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[64V. Assets and liabilities how to be valued. —(1) For the purpose of ascertaining compliance
with the provisions of section 64VA, assets shall be valued at value not exceeding their market or
realisable value and certain assets may be excluded by the Authority in the manner as may be specified by
the regulations made in this behalf.
(2) A proper value shall be placed on every item of liability of the insurer in the manner as may be
specified by the regulations made in this behalf.
1. Subs. by Act 5 of 2015, s. 83, for sections 64V and 64VA (w.e.f. 26-12-2014).
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(3) Every insurer shall furnish to the Authority along with the returns required to be filed under this
Act, a statement, certified by an Auditor, approved by the Authority, in respect of general insurance
business or an actuary approved by the Authority in respect of life insurance business, as the case may be,
of his assets and liabilities assessed in the manner required by this section as on the 31st day of March of
each year within such time as may be specified by the regulations.
64VA. Sufficiency of assets. —(1) Every insurer and re-insurer shall at all times maintain an excess
of value of assets over the amount of liabilities of, not less than fifty per cent. of the amount of minimum
capital as stated under section 6 and arrived at in the manner specified by the regulations.
(2) An insurer or re-insurer, as the case may be, who does not comply with sub-section (1), shall be
deemed to be insolvent and may be wound-up by the court on an application made by the Authority.
(3) The Authority shall by way of regulation made for the purpose, specify a level of solvency margin
known as control level of solvency on the breach of which the Authority shall act in accordance with the
provisions of sub-section (4) without prejudice to taking of any other remedial measures as deemed fit:
Provided that if in respect of any insurer the Authority is satisfied that either by reason of an
unfavourable claim experience or because of a sharp increase in the volume of new business, or for any
other reason, compliance with the provisions of this sub-section shall cause undue hardship to the insurer,
it may direct that for such period and subject to such conditions as it may specify, the provisions of this
sub-section shall apply to that insurer with such modifications provided that such modifications shall not
result in the control level of solvency being less than what is stipulated under sub-section (1).
(4) If, at any time, an insurer or re-insurer does not maintain the required control level of solvency
margin, he shall, in accordance with the directions issued by the Authority, submit a financial plan to the
Authority, indicating a plan of action to correct the deficiency within a specified period not exceeding six
months.
(5) An insurer who has submitted a plan, as required under sub-section (4), the Authority shall
propose modifications to the plan, if the Authority considers the same inadequate, and in such an
eventuality, the Authority shall give directions, as may be deemed necessary, including direction in regard
to transacting any new business, or, appointment of an administrator or both.
(6) An insurer or re-insurer, as the case may be, who does not comply with the provisions of
sub-section (4) shall be deemed to have made default in complying with the requirements of this section.
(7) The Authority shall be entitled at any time to take such steps as it may consider necessary for the
inspection or verification of the assets and liabilities of any insurer or re-insurer, or for securing the
particulars necessary to establish that the requirements of this section have been complied with as on any
date, and the insurer or re-insurer, as the case may be, shall comply with any requisition made in this
behalf by the Authority, and in the event of any failure to do so within two months from the receipt of the
requisition, the insurer or re-insurer, as the case may be, shall be deemed to have made default in
complying with the requirements of this section.
(8) In applying the provisions of sub-section (1) to any insurer or re-insurer, as the case may be, who
is a member of a group, the relevant amount for that insurer shall be an amount equal to that proportion of
the relevant amount which that group, if considered as a single insurer, would have been required to
maintain as the proportion of his share of the risk on each policy issued by the group bears to the total risk
on that policy:
Provided that when a group of insurers ceases to be a group, every insurer in that group who
continues to carry on any class of insurance business in India shall comply with the requirements of subsection (1) as if he had not been an insurer in a group at any time:
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Provided further that it shall be sufficient compliance of the provisions of the foregoing proviso if the
insurer brings up the excess of the value of his assets over the amount of his liabilities to the required
amount within a period of six months from the date of cessation of the group:
Provided also that the Authority may, on sufficient cause being shown, extend the said period of six
months by such further periods as it may think fit, so, however that the total period may not in any case
exceed one year.
(9) Every insurer shall furnish to the Authority return giving details of solvency margin in such form,
time, manner including its authentication as may be specified by the regulations.]
64VB. No risk to be assumed unless premium is received in advance.—(1) No insurer shall
assume any risk in India in respect of any insurance business on which premium is not ordinarily payable
outside India unless and until the premium payable is received by him or is guaranteed to be paid by such
person in such manner and within such time as may be prescribed or unless and until deposit of such
amount as may be prescribed, is made in advance in the prescribed manner.
(2) For the purposes of this section, in the case of risks for which premium can be ascertained in
advance, the risk may be assumed not earlier than the date on which the premium has been paid in cash or
by cheque to the insurer.
Explanation. —Where the premium is tendered by postal money order or cheque sent by post, the
risk may be assumed on the date on which the money order is booked or the cheque is posted, as the case
may be.
(3) Any refund of premium which may become due to an insured on account of the cancellation of a
policy or alteration in its terms and conditions or otherwise shall be paid by the insurer directly to the
insured by a crossed or order cheque or by postal money order and a proper receipt shall be obtained by
the insurer from the insured, and such refund shall in no case be credited to the account of the agent.
(4) Where an insurance agent collects a premium on a policy of insurance on behalf of an insurer, he
shall deposit with, or dispatch by post to, the insurer, the premium so collected in full without deduction
of his commission within twenty-four hours of the collection excluding bank and postal holidays.
(5) The Central Government may, by rules, relax the requirements of sub-section (1) in respect of
particular categories in insurance policies.
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[(6) The Authority may, from time to time, specify, by the regulations made by it, the manner of
receipt of premium by the insurer.]
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[64VC. Restrictions on opening of new place of business.—No insurer shall, after the
commencement of the Insurance (Amendment) Act, 1968 (62 of 1968), open a new place of business or
close a place in India or outside India or change otherwise than within the same city, town or village, the
location of an existing place of business situated in India or outside India, except in the manner as may be
specified by the regulations.]
[PART III.— PROVIDENT SOCIETIES] Omitted by the Insurance Laws (Amendment) Act, 2015 (5 of
2015) s. 85 (w.e.f. 26-12-2014).
65. [Definition of “provident society”.] Omitted s. 85, ibid. (w.e.f. 26-12-2014).
1. Ins. by Act 42 of 2002, s. 13 (w.e.f. 23-9-2002).
2. Subs. by Act 5 of 2015, s. 84, for section 64VC (26-12-2014).
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65A. [Prohibition of transaction of insurance business by provident societies other than public
companies or co-operative societies.] omitted by the Insurance Laws (Amendment) Act, 2015 (5 of 2015)
s. 85 (w.e.f. 26-12-2014).]
66. [Restrictions on provident societies.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
67. [Name.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
68. [Insurable interest.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
69. [Dividing Business.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
70. [Registration.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
70A. [Renewal of registration.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
70B. [Supplementary information and reports of alterations in particulars furnished with application
for registration.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
71. [Prohibition of managing agents.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
72. [Working capital.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
73. [Deposits.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
73A. [Restriction on name of provident society.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
74. [Rules.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
75. [Amendment of rules.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
76. [Supply of copy of rules.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
77. [Registered office.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
78. [Publication of authorized capital to contain also subscribed and paid up capital.] Omitted by
s. 85, ibid. (w.e.f. 26-12-2014).
79. [Registered and books.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
80. [Revenue account, balance-sheet and annual statements.] Omitted by s. 85, ibid. (w.e.f. 26-12-
2014).
81. [Actuarial report and abstract.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
82. [Submission of returns to Authority.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
83. [Actuarial examination of schemes.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
84. [Separation of accounts and funds.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
85. [Investment funds.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
86. [Inspection of books.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
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87. [Inquiry by or on behalf of Superintendent of Insurance.] Omitted by the Insurance Laws
(Amendment) Act, 2015 (5 of 2015) s. 85 (w.e.f. 26-12-2014).
87A. [Amalgamation and transfer of insurance business.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
88. [Winding up by Court and voluntary winding up.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
89. [Reduction of Insurance contracts.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
90. [Appointment of liquidator.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
90A. [Application of Act to liquidators.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
91. [Powers of liquidator.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
92. [Procedure at liquidation.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
93. [Dissolution of provident society.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
94. [Nominations and assignments.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
[PART IIIA.— INSURANCE CO-OPERATIVE SOCIETIES] Omitted by the Insurance Laws (Amendment) Act,
2015 (5 of 2015) s. 85 (w.e.f. 26-12-2014).
94A. [Insurance co-operative society to be an insurer.] Omitted by s. 85, ibid. (w.e.f. 26-12-2014).
[PART IV.— MUTUAL INSURANCE COMPANIES AND CO-OPERATIVE LIFE INSURANCE SOCIETIES.] Omitted by
the Insurance Laws (Amendment) Act, 2015 (5 of 2015) s. 85 (w.e.f. 26-12-2014).
95. [Definitions.] omitted by the Insurance Laws (Amendment) Act, 2015 (5 of 2015) s. 86, ibid. (w.e.f.
26-12-2014).]
96. [Application of Act to Mutual Insurance Companies and Co-operative Life Insurance Societies.]
Omitted by s. 86, ibid. (w.e.f. 26-12-2014).
97. [Working Capital of Mutual Insurance Companies and Co-operative Life Insurance Societies.]
Omitted by s. 86, ibid. (w.e.f. 26-12-2014).
98. [Deposits to be made by Mutual Insurance Companies and Co-operative Life insurance Societies.]
Omitted by s. 86, ibid. (w.e.f. 26-12-2014).
98A. [Prohibition of loans.] Omitted by s. 86, ibid. (w.e.f. 26-12-2014).
99. [Transferees and assignees of policies not to become members.] Omitted by s. 86, ibid. (w.e.f. 26-
12-2014).
100. [Publication of notices and documents of Mutual Insurance Companies and Co-operative Life
Insurance Societies.] Omitted by s. 86, ibid. (w.e.f. 26-12-2014).
101. [Supply of documents to members.] Omitted by s. 86, ibid. (w.e.f. 26-12-2014).