(1) Every insurer shall maintain at theprincipal place of business of the insurer in India the items ofinformation specified in sub-rules (2) and (3):
Provided that where it is not convenient or practicable tomaintain any item of information in full detail at such principaloffice it may be maintained at the branches or other offices in suchway, however, that each such branch or office maintains the relevantpart of the information application to its working:
Provided further that an insurer carrying on solely re-insurancebusiness shall be deemed to have complied with the provisions ofsub-rules (2) and
(3) if the information required to be maintainedunder those sub-rules is readily available from the records of suchinsurer.
(2) The following items of information shall be maintained inrespect of each class or sub-class of insurance business, namely:
(i) a record of cover-notes issued specifying the identificationnumber, name of party, dates of commencement and where applicableexpiry of risk, type of cover granted or cross-reference to therelevant policy and the amount of premium or other money received:
Provided that if duplicate copies of cover-notes are maintained inserial order, the requirement of the provision shall be deemed tohave been complied with, -
(ii) a record of policies, which should be serially numberedlisting all policies issued, entered in chronological order, statingthe number of policy, dates of commencement and expiry of risk, nameof the insured, premium received, cross-reference to the relevantBank Guarantee or deposit and the nature of risk granted,cross-reference to any cover-note issued prior to the issue of thepolicy and cross - reference to any endorsement passed subsequent tothe issue of the policy:
Provided that a serially filed collection of duplicate copies ofpolicies issued shall be deemed sufficient compliance with therequirement, if they are serially numbered and all the relevantinformation specified in this clause are entered therein;
(iii) a record of premium showing according to chronological orderof receipt of premiums received, date of receipt, the amount, andname of party from whom received and with cross-reference to policynumber or to other document showing the occasion for the payment ofsuch premium: Provided that if this information is readily availableotherwise from the records, a separate record under this head neednot be maintained;
(iv) a record of endorsements mentioning the policy number towhich attached, dates of commencement and expiry of the endorsement,the type of endorsement and the additional premium charged or refundpremium due and cross-reference to the premium register provided thatserially filed duplicate copies of endorsements shall be deemed tocomply with this requirement if they are serially numbered and eachcopy contains information about the policy number of the policy towhich it is attached;
(v) a record of bank guarantees and deposits giving particulars ofthe party, amount and conditions of guarantee or deposit andcross-reference to the relevant policy or policies:
Provided that if this information is readily available otherwisefrom the records, a separate record under this head need not bemaintained.
(vi) a record of claims intimated mentioning name of cliamant,giving reference to policy number, date of intimation of claim,interest covered, nature and cause of the loss or damage, provisionalestimate of loss, amount at which settled, date of settlement ofclaim, recoveries from salvage or otherwise and whether surveyed:
Provided that two separate records, one relating to claimsintimated and the other relating to claims paid, may be maintained ifthere is adequate crossreferencing of information between them andif the information required under this clause is readily availablefrom them taken together.
(3) The following item of information shall be maintained for thebusiness of the insurer as a whole, namely:
(i) a register of agents, giving in respect of each agent, name,address and particulars of agents licence held, date of appointmentand date of termination of appointment, if any:
Provided that a collection of cards or folios shall be deemedsufficient compliance with this requirement if they are filed in asystematic order and contain all the information required under thisclause; (ii) a record of agents giving particulars of businessprocured by each agent, the amount of premium received on suchbusiness and the amount of commission paid thereon; (iii) duplicatecopies of appointment letters issued to the agents, field workers andmembers of the staff and changes therein; (iv) a record of employees,excluding salaries field workers, showing name, date of appointment,present designation, present salary and cross-reference toappointment letter and date of termination, if any; (v) a record offield workers showing name, date of appointment, present designation,and present salary, showing the business expected from and written bythem with cross-reference to appointment letters and date oftermination, if any;
(vi) cash book and disbursement book; (vii) arecord of investments giving separately for immovable property,securities and scrips, loans on mortgages and other loans,particulars of all the investments held showing the changes occurringtherein from time to time; (viii) a record of other assets, such as,deposits, amounts due, sundry debtors, furniture and fixtures,stationery, and cash in hand and with banks: Provided that in respectof cash in hand and with banks the requirements of this clause shallbe deemed to be complied with if the information about the amount ofsuch cash is readily available from the cash book or other records.
(4) every insurer shall obtain and maintain a legally validreceipt for every payment made and shall maintain the receipts fieldin a systematic manner either chronologically or in some otherconvenient order.
(5) Every insurer shall, in respect of any payment made to anemployee or other person on account of travelling expenses, maintaina record showing full details of the journey performed, purpose ofthe journey, details of the fares paid and allowances granted.
(6) Every office of an insurer shall maintain an attendanceregister of clerical and subordinate staff indicating employees whoattend the office each day.
(7) Every office of an insurer issuing any documents used forevidencing of the assumption of risk shall ensure that such documentsare serially numbered, shall maintain a record of the serial numbersof the forms of documents issued to each person, and shall maintain aproper check to verify that all the forms of documents issued areproperly accounted for.
(8) Every insurer shall retain all the documents relating toclaims settled including copies of any survey or loss assessmentreports connected therewith:
(i) in respect of every loss or damage on which a claim of lessthan Rs.
5,000 has been made, for a period of three years:
(ii)in respect of every loss or damage on which a claim of Rs. 5,000 ormore but less than Rs. 20,000 has been made, for a period of fiveyears;
(iii) in respect of every loss or damage on which aclaim of Rs. 20,000 or more but less than rupees one lakh has beenmade, for a period of seven years; and
(iv) in respect of every loss or damage on which a claim of rupeesone lakh or more has been made, for a period of twelve years;
(9) Every insurer shall maintain a record setting out the names ofeach insurance company with which he has entered into any permanentfacultative re-insurance arrangement, and such record shall show theterms on which re-insurance arrangements have been entered into andthe commissions paid or received under each transaction.
(10) Every insurer shall maintain a record setting out particularsof each and every facultative re-insurance ceded or accepted and suchrecord shall show the name of each insurer with whom the transactionhas been entered into.
(11) Every insurer shall maintain a record setting out the namesof each insurer with which he has entered into re-insurance treatiesfrom any of his offices in India, and such record shall include allthe details of the terms of the treaties.
(12) (a) Every insurer shall maintain the following accounts inhis ledgers, namely:
(i) Re-insurance Accepted Account;
(ii) Re insurance Commission Paid Account;
(iii) Re Insurance Claims Payable Account;
(iv) Re-Insurance Claims Paid Account;
(v) Re-Insurance Ceded Account;
(vi) Re-Insurance Commission Received Account;
(vii) Re-insurance Claims Recoverable Account;
(viii) Re-Insurance Claims Recovered Account;
(b) An insurer shall be deemed to have complied with theprovisions of Cl.
(a), if the information required is otherwisereadily available from the existing books and accounts of theinsurer.
40. Search and seizure-(l) The powers of search and seizure underSec. 34- H of the Act shall be exercised in accordance with sub-rules(2) to (14).
(2) The Controller may, after recording his reasons for doing soauthorise any officer subordinate to him not lower in rank than anassistant Controller of Insurance (hereinafter in this rule referredto as the authorized officer) for the purposes of Sec. 34-H of theAct: provided that such authorization shall -(i) be in writing underhis signature; (ii) bear his seal; and
(iii) authorize the authorized officer to enter and search anybuilding or place specified therein, and to exercise the powers andperform the functions under sub-section (1) of Sec. 34-H of the Actwith such assistance of police officers or of the officer of theCentral Government, or both, as may be required.
(3) Whenever any building or place authorized to be searched isclosed, any person residing in or being in charge of such building orplace shall, on demand by the authorized officer and on production ofthe authority, allow him free ingress thereto and afford allreasonable facilities for a search therein.
(4) If ingress into such building or place cannot be so obtainedit shall be lawful for the authorized officer executing theauthority, with such assistance of police officers or of officers ofthe Central Government or of both as may be required to enter suchbuilding or place and search therein and in order to effect anentrance into such building or place, to break open any outer orinner door or window of any building or place, whether that of theperson to be searched or of any other persons, if after notificationof his authority and purpose and demand of admittance duly made, hecannot otherwise obtain admittance:
Provided that, if any such building or place is an apartment inactual occupancy of a woman, who according to custom does not appearin public, the authorized officer shall, before entering suchapartment, give notice to such woman that she is at liberty towithdraw and shall afford her every reasonable facility forwithdrawing and may then break open the apartment and enter it.
(5) The authorized officer may require any person who is theowner, or has the immediate possession, or control, of any box,locker, safe, almirah or any other receptacle situate in suchbuilding or place, or open the same and allow access to inspect orexamine its contents, and where the keys thereof are not available orwhere such person fails to comply with any such requirement, maycause any action to be taken including the breaking open of such box,locker, safe, almirah or other receptacle which the authorizedofficer may deem necessary for carrying out all or any of thepurposes -specified in the authority issued under sub-rule (2).
(6) The authorized officer may, where it is not practicable toseize any book, account or document, serve an order on the owner orthe person who is in immediate possession or control thereof that heshall not remove, part with or otherwise deal with it except with theprevious permission of the authorized officer who may take such stepsas may be necessary for ensuring compliance with this sub-rule.
(7) Where any person in or about such building or place isreasonably suspected of concealing about his person any book, accountor document for which search is being made, such person may also besearched by the authorized officer with such assistance as he mayconsider necessary. If such person is a woman, the search shall bemade by another woman with a strict regard to decency.
(8) Before making a search, the authorized officer about to makeit shall call upon two or more respectable inhabitants of thelocality in which the building or place to be searched is situate toattend and witness the search and may issue an order in writing tothem or any of them so to do.
(9) The search shall be made in the presence of the witnessesaforesaid and a list of books, accounts and documents seized in thecourse of such search and of the places in which they wererespectively found shall be prepared by the authorized officer andsigned by such witnesses; but no person witnessing a search shall berequired to attend as a witness of the search in any proceedingsunder the Act unless specially summoned.
(10) The occupant of the building or place searched or some personin his behalf shall be permitted to attend during the search and acopy of the list prepared under sub-rule (9) shall be delivered tosuch occupant or person. A copy shall also be forwarded to theController.
(11) When any person is searched under sub-rule (7) a list of allbooks, accounts and documents taken possession of shall be preparedand a copy thereof shall be delivered to, such person. A copy shallalso be forwarded to the controller.
(12) The authorized officer may convey the books, accounts andother documents, if any, seized by him in the course of the searchmade by him to the office of the Controller or to the office of theauthorized officer or to any other office under the jurisdiction ofthe Controller.
(13) The Controller or the officer in charge of the officementioned in subrule (12), as the case may be, shall take such stepsas he may consider necessary for the safe custody of books, accountsand other documents conveyed to him.
(14) The authorization of the Controller referred to in sub-rule(2) shall be in Form No. XVII.
Tariff Advisory Committee