THE PROVIDENT INSURANCE SOCIETIES ACT.

Transcription

1 THE PROVIDENT INSURANCE SOCIETIES ACT. CONTENTS. Sections. 1. * * 2 D efinitions. 3. A pplication o f A ct. Preliminary. # # General. 4- Insurable interest. 5. Provisions to be made by rules. 6. R egistration o f Provident Insurance Societies. 7. Unregistered society not to receive prem ium or contribution. 8. Amendment o f rules. 9. R ig h t to supply of copies o f rules. 10. Register o f members. 11. Publication o f authorized, subscribed and paid-up capital, 12. Office.

2 88 Provident Insurance Societies. Sections 13. Revenue-account and balance-sheet. 14- D elivery and publication o f revenue-account, etc. 15- Record o f insurances effected on life other than life o f person insuring. 16- Inspection of books. 17. Inquiry. 18. Cancellation o f registry- 19. L iquida tors. 20. Appeals- Appeals- Offences and Procedure. 21- Penalty fo r non-compliance w ith A ct- 22. Penalty fo r fa lsifyin g documents. 23. Cognizance o f offences. 24. Rules. Rules. Miscellaneousl y. Saving o f existing policies. 26. Power o f President to exempt from provisions o f the Act. THE PROVIDENT INSURANCE SOCIETIES ACT. [ I n d i a A c t V, 1912-] (18th March, 1912.) Preliminary. * * * * Definitions. 2. In this Act, unless there is anything repugnant in the subject or context, (1) C o u rt means the principal c iv il C ourt o f original jurisdiction in a district, and includes the H igh C ourt in the exercise o f its ordinary original c iv il ju risd ictio n : (2) financial year means each period o f twelve months at the end o f which the balance o f the accounts o f any Provident Insurance Society is struck, or, if no such balance is struck, then the calendar ye a r: (3) life assurance business means the issue of, or the undertaking o f lia b ility under, policies o f assurance upon human life, or the granting o f annuities upon human life : (4) policy o f assurance on human life means any instrum ent by which the payment o f money is assured on death (except death by accident only) or the happening of any contingency dependent on human life, or any instrument evidencing a contract which is subject to payment of premiums fo r a term dependent on human lif e :

3 Provident Insurance Societies. 89 (5) policy-holder means the person who fo r the tim e being is the legal holder o f the policy fo r securing the contract w ith the Provident Insurance S ociety: (6) where a Provident Insurance Society grants annuities upon human life, policy includes the instrument evidencing the contract to pay such an annuity, and policy-holder includes a n n u ita n t: (7) prescribed means prescribed by rules made under this A c t : (8) Provident Insurance Society means any person who, or body, of persons whether corporate or unincorporate which, receives premiums or contributions fo r insuring money to be paid on the birth, marriage or death o f any person or on the happening of such other contingency or class o f contingency as may be prescribed: and (9) Registrar means any person who may be appointed by the President o f the U nion to perform the duties o f the Registrar under this A ct. 3. Nothing in this A c t shall apply to any Provident Insurance Society carrying on life assurance business, which undertakes to pay on any life assurance policy, or series o f life assurance policies on any one life, an annuity exceeding fifty rupees or a gross sum exceeding five hundred rupees, or w hich receives or undertakes to receive by way of prem ium or contribution fo r life assurance on any one life any sum exceeding two hundred and fifty rupees where the said premiums or contributions are payable fo r one year or a lim ited number o f years, or exceeding twenty-five rupees in any one year where the premiums or contributions are unlim ited in number and term inable on death or the occurrence o f an uncertain event : Provided that, in determining whether this A ct applies to any Provident Insurance Society carrying on life assurance business, contracts entered into by the society before the 18th M arch, 1912,1 shall not be taken into consideration Application of Act. General. 4. N o Provident Insurance Society shall receive any prem ium or c o n tribution fo r insuring money to be paid on the death o f any person other than the person paying such premium or contribution or the wife, husband, child, parent, brother or sister o f such person. 5. Every Provident Insurance Society shall by its rules (a) specify the object, name and registered office o f the society ; (b) prescribe the proportion o f the annual income o f the society derived fro m premiums or contributions which may be disbursed fo r the expenses o f management o f the society; (c) in the case o f a society which by rule or practice divides any part o f the funds thereof, provide fo r the payment o f a ll debts due 1 Date o commencement of this Act. Insurable interest. Provisions to be made by rules.

4 Registration o f Provident Insurance Societies. 90 Provident Insurance Societies by the society existing at the time o f division before any such division has taken place ; and (d) provide fo r any other matters w hich may be prescribed. 6. ( l) Every Provident Insurance Society shall, before it receives any premium or contribution, apply to the Registrar fo r that part o f the Union o f Burma in which the office o f the society is situate fo r registration under this Act, and shall deliver to him a copy o f the rules o f the society. (2) The Registrar shall, on being satisfied that such rules com ply w ith the provisions o f this A ct, acknowledge the receipt of the rules and register the society and its rules (J) I f the Registrar is not satisfied that the rules or any o f them comply w ith the provisions o f this A ct, he shall send to the Provident Insurance Society a notice by post stating in what respect such rule or rules is or are not in accordance w ith the provisions o f this A ct, and calling upon such society to deliver to him an amended rule or rules w ith in sixty days. (4) On receipt of a notice under sub-section (3), the Provident Insurance Society may w ithin sixty days deliver to the Registrar an amended rule or rules in co nform ity w ith this A ct, and the Registrar shall thereupon acknowledge the receipt o f the rules and register the society and its rules as hereinbefore provided. Unregistered society not to receive premium or contribution. Amendment of rules. 7. N o Provident Insurance Society shall receive any premium or contribution, unless it is registered in accordance w ith the provisions o f this A ct. 8- ( /) No amendment of any rule of a Provident Insurance Society shall be valid u n til the same has been registered under this Act, fo r which purpose a copy o f the amended rule shall be sent to the R egistrar. (2) The Registrar shall, on being satisfied that any amendment o f a rule is not contrary to the provisions o f this A ct, issue to the society an acknowledgment of the registration o f the same. Right to supply of copies of rules. Register of members. 9. Every Provident Insurance Society shall, on demand, deliver free o f cost to any member of the society a copy o f the rules of the society, and to any person other than a member a copy of such rules on the payment o f a sum not exceeding one rupee. 10. Every Provident Insurance Society which is not a company, as defined in section 2 o f the Burma Companies A ct, shall cause to be kept in the prescribed form a register o f the names and addresses o f its members. Publication of authorized, subscribed and paid-up capital. 11. Where any notice, advertisement or other official publication of a Provident Insurance Society contains a statement o f the amount of the authorized capital o f the society, the publication shall also contain a statement of the amount o f the capital which has been subscribed and the amount paid up.

5 Provident Insurance Societies Every Provident Insurance Society which is not a company, as defined in section 2 of the Burma Companies A ct, shall have an office on the outside o f which it shall display and keep displayed its name in a conspicuous position in legible letters, to which a ll communications and notices may be addressed, and shall give notice to the Registrar o f the situation o f such office and o f any change therein. Office. 13. Every Provident Insurance Society shall, at the expiration o f each financial year, prepare a revenue-account and balance-sheet in the prescribed form and verified in the prescribed manner, and shall cause them to be audited by an auditor possessing the prescribed qualifications. 14. Every Provident Insurance Society shall, w ith in six months o f the expiration of each financial year, deliver to the Registrar the revenue-account and balance-sheet required by section 13, and shall publish them in the prescribed manner. Revenueaccount and balancesheet. D elivery and publication of revenueaccount, etc. 15. Every Provident Insurance Society shall m aintain in the prescribed form a record o f every insurance effected on a life other than the life o f the person insuring, and shall deliver a copy o f such record to the Registrar, together w ith the balance-sheet and revenue-account. Record of insurances effected on life other than life of person insuring. 16. The books o f every Provident Insurance Society shall at a ll reasonable hours be open to inspection by the Registrar, or by any person appointed by him in this behalf, or by any member o f the society. 17. (I) The Registrar may, i f he thinks fit, o f his own m otion, and shall, upon the application of ten or more members or policy-holders o f a Provident Insurance Society, hold or direct an inquiry to be held by an actuary possessing the prescribed qualifications appointed by him by order in w riting in this behalf as to the solvency o f any Provident Insurance Society or as to the manner in which the business o f any such society is conducted. (2) A n application to the Registrar under sub-section (1) shall be supported by such evidence as the Registrar may require fo r the purpose of showing that the applicants have good reason fo r applying fo r an inquiry. (3) The Registrar may require the applicants under sub-section (l) to give such security as he thinks fit fo r the costs o f the proposed inquiry before such an in q u iry is held. (4) A ll expenses of, and incidental to or prelim inary to, any inquiry made on application as aforesaid shall be defrayed by the applicants therefor or out o f the funds o f the society or by the members or officers o f the society in such proportions as the Registrar may direct by order in w riting. (5) A n order made under sub-section (4) shall on application be enforced by any c iv il Court having local jurisdiction in the same manner as a decree of such Court. Inspection o f books. Inquiry.

6 92 Provident Insurance Societies. (6) A person holding an in q u iry under this section shall have access to a ll the books and documents o f the society, and shall have power to ca ll upon the society and the officers of the society to furnish such statements and other in fo rm a tio n in relation to its business as he may direct. (7) The result o f the inquiry shall be communicated to the society and to the applicants ( if any). C ancellation o{ registry. 18. When an inquiry has been held under section 17, the Registrar may, i f he is satisfied (a) that the society is insolvent, or m ust necessarily become so, or (b) that the business o f any such society is conducted fraudulently or not in accordance w ith the rules thereof, after giving previous notice in w ritin g in such manner as he thinks fit specifying briefly the grounds o f the proposed cancellation, cancel the registry o f the society. Liquidators. 19. ( 1) Where the registry o f a Provident Insurance Society is cancelled in accordance w ith the provisions of section 18, the Registrar may appoint a liquidato r to wind up the society. (2) A liq u id a to r appointed under sub-section ( /) shall have power (a) to institute or defend any legal proceedings on behalf o f the society by his name o f o ffice; (b) to determine the contribution to be made by members o f the society, respectively, to the assets o f the society ; (c) to investigate all claims against the society and to decide questions o f p rio rity arising between claimants ; (d) to determine by w hat persons and in what proportions the costs o f the liquidatio n are to be b o rn e ; and (e) to give such directions in regard to the collection and d istrib u tio n o f the assets o f the society as may appear to him to be necessary fo r winding up the affairs o f the society. (3) Subject to any rules o f procedure made under this Act, a liquidato r appointed under this section shall, in so fa r as such powers are necessary to carry out the purposes o f this section, have power to summon and enforce the attendance o f witnesses and to compel the production o f documents by the same means and as far as may be in the same manner as is provided in the case o f a c iv il C ourt by the Code o f C iv il Procedure. (4) Orders made under this section shall on application be enforced as fo llo w s : (a) when made by a liq u id a to r, by any c iv il C ourt having local jurisdiction in the same manner as a decree o f such C o u rt; (b) when made by the C ourt on appeal, in the same manner as a decree o f the Court.

7 Provident Insurance Societies 93 Appeals. 20. ( I) A n appeal shall lie to the C ourt w ith in th irty days (a) fro m an order o f the R egistrar refusing to register a Provident Insurance Society or any rules or amendments o f rules o f such society ; (b) fro m an order o f the R egistrar cancelling the registry o f a society; (c) fro m an order made by a liq u id a to r appointed under scction 19. (2) Save as hereinbefore expressly provided, orders made under this A c t shall be final and conclusive. Offences and Procedure. 21. A n y Provident Insurance Society which makes default in com plying w ith any of the requirements of this A ct. and every director, manager or secretary or other officer or agent of the society, who is know ingly a party to the default, shall be punishable w ith fine which may extend to five hundred rupees, or, in the case o f a continuing default, w ith fine which may extend to two hundred and fifty rupees fo r every day during which the default continues. 22. I f any register, account, balance-sheet or other document required by th is A c t is false in any particular to the knowledge o f any person who signs it, such person shall be punishable w ith im prisonm ent fo r a term which may extend to tw o years, or w ith fine, or w ith both. 23. No Court in fe rio r to that of a Magistrate o f the first class shall try any offence against this A ct. Rules. 24. (1) The President o f the U nion may make rules to carry out the Rules. purposes o f this A ct. (2) In particular, and w ithout prejudice to the generality o f the foregoing power, such rules may prescribe (a) contingencies or class o f contingencies and thereby extend the application o f this A c t to the receipt o f premiums or c o n tributions fo r insuring money to be paid on the happening o f such contingencies or class o f contingencies; (b) the matters in respect o f w hich a society shall make rules ; (c) the fo rm o f any account, return or register required by this A ct, and the manner in which any such account, return or register shall be verifie d ; (d) the fees to be charged fo r matters transacted under this A ct, and the manner in w hich the same are to be collected ; (e) the qualification o f auditors and actuaries under this A c t ; (/) the manner in which any document required to be published by this A c t shall be published ; and (g) the procedure to be follow ed by liquidators under this A ct. Appeals. P enalty fo r n o n - cotnpliance w ith Act. Penalty for falsifying documents. Cognizance of offence*.

8 94 Provident Insurance Societies. (3) The power to make rules conferred by this A c t is subject to the condition o f the rules being made after previous publication. (4) A ll rules made under this A c t shall be published in the Gazette, and on such publication shall have effect as i f enacted therein. Saving of existing policies. Pow er of President to exempt from provisions of the Act, Miscellaneous. 25. No policy effected before the 18th M arch, 1912 l, w ith a Provident Insurance Society shall be deemed to be void by reason only that the insurance is not authorized by this A ct. 26. The President o f the U nion may, by notification in the Gazette, and subject to such conditions and restrictions as he thinks fit, exempt any Provident Insurance Society or class o f Provident Insurance Societies from all or any of the provisions o f this Act.