Definitions

Section 2 of the Insurance Act, 1938 deals with definitions. In this Act, unless there is anything repugnant in the subject or context, --- [(1) "actuary" means an actuary as defined in clause (a) of sub-section (1) of section 2 of the Actuaries Act, 2006 (35 of 2006); The Act came into force on 01 Jul 1939.

In this Act, unless there is anything repugnant in the subject or context, ---

¹[(1) "actuary" means an actuary as defined in clause (a) of sub-section (1) of section 2 of the Actuaries Act, 2006 (35 of 2006);

(1A) "Authority" means the Insurance Regulatory and Development Authority of India established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999);]

²[(2) "policy-holder" includes a person to whom the whole of the interest of the policy-holder in the policy is assigned once and for all, but does not include an assignee thereof whose interest in the policy is defeasible or is for the time being subject to any condition;]

³[(3) "approved securities" means---

(i) Government securities and other securities charged on the revenues of the Central Government or of the Government of a ⁴*** State or guaranteed fully as regards principal and interest by the Central Government, or the Government of any ⁴*** State;

(ii) debentures or other securities for money issued under the authority of any Central Act or Act of a State Legislature by or on behalf of a port trust or municipal corporation ⁵[; and]

(iii) shares of a corporation established by law and guaranteed fully by the Central Government or the Government of a ⁶*** State as to the repayment of the principal and the payment of dividend;

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⁹[Explanation. In sub-clauses (i) and (iii), "Government of a State" in relation to any period before the 1st November, 1956, means the Government of a Part A State.]

¹⁰[(4) "auditor" means a person qualified under the Chartered Accountants Act, 1949 (38 of 1949), to act as an auditor of companies;]

¹¹[(4A) "banking company" and "company" shall have the meanings respectively assigned to them in clauses (c) and (d) of ¹²[section 5 of the Banking Regulation Act, 1949 (10 of 1949)];]

(5) "certified" in relation to any copy or translation of a document required to be furnished by or on behalf of ¹³[an insurer ¹⁴[***]] means certified by a principal officer of ¹⁵[such insurer ¹⁶[or any person authorised by it]] to be a true copy or a correct translation, as the case may be;

¹⁷[(5A) "class of insurance business" means the class of---

(a) life insurance business;

(b) general insurance business;

(c) health insurance business;

(d) re-insurance business; or

(e) such other class of insurance business as may be notified by the Central Government in consultation with the Authority from time to time;]

¹⁸[(5B) "Controller of Insurance" means the officer appointed by the Central Government under section 2B to exercise all the powers, discharge the functions and perform the duties of the Authority under this Act or the Life Insurance Corporation Act, 1956 (31 of 1956) or the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972) or the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999);]

(6) "Court" means the principal Civil Court of original jurisdiction in a district, and includes the High Court in exercise of its ordinary original civil jurisdiction;

¹⁹[(6A) "fire insurance business" means the business of effecting, otherwise than incidentally to some other class of insurance business, contracts of insurance against loss by or incidental to fire or other occurrence customarily included among the risks insured against in fire insurance policies;

(6B) "general insurance business" means fire, marine or miscellaneous insurance business, whether carried on singly or in combination with one or more of them;]

²⁰[(6C) "health insurance business" means the business of effecting the contracts of insurance that provide sickness benefits or pay for medical and health expenses and includes,---

(i) the personal accident insurance business of effecting the contracts of insurance that provide for payment of money in the event of death, disablement or hospitalisation arising out of an accident; and

(ii) the travel insurance business of effecting the contracts of insurance that provide for sickness benefits or pay for medical and health expenses or payment of money in the event of death, disablement or hospitalisation arising out of an accident or for losses suffered, in the course of travel;

(6D) "insurance business" means the business of effecting insurance contracts and includes any other form of contract as may be notified by the Central Government in consultation with the Authority from time to time.

Explanation.In this clause, the expression "insurance contract" means the contract whereby the insurer, on payment of premium, undertakes to assume risk and to pay to the insured person an agreed compensation for loss, damage or liability arising from a contingent event on such terms and conditions and subject to such limitations as may be agreed;]

²¹[(7) "Government security" means a Government security as defined in the Public Debt Act, 1944 (18 of 1944);]

²²[(7A) "Indian insurance company" means an insurer which is a company formed and registered under the Companies Act, 2013 (18 of 2013), as a public company and whose sole purpose is to carry on life insurance business or general insurance business or re-insurance business or health insurance business;]

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²⁴[(8A) "insurance co-operative society" means an insurer being a co-operative society formed and registered on or after the commencement of the Insurance (Amendment) Act, 2002 (42 of 2002), as a co-operative society under---

(a) the provisions of the Co-operative Societies Act, 1912 (2 of 1912);

(b) any other law for the time being in force in any State relating to co-operative societies; or

(c) the provisions of the Multi-State Co-operative Societies Act, 2002 (39 of 2002),

and whose sole purpose is to carry on life insurance business or general insurance business or health insurance business in India;]

²⁵[(9) "insurer" means a person who carries on insurance business;]

(10) "insurance agent" means an insurance agent ²⁶*** ²⁷*** who receives or agrees to receive payment by way of commission or other remuneration in consideration of his soliciting or procuring insurance business 3 [including business relating to the continuance, renewal or revival of policies of insurance];

²⁸[(10A) "investment company" means a company whose principal business is the acquisition of shares, stocks, debentures or other securities;]

²⁹[(10B) "insurance intermediary" includes---

(a) insurance brokers;

(b) re-insurance brokers;

(c) insurance consultants;

(d) corporate agents;

(e) third party administrator;

(f) surveyors and loss assessors;

(g) managing general agents;

(h) insurance repositories; and

(i) such other entities, as may be notified by the Authority from time to time;]

³⁰[(11) "life insurance business" means the business of effecting contracts of insurance upon human life, including any contract whereby the payment of money is assured on death (except death by accident only) or the happening of any contingency dependent on human life, and any contract which is subject to payment of premiums for a term dependent on human life and shall be deemed to include---

(a) the granting of disability and double or triple indemnity accident benefits, if so provided in the contract of insurance,

(b) the granting of annuities upon human life; and

(c) the granting of superannuation allowances and ³¹[benefit payable out of any fund] applicable solely to the relief and maintenance of persons engaged or who have been engaged in any particular profession, trade or employment or of the dependents of such persons;]

³²[Explanation.For the removal of doubts, it is hereby declared that "life insurance business" shall include any unit linked insurance policy or scrips or any such instrument or unit, by whatever name called, which provides a component of investment and a component of insurance issued by an insurer referred to in clause (9) of this section.]

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³⁵[(13A) "marine insurance business" means the business of effecting contracts of insurance upon vessels of any description, including cargoes, freights and other interests which may be legally insured, in or in relation to such vessels, cargoes and freights, goods, wares, merchandise and property of whatever description insured for any transit by land or water, or both, and whether or not including warehouse risks or similar risks in addition or as incidental to such transit, and includes any other risks customarily included among the risks insured against in marine insurance policies;

(13B) "miscellaneous insurance business" means the business of effecting contracts of insurance which is not principally or wholly of any kind or kinds included in clauses (6A), (11) and (13A);]

³⁶[(13BA) "National Company Law Tribunal" means the National Company Law Tribunal constituted under ³⁷[section 408] of ³⁸[the Companies Act, 2013 (18 of 2013)];

(13BB) "National Company Law Appellate Tribunal" means the National Company Law Appellate Tribunal constituted under ³⁹[section 410] of ³⁸ [the Companies Act, 2013 (18 of 2013);]

⁴⁰[(13BC) "premium" means the amount paid or payable as consideration to the insurer by the policyholder for a contract of insurance;]

(14) "prescribed" means prescribed by rules made under ⁴¹[this Act]; and

⁴⁰[(14A) "principal officer" means an officer of an insurer, authorised as such for the purposes of this Act;]

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(16) "private company" and "public company" have the meanings respectively assigned to them in ⁴³[clause (68) and ⁴⁴[clause (72)] of section 2 of the Companies Act, 2013 (18 of 2013)];

⁴⁵[(16A) "regulations" means the regulations framed by the Insurance Regulatory and Development Authority of India established under the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999);

(16B) "re-insurance" means the insurance of part of one insurer's risk by another insurer who accepts the risk for a mutually acceptable premium;

(16C) "Securities Appellate Tribunal" means the Securities Appellate Tribunal established under section 15K of the Securities and Exchange Board of India Act, 1992 (15 of 1992);]

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Section 2, The Insurance Act, 1938 (Act 4 of 1938).