Prohibition of transaction of insurance business by certain persons
Section 2C of the Insurance Act, 1938 deals with prohibition of transaction of insurance business by certain persons. Save as hereinafter provided, no person shall, after the commencement of the Insurance (Amendment) Act, 1950 (47 of 1950), begin to carry on any class of insurance business in [India] and no insurer carrying on any class of insurance business in [India] shall after the expiry of one year from such c The Act came into force on 01 Jul 1939.
1[2C. Prohibition of transaction of insurance business by certain persons.---(1) Save as hereinafter provided, no person shall, after the commencement of the Insurance (Amendment) Act, 1950 (47 of 1950), begin to carry on any class of insurance business in 2[India] and no insurer carrying on any class of insurance business in 2[India] shall after the expiry of one year from such commencement, continue to carry on any such business unless 3[it] is---
(a) a public company, or
(b) a society registered under the Co-operative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any State relating to co-operative societies 4[or the Multi-State Cooperative Societies Act, 2002 (39 of 2002)], or
4[(ba) a statutory body established by an Act of Parliament for time being in force to carry on insurance business; or]
5[(c) a company or a body established or incorporated under a law of any country outside India and engaged in re-insurance business that establishes a branch in India for the purpose of re-insurance business exclusively and includes Lloyd's established under the Lloyd's Act, 1871 (34 of 1871 (UK)) (United Kingdom) or any of its Members:]
Provided that the Central Government may, by notification in the Official Gazette, exempt from the operation of this section to such extent for such period and subject to such conditions as it may specify, any person or insurer for the purpose of carrying on the business of granting superannuation allowances and annuities of the nature specified in sub-clause (c) of clause (11) of section 2 or for the purpose of carrying on any general insurance business:
Provided further that in the case of an insurer carrying on any general insurance business no such notification shall be issued having effect for more than three year at any one time.
6[Provided also that no insurer other than an Indian insurance company shall begin to carry on any class of insurance business in India under this Act on or after the commencement of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999).]
7[Provided also that no company or a body established or incorporated under a law of any country outside India shall carry on any class of insurance business, other than re-insurance:]
8[Provided also 9[that an insurer carrying on insurance business], may carry on any 10[insurance business] in any Special Economic Zone as defined in clause (za) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005).]
(2) Every notification issued under sub-section (1) shall be laid before Parliament as soon as may be after it is issued.]
11[(3) Notwithstanding anything contained in sub-section (1), an insurance co-operative society may carry on any class of insurance business in India under this Act on or after the commencement of the Insurance (Amendment) Act, 2002 (42 of 2002).]
12[(4) No person other than an insurer shall use as part of its name or in connection with its business any of the words "insurance", "insurer", "assurance", "re-insurance", "insurance company" or any of their derivatives and no person shall carry on the insurance business in India unless it uses as part of its name at least one of such words, as may be specified by the regulations.
(5) An insurance intermediary may only use the words "insurance", "assurance", or "insurance company" to indicate the nature of its organisation and services as an insurance intermediary, in accordance with the regulations.
(6) An association of insurers or insurance intermediaries formed for the protection of their mutual interests and registered under the Companies Act, 2013 (18 of 2013) or any other applicable law may only use the words "insurance", "assurance", or "insurance company" to indicate the nature of its organisation, purposes and services, in accordance with the regulations.]
Section 2C, The Insurance Act, 1938 (Act 4 of 1938).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Made under this section, and citing it
1 instrument states that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
Another 2 instruments name this provision in its title or its text without being made under it.
Questions about Section 2C
What does Section 2C of the Insurance Act deal with?
Section 2C of the Insurance Act is headed "Prohibition of transaction of insurance business by certain persons". [2C. Prohibition of transaction of insurance business by certain persons.---(1) Save as hereinafter provided, no person shall, after the commencement of the Insurance (Amendment) Act, 1950 (47 of 1950), begin to carry on any class of insurance business in [India] and no insurer carrying on any class
How do I find court cases under Section 2C of the Insurance Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Insurance Act 1938 2C, section 2C Insurance Act 1938, section 2C of the Insurance Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 2C of the Insurance Act, and has it changed?
Its own text turns on section 2 (Definitions), so none of them can safely be read on its own. 2 other provisions in this corpus refer back to it. The rules and notifications made under it are where it actually bites, and there is one: most recently Notification on exemption of certain provisions of Insurance Act,1938 for carrying Insurance Business in SEZ. (2015).
When did Section 2C of the Insurance Act come into force?
Section 2C of the Insurance Act, cited as Insurance Act 1938 2C, came into force on 01 Jul 1939, having been enacted on 26 Feb 1938. It is in force as at the date shown on this page.
Other sections of this Act
- 37A. Power of Authority to prepare Scheme of Amalgamation1733 words
- 3. Registration1612 words
- 2. Definitions1604 words
- 106. Power of Court to order restoration of property of insurer or compensation in certain cases1514 words
- 114A. Power of Authority to make regulations1275 words
- 6A. Requirements as to capital structure and voting rights and maintenance of registers beneficial owners of shares1136 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 17 Oct 2026. This page is not a substitute for legal advice.