Life Insurance Corporation Act, 1956

10. Provisions as to composite insurers.-

1.      For the removal of doubts it is hereby declared that in any case where an insurer whose controlled business has been transferred to an vested in the corporation under this Act is a composite insurer, the provisions of the preceding sections shall only apply to the extent to which any property appertains to his controlled business and to rights and powers acquired, and to debts, liabilities and obligations incurred, and to contracts, agreements and other instruments made by the insurer for the purposes of his controlled business and to legal proceedings relating to those purposes, and the provisions of those sections shall be construed accordingly.

2.      The Central Government may, by rules made in this behalf provide—

a.      for the determination of the question whether any property appertains to his controlled business or whether any rights, powers, debts, liabilities or obligations were acquired or incurred or any contract, agreement or other instrument was made by the insurer for the purposes of his controlled business or whether any documents relate to those purposes;

b.     doe the allocation of the paid-up capital or assets representing such paid-up capital, as the case may be, between the controlled business of the insurer and any other business;

c.      for substituting for any agreements entered into by any insurer partly for the purposes of his controlled business and partly for other purposes separate agreements in the requisite terms and for any apportionments and indemnities consequent thereon;

d.     for the severance of leases comprising property of which part only is transferred to And vested in the Corporation by virtue of this Act and for apportionment consequent on such severance;

e.      for the apportionment and the making of financial adjustments with respects to any debts, liabilities of obligations incurred by any such insurer partly for the purposes of his controlled business and partly for other purposes and for any necessary variation of mortgages and encumbrances relating to such debts, liabilities or obligations;

f.      for the apportionment of the moneys and other assets belonging to any provident or superannuation fund or any other like fund to which the provisions of section 8 do not apply between persons employed in connection with the controlled business of an insurer and other persons;

g.     for any other matters supplementary to or consequential on the matters aforesaid for which provision appears to be necessary or expedient.

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3.      All rules made under this section shall be laid for not less than thirty days before both Houses of Parliament as soon as possible after they are made and shall be subject to such modifications as Parliament may make during the session in which they are so laid or the session immediately following.

4.      Where at any time before the expiration of six months from the appointed day a question has arisen under this section or under any rules made there under as to whether any property is or was held or used by the insurer for the purposes of his controlled business, the question shall be referred to the Tribunal for decision.

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