Power of Court to reduce contracts of insurance
Section 61 of the Insurance Act, 1938 deals with power of Court to reduce contracts of insurance. Where an insurance company is in liquidation or any other insurer is insolvent the [Tribunal] may make an order reducing the amount of the insurance contracts of the company or other insurer upon such terms and subject to such conditions as the [Tribunal] thinks just. The Act came into force on 01 Jul 1939.
61. Power of 1[Tribunal] to reduce contracts of insurance. --(1) Where an insurance company is in liquidation or any other insurer is insolvent the 1[Tribunal] may make an order reducing the amount of the insurance contracts of the company or other insurer upon such terms and subject to such conditions as the 1[Tribunal] thinks just.
(2) Where a company carrying on the business of life insurance has been proved to be insolvent, the 1[Tribunal] may if it thinks fit in place of making a winding up order reduce the amount of the insurance contracts of the company upon such terms and subject to such conditions as the 1[Tribunal] thinks fit.
(3) Application for an order under this section may be made either by the liquidator or by or on behalf of the company or by a policy-holder, or by the 2[Authority] and by any person whom the 1[Tribunal] thinks likely to be affected shall be entitled to be heard on any such application.
Section 61, The Insurance Act, 1938 (Act 4 of 1938).
Questions about Section 61
What does Section 61 of the Insurance Act deal with?
Section 61 of the Insurance Act is headed "Power of Court to reduce contracts of insurance". 61. Power of [Tribunal] to reduce contracts of insurance.
How do I find court cases under Section 61 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 61, section 61 Insurance Act 1938, section 61 of the Insurance Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
When did Section 61 of the Insurance Act come into force?
Section 61 of the Insurance Act, cited as Insurance Act 1938 61, 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.