(l) It shall be clearly indicated -(a) inevery proposal form in the case of life insurance; or (b) in thedocument, if any, forming the basis of the contract in the case ofany other form of insurance, that rebate of premiums shall be allowedonly in accordance with the details given in the prospectus or tableof premium rates or, as the case may be. the relevant document, andthat an offer or acceptance of any other rebate shall be an offenceunder Sec. 41 of the Act. (2) The provisions of sub-rule (2) of rule11 shall apply mutatis mutandis to proposal forms, except that, wherean addendum is attached to a proposal form, it shall also be signedby the person who signs the proposal form.
Committees of the Insurance councils 12 -A. List of insurers.- The Controller shall cause to bepublished in the Gazette of India a list of the members and associatemembers of the life Insurance and General Insurance Councils of theInsurance Association of India once every year in the month ofJanuary.
12 -B. Constituencies of insurers.-(1) Members of the InsuranceAssociation of India who are insurers carrying on life insurancebusiness and having, a premium income in such business of more thanthree lakhs of rupees in the preceding year shall elect fourindividuals as members of the Executive Committee of the LifeInsurance Council of the Insurance Association of India in thefollowing manner:
(a) one individual by such members as have their head offices inthe Calcutta area;
(b) two individuals by such members as have their head offices inthe Bombay area;
(c) one individual by such members as have their head offices inthe Delhi and Madras areas, the members in each area alternatelyelecting the individual, the first election being held in the Delhiarea.
(2) Members of the Insurance Association of India who are insurerscarrying on life insurance business and having a premium income insuch business of less than three lakhs of rupees in the precedingyear shall elect four individuals as members of the ExecutiveCommittee of the Life Insurance Council of the Insurance Associationof India in the following manner;
(a) one individual by such members as have their head offices inthe Calcutta area;
(b) one individual by such members as have their head offices inthe Bombay-area:
(c) one individual by such members as have their head offices inthe Madras area;
(d) one individual by such members as have their head offices inthe Delhi area;
(3) Members of the Insurance Association of India who are insurerscarrying on general insurance business shall elect individuals asmembers of the Executive Committee of the General Insurance Councilof the Insurance Association of India in the following manner:
(a) one individual authorised to stand as a candidate by a memberhaving his head office in the Calcutta area and whose premium incomein such business in the preceding year exceeding ten lakhs of rupeesand elected to the Committee by such members as have their headoffices in the Calcutta area;
(b) one individual authorised to stand as a candidate by a memberhaving his head office in the Calcutta area and whose premium incomein such business in the preceding year did not exceed ten lakhs ofrupees and elected to the Committee by such members as have theirhead offices in the Calcutta area;
(c) two individuals each of whom is authorised to stand as acandidate by a member having his head office in the Bombay area andwhose premium in such business in the preceding year exceeded fivelakhs of rupees and elected to the Committee by such members as havetheir head offices in the Bombay area;
(d) two individuals each of whom is authorised to stand as acandidate by a member having his head office in the Bombay area andwhose premium in such business in the preceding year did not exceedfive lakhs of rupees and elected to the Committee by such members ashave their head offices in the Bombay area;
(e) one individual elected to the Committee by such member, ashave their head offices in the Madras area;
(f) one individual elected to the Committee by such members ashave their head offices in the Delhi area.
(4) For the purpose of this rule if any dispute arises as to whicharea an insurer belongs, or as to the premium income of an insurer,the Controller shall decide the question and his decision shall befinal.
Explanation. -In this rule.-
(i) "preceding year" means the calendar year precedingthe calendar year in which the election takes place; (ii) "Premiumincome" means the gross direct premium income of the insurerwithout taking into account premium income on re-insurances acceptedor ceded.
12 -C. Duties of Dissolved Executive Committees.- When theExecutive Committee of the Life Insurance Council or of the GeneralInsurance Council is dissolved, the outgoing members thereof whocontinue to hold office until a new Executive Committee isconstituted, shall be entitled to discharge the following duties inthe meantime -
(a) keep and maintain up-to-date a copy of the list of all membersand associate members of the Life Insurance Council or the GeneralInsurance Council, as the case may be;
(b) supervise the work of officers and servants employed by theCommittee;
(c) collect the prescribed fees; and
(d) help the Chairman and the secretary to conduct the necessaryelections to the new Executive Committee, 12 -D. Joint Meetings of Executive Committees.-( 1) When a requestis received by the Central Government from-
(a) the Controller of Insurance, or
(b) six individuals who are members of either or both of theExecutive Committees of the Life Insurance Council and the GeneralInsurance Council, or
(c) thirty insurers, that a joint meeting of the Executive Committees should consider amatter specified in the'request, the Central Government may, on beingsatisfied that the matter is one of common interest to the twoExecutive Committees, direct that a joint meeting of the twoExecutive Committees be convened to consider the matter.
(2) It shall be the duty of the Chairman of the two ExecutiveCommittees to convene, as soon as may be after the issue of thedirection under preceding sub-rule a joint meeting of all the membersof the two Executive Committees at such place and at such time anddate as the two Chairmen may decide.
(3) At such meeting, one of the two Chairmen shall be elected bythe members present to preside and the matter referred to and noother matter shall be considered.
(4) The meeting may be adjourned from time to time to be held notnecessarily at the same place, with the consent of the memberspresent for further consideration of the matter or for considering areport from any sub-committee appointed for the purpose by themembers present, but minutes of each meeting shall be kept and a copythereof shall be furnished to the Controller of Insurance immediatelyafter the meeting.
Election of Directors by policy-holders