The Insurance Act, 1938

This 2024 Bare-Act edition of The Insurance Act, 1938 (Act 4 of 1938) compiles India’s core statute for regulating insurers and intermediaries with six key allied instruments—right up to the 2021 amendment that ushered in a 74 % FDI cap, fast-track licensing and IFR violations regime.

Inside this finance-yellow desk companion

• Principal Act—solvency margin, re-insurance cessions, asset-liability management, commission caps, corporate governance & IRDAI oversight, fully consolidated to 1-4-2021

• Insurance Rules 1959 (with 2020 valuation & solvency updates)

• Insurance Ombudsman Rules 2017—complaint formats, jurisdiction matrix & award enforcement timelines

• General Insurance Business (Nationalisation) Act 1972 (as amended 2021) for GIC/NIAs restructuring and IPO pathways

• Indian Insurance Companies (Foreign Investment) Rules 2015 reflecting 2021 74 % cap & “Indian control” tests

• Insurance Appellate Tribunal Rules 2016—appeal fees, filing check-list, e-hearing provisions

• Inquiry by Adjudicating Officer Rules 2016—step-wise procedure and penalty grids

• Margin call-outs: latest IRDAI circular numbers on sandbox, surety bonds, Bima Sugam & surrender value factors

On-hand utility

• Insurers craft board policies in line with s.27 investment norms and Rule 10 solvency triggers

• Brokers/advisors quote precise remuneration ceilings when drafting MoUs

• Ombudsman offices use ready extracts for maintainability rulings and award formats

• Finance-exam candidates (CA, CS, CMA, IRDAI licensing) revise the entire insurance law ecosystem from a single, ₹ 435 sewn-binding volume