment) Ordinance 2014
Section3
Marginal noteIn section 2 of the Insurance Act,— (/) for clauses (J) and (7/1), the following clauses shall be substituted, namely
JurisdictionCentral
StatusIn force as published by the source

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