This Act is repealed by Insurance Ordinance, 2008 (Ordinance No.47 of 2008)[ বীমা অধ্যাদেশ, ২০০৮ (২০০৮ সনের ৪৭ নং অধ্যাদেশ)]
An Act to consolidate and amend the law relating to the business of insurance. 1 2

WHEREAS it is expedient to consolidate and amend the law relating to the business of insurance; It is hereby enacted as follows:-

CONTENTS

SECTIONS

PART IPRELIMINARY

1. Short title, extent and commencement
2. Definitions

PART IIPROVISIONS APPLICABLE TO INSURERS

2A. Insurers to be subject to this Act while liabilities remain unsatisfied
2B. This Act not to apply to certain insurers ceasing to enter into new contracts before commencement of Act
2C. Prohibition of transaction of insurance business by certain persons
3. Registration
3A. Renewal of Registration
3AA. Insurers not to transact both life and general insurance business
3B. Rates, terms and conditions of operation of an insurer
3BB. Basis for determination of premium rates
3BBB. Determination of premium rates for general insurance business
3C. Provisions relating to collection of premiums
3D. Provisions relating to reinsurances and insurances abroad
3E. Licensing of branch offices of insurers
3F. Restriction on issue of certain policies at new rates, etc.
4. [Omitted.]
5. Restriction on name of insurer
6. Requirements as to capital and share-holdings
7. Deposits
8. Reservation of deposits
9. Refund of deposits
10. Separation of accounts and funds
11. Accounts and balance-sheet
12. Audit
12A. Special audit
13. Actuarial report and abstract
14. Register of policies and register of claims
15. Submission of returns
16.[Omitted.]
17. Exemption from certain provisions of the Companies Act, 1913
17A. [Omitted.]
18. Furnishing reports
19. Abstract of proceedings of general meetings
20. Custody and inspection of documents and supply of copies
21. Powers of Chief Controller of Insurance regarding returns
22. Power of Chief Controller of Insurance to order revaluation 23. Evidence of documents
23. Evidence of documents
24. [Omitted.]
25. Returns to be published in statutory forms
26. Alterations in the particulars furnished with application for registration to be reported

INVESTMENT, LOANS AND MANAGEMENT

27. Investment of assets
27A. Insurers of general insurance business to have assets invested in Bangladesh
27B. Restriction on certain investments, etc.
28. Statement of investments of assets
29. Prohibition of loans
30. Liability of directors, etc., for loss due to contraventions of sections 27 and 29
31. Assets of insurer how to be kept
32. Appointment of managing agent prohibited
32A. Power to restrict payment of excessive remuneration
32B. Provisions relating to managers, etc.

INVESTIGATION

33. Power of Chief Controller of Insurance to order investigation
34. Powers of investigator
34A. Power to give directions to the insurer
34B. Power to require calling of meeting of directors, etc.
34C. Power to remove Chairman, Director, etc., of the insurer

AMALGAMATION AND TRANSFER OF INSURANCE BUSINESS

35. Amalgamation and transfer of Insurance business
36.Sanction of amalgamation and transfer by Court
37. Statements required after amalgamation and transfer
ASSIGNMENT OR TRANSFER OF POLICIES AND NOMINATIONS
38.Assignment and transfer of insurance policies
39.Nomination by policy-holder

COMMISSION AND REBATES AND LICENSING OF AGENTS

40. Prohibition of payment by way of commission or otherwise for procuring business
40A. Limitation of expenditure on commission
40B. Limitation of expenses of management in life insurance business
40C. Limitation of expenses of management in general insurance business
40D. Remuneration
41. Prohibition of rebates
42. Licensing of insurance agents
42A. Certificates to employers of agents
42B. Powers to ensure compliance with certain provisions
43. Register of insurance agents
43A. Provisions of contracts with agents
44. Prohibition of cessation of payment of commission
44A. Insurance surveyors to hold certificates
44B. Second survey

SPECIAL PROVISIONS OF LAW

45. Policy not to be called in question on ground of mis-statement after two years
46. Application of Bangladesh law to policies issued in Bangladesh
47. Payment of money into Court
47A. Dispute over claims on life policies of small amount
47B. Interest on late settlement of claims
47C. Dispute over motor insurance claim
47D. Qualifications of Chairman, etc.
47E. Resignation and removal
47F. Benches of the Board
47G. Fees for application
47H. Procedure and Powers of the Board
47I. Appeal
47J. Recovery of the claim as decided
47K. Notice to and hearing of insurance companies
47L. Other Jurisdiction of Board
48. Directors of insurers being companies
48A. Restriction on the life insurance agents’ becoming directors of Life Insurance Companies
48B. Restriction on becoming directors of insurers
48BB. Directors of insurers being public subscribers
48BBB. Restriction on appointment of nominated director
48BBBB. Chairman and Vice-Chairman
48C. Appointment of Chief Executives of insurers
48CC.Advisers of insurers
49. Restriction on dividends and bonuses
49A. Distribution of profits on life insurance business among policy-holders
50. Notice of options available to the assured on the lapsing of a policy
50A. Special provision in respect of certain life insurance policies
51. Supply of copies of proposals and medical reports
52. Prohibition of business on dividing principle

MANAGEMENT BY ADMINISTRATOR

52A. When Administrator for management of insurance business may be appointed
52B. Powers and duties of the Administrator
52C. Powers of Administrator respecting property liable to attachment under section 106
52D. Cancellation of contracts and agreements
52E. Termination of appointment of Administrator
52F. Finality of decision of appointing Administrator
52G. Penalty for withholding document or property from Administrator
52H. Protection of action taken under sections 52A to 52D

WINDING UP

53. Winding up by the Court
53A. Unpaid-up share capital
54. Voluntary winding up
55. Valuation of liabilities
56. Application of surplus assets of life insurance fund in liquidation or insolvency
57. Winding up secondary companies
58. Schemes for partial winding up of insurance companies
59. Return of deposits
60. Notice of policy values
61. Power of Court to reduce contracts of insurance

SPECIAL PROVISIONS RELATING TO EXTERNAL COMPANIES

62. Power of Government to impose reciprocal disabilities on non-Bangladesh companies
63. Particulars to be filed by insurers established outside Bangladesh
64. Books to be kept by insurers established outside Bangladesh
PART IIIPROVIDENT SOCIETIES
65. Definition of “provident society”
66. Restrictions on provident societies
67. Name
68. Insurable interest
69. Dividing business
70. Registration
70A. Renewal of registration
70B. Supplementary information and reports of alterations in particulars furnished with application for registration
71. Certain provisions of Part II to apply to provident societies
72. Working capital
73. Deposits
73A. Restriction on name of provident society
74. Rules
75. Amendment of rules
76. Supply of copy of rules
77. Registered office
78. Publication of authorised capital to contain also subscribed and paid-up capital
79. Registers and books
80. Revenue account, balance-sheet and annual statements
81. Actuarial report and abstract
82. Submission of returns to Chief Controller of Insurance
83. Actuarial examination of schemes
84. Separation of accounts and funds
85. Investment of funds
86. Inspection of books
87.Inquiry by or on behalf of Chief Controller of Insurance
87A. Amalgamation and transfer of insurance business
88. Winding up by Court and voluntary winding up
89. Reduction of insurance contracts
90. Appointment of liquidator
90A. Application of Act to liquidators
91. Powers of liquidator
92. Procedure at liquidation
93. Dissolution of provident society
94. Nominations and assignments

PART IVMUTUAL INSURANCE COMPANIES AND CO-OPERATIVE INSURANCE SOCIETIES

95. Definitions
96. Application of Act to Mutual Insurance Companies and Co-operative [* * *]Life Insurance Societies
97. Working capital of Mutual Insurance Companies and Co-operative Insurance Societies
98. Deposits to be made by Mutual Insurance Companies and Co-operative Insurance Societies
98A. Prohibitions of loans
99. Transferees and assignees of policies not to become members
100.Publication of notices and documents of Mutual Insurance Companies and Co-operative [* * *] Insurance Societies
101. Supply of documents to members

PART VMISCELLANEOUS

102. Penalty for default in complying with, or act in contravention of this Act
103. Penalty for transacting insurance business in contravention of sections 3, 7 and 9
104. Penalty for false statement in document
105. Wrongfully obtaining or withholding property
106. Power of Court to order restoration of property of insurer or compensation in certain cases
106A. Notice to and hearing of Chief Controller of Insurance
107. Previous sanction of Attorney General for institution of proceedings
108. Power of Court to grant relief
109. Cognizance of offences
110. Appeals
110A. Delegation of powers and duties of Chief Controller of Insurance
110B. Signature of documents
110C. Powers to call for information
111. Service of notices
112. Declaration of interim bonuses
113. Acquisition of surrender values policy
114. Power of Government to make rules
114A. Power to amend Schedules
114B. Powers of the Chief Controller
115. Alteration of forms
116. [Omitted.]
116A. Summary returns to be published
117. Saving of provisions of Companies Act, 1913
118. Exemptions
119. Inspection and supply of copies of published prospectus, etc.
120. Determination of market value of securities deposited under this Act
120A. Advisory Board
120AA. Publicity Board
120B. [Omitted.]
121-123 [Omitted.]