PRESIDENT'S
ASSENT TO THREE BILLS
The President has given his assent
to the General Insurance Business (Nationalization) Amendment
Bill, 2002, the Delhi Municipal Corporation (Validation of Electricity
Tax) Act and Other Laws (Repeal) Bill, 2002 and the Insurance
(Amendment) Bill, 2002. With this, these three Bills, which were
passed by the Parliament during its Monsoon Session ending August
12, 2002, have been notified in the Gazette of India as Act Nos.
40,41 and 42 respectively of the year 2002.
The General Insurance Business (Nationalization)
Amendment Act, 2002, which amends the General Insurance Business
(Nationalization) Amendment Act, 1972, seeks to delink the General
Insurance Corporation (GIC) from its four subsidiaries of the
National Insurance Company Limited, the New India Assurance Company
Limited, the Oriental Insurance Company Limited and the United
India Insurance Company Limited and provides the GIC to carry
on re-insurance business. This also provides that the delinked
four acquiring companies will do general insurance business. The
Central Government acquires the authority to increase or reduce
the authorized capital of GIC and four other Insurance Companies.
Besides, the GIC will cease to carry general insurance business
and the four acquiring insurance companies will carry on general
insurance business. The Act will come into force on a date to
be notified by the Ministry of Finance in the Gazette of India.
The Delhi Municipal Corporation (Validation
of Electricity Tax) Act and Other Laws (Repeal) Act, 2002, seeks
to repeal the Delhi Municipal Corporation (Validation of Electricity
Tax) Act, 1966, the Goa, Daman and Diu (Opinion Poll) Act, 1966,
the Punjab Pre-emption (Chandigarh and Delhi Repeal) Act, 1989
and 19 other enactments which are in force in the Union Territory
of Chandigarh. This follows recommendations of P.C. Jain Commission
on Review of Administrative Laws and an internal committee in
the Union Ministry of Home Affairs having suggested repealing
of 22 Acts from the National Capital Territory of Delhi, Goa Daman
and Diu and the State of Punjab, which have been in force in the
Union Territory of Chandirarh and have outlived their relevance
now.
The Insurance (Amendment) Act, 2002,
seeks to amend the Insurance Act, 1938 to provide for Insurance
Cooperative Society registered sunder the Cooperative Societies
Act, 1912 and the Multi-State Cooperative Societies Act, 1984
having a minimum paid up capital, excluding the deposits under
Section 7, of Rs. 100 crore. It also enables Insurance Cooperative
Society to carry on any class of insurance business in India.
It also seeks to bring the insurance business subject to regulations
of the Insurance Regulatory Development Authority (IRDA). The
balance sheet format under the Act, besides, the First Schedule,
the Second Schedule, the Third Schedule and the Fourth Schedule
to the principal Act are omitted. Under the amended Act, every
Insurance Cooperative Society will be deemed to be an insurer.
The Act will be enforced on a date to be notified in the Gazette
of India by the Government in the Ministry of Finance.
