(1) A person shall be eligible for election as a director of aninsurance company under Sec. 48 of the Act, if he holds one or morepolicies of life insurance issued by the company and satisfies theprovisions of the said section and both the following requirements,namely:
(a) the policies shall insure either a total sum, including anybonuses that may have attached to them before the date of election,of not less than Rs.
3,000, where the company has at that date beencarrying on life insurance business for not less than five years, orof not less than Rs. 1,000 in other cases, or annuities on human lifeof a total amount of not less than Rs. 250 per annum without regardto the age of the company, and
(b) where the company has been carrying on life insurance businessfor more than two years, all the policies held in compliance with Cl.(a) shall have been in force for not less than one, two or threeyears, according as the company has at the date of election beencarrying on life insurance business for not more than five years, formore than five but no more than eight years, or for more than eightyears;
Provided that the Central Government may, in respect of anyinsurer after taking into account the maximum sum assured permissibleaccording to constitution or rules and regulations and otherconditions, modify the above qualifications by fixing (i) for the suminsured or annuity, an amount lower than the corresponding amountmentioned in Cl. (a) or Cl. (ii) for the period, a period shorterthan the one mentioned in Cl. (b) or both.
(2) If at any date after election as a director, a person ceasesto be a person holding one or more policies of life insurancesatisfying the provisions of Sec. 48 and both the requirementsspecified in sub-rule (1) he shall forthwith cease to be an electedof the company.