General Insurance Business (Nationalisation) Act, 1972

Act No. 57 of 1972 In force from 20-09-1972 Ministry of Finance 49 sections

An Act to provide for the acquisition and transfer of shares of Indian insurance companies and undertakings of other existing insurers in order to serve better the needs of the economy by securing the development of general insurance business in the best interests of the community and to ensure that the operation of the economic system does not result in the concentration of wealth to the common detriment, for the regulation and control of such business and for matters connected therewith or incidental thereto.

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Chapter I: Preliminary

• 1 Short title
• 2 Declaration as to the policy of the State
• 3 Definitions

Chapter II: Transfer to Public Ownership of General Insurance Business

• 4 Transfer of shares of Indian insurance companies
• 5 Transfer of undertakings of other existing insurers
• 6 Effect of transfer of undertakings
• 7 Transfer of service of existing employees in certain cases
• 8 Provident, superannuation, welfare and other funds

Chapter III: General Insurance Corporation of India

• 9 Formation of General Insurance Corporation of India 1 judgment
• 10 Transfer to Corporation of shares vested in Central Government
• 10A Transfer to Central Government of shares vested in Corporation
• 10B Enhancement of equity capital of General Insurance companies

Chapter IV: Amounts to Be Paid for Acquisitions

• 11 Amounts to be paid for transfer and vesting of shares or undertakings
• 12 Disbursement of amounts by Corporation
• 13 Mode of payment
• 14 Amount payable to shareholders may be paid to named persons instead in certain cases
• 15 Payment into court in case of rival claims

Chapter V: Scheme for Reorganisation of General Insurance Business

• 16 Schemes for mergers of companies, etc 2 judgments
• 17 Laying of schemes and notifications before Parliament

Chapter VA: Terms and Conditions of Service of Officers and Other Employees

• 17A Power of Central Government to regulate the terms and conditions of service of officers and other employees 4 judgments

Chapter VI: Functions of Corporation and Acquiring Companies and Their Management

• 18 Functions of Corporation
• 19 Functions of acquiring companies
• 20 Balance of profit how to be utilised
• 21 Interim provisions for management of Indian insurance companies
• 22 Power of Central Government to transfer employees
• 23 Power of Central Government to issue directions

Chapter VII: Miscellaneous

• 24 Acquiring companies to have the exclusive privilege of carrying on general insurance business
• 24A Exclusive privilege of Corporation and acquiring companies to cease
• 24B Cessation of application of Act
• 25 Omitted
• 26 Acquiring companies and income-tax
• 27 Power to reduce amounts of insurance in certain eases
• 28 Right of acquiring company to seek relief in respect of certain transactions
• 29 Duty to deliver possession of property and documents relating thereto
• 30 Penalty for withholding property, etc
• 30A Adjudication of penalties
• 31 Officers and employees of Corporation or of acquiring companies to be public servants
• 31A Liability of director of specified insurer
• 32 Indemnity
• 33 Dissolution of Corporation and acquiring companies
• 34 Reference to existing insurer in other laws
• 35 Application of Insurance Act
• 35A Omitted
• 36 Exemptions
• 37 Vacancies, etc., not to invalidate proceedings
• 38 Protection of action taken in good faith
• 38A Powers of Insurance Regulatory and Development Authority of India not to apply to International Financial Services Centre
• 39 Power to make rules 1 judgment
• 40 Repealed

Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 15 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.