Amalgamation and transfer of insurance business

Section 35 of the Insurance Act, 1938 deals with amalgamation and transfer of insurance business. Notwithstanding anything contained in any other law for the time being in force, no insurance business of an insurer shall be transferred to or amalgamated with the insurance business of any other insurer except in accordance with a scheme prepared under this section and approved by the Authority.] The Act came into force on 01 Jul 1939.

¹[(1) Notwithstanding anything contained in any other law for the time being in force, no insurance business of an insurer shall be transferred to or amalgamated with the insurance business of any other insurer except in accordance with a scheme prepared under this section and approved by the Authority.]

(2) Any scheme prepared under this section shall set out the agreement under which the transfer or amalgamation is proposed to be effected, and shall contain such further provisions as may be necessary for giving effect to the scheme.

(3) Before an application is made to the ²[Authority] ³[to approve any such scheme] notices of the intention to make the application together with a statement of the nature of the amalgamation or transfer, as the case may be, and of the reason therefore shall, at least two months before the application is made, be sent to the ²[Authority] ⁴[and certified copies, four in number, of each of the following documents shall be furnished to the ²[Authority], and other such copies shall] during the two months aforesaid be kept open for the inspection of the members and policy-holders at the principal and branch offices and chief agencies of the insurers concerned, namely: --

(a) a draft of the agreement or deed under which it is proposed to effect the amalgamation or transfer;

⁵[(b) balance sheets in respect of the insurance business of each of the insurers concerned in such amalgamation or transfer, prepared in such forms as may be specified by the regulations;

(c) actuarial reports and abstracts in respect of the life insurance business of each of the insurers so concerned, prepared in conformity with the regulations specified in this regard.]

(d) a report on the proposed amalgamation or transfer, prepared by an independent actuary who has never been professionally connected with any of the parties concerned in the amalgamation or transfer at any time in the five years preceding the date on which he signs hi s report;

(e) any other reports on which the scheme of amalgamation or transfer was founded.

The balance-sheets, reports and abstracts referred to in clauses (b), (c) and (d) shall be prepared as at the date at which ⁶[the amalgamation or transfer if approved] by the ⁷[Authority] is to take effect, which date shall not be more than twelve months before the date on which the application to the ⁷[Authority] is made under this section:

Provided that if the ⁷[Authority] so directs in the case of any particular insurer there may be substituted respectively for the balance-sheet, report and abstract referred to in clauses (b) and (c) prepared in accordance with this sub-section certified copies of the last balance-sheet and last report and abstract prepared in accordance with sections 11 and 13 ⁸[of this Act or sections 7 and 8 of the Indian Life Assurance Companies Act, 1912 ( 6 of 1912 ),] if that balance-sheet is prepared as at a date not more than twelve months, and that report and abstract as at a date not more than five years, before the date on which the application to the ⁷[Authority] is made under this section].

Section 35, The Insurance Act, 1938 (Act 4 of 1938).