Prohibition of insurance business through principal agent, special agent and multilevel marketing
Section 42A of the Insurance Act, 1938 deals with prohibition of insurance business through principal agent, special agent and multilevel marketing. No insurer shall, on or after the commencement of the Insurance Laws (Amendment) Act, 2015 (5 of 2015), appoint any principal agent, chief agent, and special agent and transact any insurance business in India through them. The Act came into force on 01 Jul 1939.
1[42A. Prohibition of insurance business through principal agent, special agent and multilevel marketing. --(1) No insurer shall, on or after the commencement of the Insurance Laws (Amendment) Act, 2015 (5 of 2015), appoint any principal agent, chief agent, and special agent and transact any insurance business in India through them.
(2) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance policy through multilevel marketing scheme.
(3) The Authority may, through an officer authorised in this behalf, make a complaint to the appropriate police authorities against the entity or persons involved in the multilevel marketing scheme.
Explanation. --For the purpose of this section "multilevel marketing scheme" means any scheme or programme or arrangement or plan (by whatever name called) for the purpose of soliciting and procuring insurance business through persons not authorised for the said purpose with or without consideration of whole or part of commission or remuneration earned through such solicitation and procurement and includes enrolment of persons into a multilevel chain for the said purpose either directly or indirectly.]
Section 42A, The Insurance Act, 1938 (Act 4 of 1938).
Made under this section, and citing it
1 instrument names this provision in its title or its text without being made under it.
Questions about Section 42A
What does Section 42A of the Insurance Act deal with?
Section 42A of the Insurance Act is headed "Prohibition of insurance business through principal agent, special agent and multilevel marketing". [42A. Prohibition of insurance business through principal agent, special agent and multilevel marketing.
How do I find court cases under Section 42A 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 42A, section 42A Insurance Act 1938, section 42A 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 42A of the Insurance Act, and has it changed?
One instrument names it without being made under it, most recently Insurance Regulatory and Development Authority of India(Appointment of Insurance Agents) Regulations, 2016 (2016).
When did Section 42A of the Insurance Act come into force?
Section 42A of the Insurance Act, cited as Insurance Act 1938 42A, 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.