PART II
COMMISSION AND REBATES AND LICENSING OF AGENTS
Prohibition of payment by way of commission or otherwise for procuring business40. 54[(1) No person shall pay or contract to pay any remuneration or reward whether by way of commission or otherwise for soliciting or procuring insurance business in Bangladesh to any person except an insurance agent or an employer of agent.]
(1A) [Omitted by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973).]
55[(1B) No person shall pay and no insurance agent shall receive any renewal commission in respect of a life insurance business after the expiry of licence during the validity of which such business was procured by the insurance agent unless such licence has been renewed under sub-section (4) of section 42.
Explanation.- For the purposes of this sub-section all the life insurance business to the credit of an insurance agent as at the date of the expiry of his licence, shall be deemed to have been procured by the insurance agent while holding the licence valid on the said date.]
(2) No insurance agent shall be paid or contract to be paid by way of commission or as remuneration 56[in any form an amount exceeding, in the case of life insurance business,] forty per cent of the first year’s premium payable on any policy or policies effected through him and five per cent of a renewal premium payable on such a policy, 57[or, in the case of business of any other class, fifteen per cent] of the premium:
Provided that insurers, in respect of 58[life insurance policy only,] may pay, during the first ten years of their business, to their insurance agents fifty-five per cent of the first year’s premium payable on any policy or policies effected through them and six per cent of the renewal premiums payable on such policies.
59[* * *]
60[(2A) Save as hereinafter provided, no insurance agent shall be paid or contract to be paid by way of commission or as remuneration in any form any amount in respect of any policy not effected through him:
Provided that where a policy of life insurance has lapsed, and it cannot, under the terms and conditions applicable to it be revived without further medical examination of the person whose life was insured thereby, an insurer, after giving by notice in writing, to the insurance agent through whom the policy was effected if such agent continues to be an agent of the insurer, an opportunity to effect the revival of the policy within a time specified in the notice, being not less than one month from the date of the receipt by him of the notice, may pay to another insurance agent who effects the revival of the policy an amount calculated at a rate not exceeding the rate of commission at which the agent through whom the policy was effected would have been paid had the policy not lapsed, on the sum payable on revival of the policy on account of arrear premiums (excluding any interest on such arrear premiums) and also on the subsequent renewal premiums payable on the policy.]
(3) Nothing in this section shall prevent the payment under any contract existing prior to the 27th day of January, 1937, of gratuities or renewal commission to any person, whether an insurance agent within the meaning of this Act or not, or to his representatives after his decease in respect of insurance business effected through him before the said date.
Limitation of expenditure on commission61[40A. (1) No person shall pay or contract to pay an insurance agent, and no insurance agent shall receive or contract to receive by way of commission or remuneration in any form in respect of any policy of life insurance issued in Bangladesh by an insurer after the commencement of the Insurance (Amendment) Ordinance, 1970, and effected through an insurance agent, an amount exceeding such maximum percentage or below such minimum percentage as may be prescribed: Provided that in prescribing such percentages regard shall be had to –
(a) the type of the life insurance business;
(b) the term of the policy;
(c) the amount of business procured by the agent during a calendar year;
(d) the number of policies lapsing from out of the business procured by the agent;
(e) the age of the insurer; and
(f) whether or not the agent has successfully completed a course of training.]
62[(2) No person shall pay or contract to pay to an insurance agent, and no insurance agent shall receive or contract to receive by way of commission or remuneration in any form, in respect of any policy of general insurance issued in Bangladesh by an insurer and effected through an insurance agent an amount exceeding-
(a) where the policy relates to fire or miscellaneous insurance, fifteen per cent of the premium payable on the policy; and
(b) where the policy relates to marine insurance, ten per cent of the premium payable on the policy:
Provided that a further amount not exceeding five per cent of the premium payable on the policy may be paid to an insurance agent who procures a yearly business yielding a premium income of not less than thirty thousand Taka and satisfies such other conditions as may be prescribed.
(3) No person shall pay or contract to pay to any employer of agents and no employer of agents shall receive or contract to receive, by way of commission, over-riding commission or any other remuneration in any form, in respect of any policy of general insurance issued by an insurer in Bangladesh, and effected through an employer of agents, an amount exceeding-
(a) in the case referred to in clause (a) of sub-section (2), fifteen per cent of the premium payable on the policy; and
(b) in the case referred to in clause (b) of sub-section (2), ten per cent of the premium payable on the policy,
inclusive of any commission payable to any insurance agent in respect of the said policy:
Provided that a further amount not exceeding five per cent of the premium payable on a policy may be paid to an employer of agents who procures a yearly business yielding a premium income of not less than one lakh Taka and satisfies such other conditions as may be prescribed:
Provided further that the Government may, in such circumstances and to such extent and for such period as may be specified, authorise the payment of commission or remuneration exceeding the limits specified in this sub-section to an employer of agents acting on behalf of an insurer incorporated or domiciled elsewhere than in Bangladesh if such employer of agents carries out and has continuously carried out in his own office duties on behalf of the insurer which would otherwise have been performed by the insurer.]
63[(3A) No person shall pay or contract to pay any employer of agents, and no employer of agents shall receive or contract to receive, by way of commission, over-riding commission or any other remuneration in any form, in respect of any life insurance policy issued by an insurer in Bangladesh after the commencement of the Insurance (Amendment) Ordinance, 1970, and effected through an employer of agents, an amount exceeding such maximum percentage or below such minimum percentage as may be prescribed:
Provided that in prescribing such percentages regard shall be had to-
(a) the type of the life insurance business;
(b) the term of the policy;
(c) the amount of business procured by the employer of agents during a calendar year;
(d) the number of policies lapsing from out of the business procured by the employer of agents;
(e) the age of the insurer;
(f) the number of successful insurance agents selected by him in a calendar year;
(g) the number of employers of agents intervening between the insurer and the insurance agents; and
(h) whether or not the employer of agents has undergone successfully a course of training.
(3B) No insurer shall pay over-riding commission to more than two employers of agents intervening between him and the insurance agents.
(3C) Where an employer of agents also works as an agent, the insurer may, subject to any rules made in this behalf, pay over-riding commission to him in respect of business procured by him as an insurance agent:
Provided that the insurer shall not pay over-riding commission to an employer of agents on the business procured by him as an insurance agent if such business exceeds such percentages as may be prescribed.]
(4) No insurer shall pay or contract to pay outside Bangladesh to any person any commission in any form in respect of the insurance business transacted by such person in Bangladesh and no insurer shall receive or contract to receive outside Bangladesh from any person any commission in any form in respect of any business reinsured abroad.
(5) Without prejudice to the provisions of section 102 in respect of a contravention of any of the provisions of the preceding sub-section by an insurer, an insurance agent or employer of agents who contravenes any of the provisions of sub-sections (1) 64[, (2), (3)] or (4) shall be punishable with fine which may extend to one thousand Taka.
(6) An insurer incorporated outside Bangladesh who receives or contracts to receive any commission in respect of any business transacted in Bangladesh and reinsured abroad shall not be deemed to have contravened the provisions of sub-section (4) if all amounts received by him outside Bangladesh in this respect have been fully credited to the Bangladesh revenue account.
Limitation of expenses of management in life insurance business40B. (1) No insurer shall, in respect of life insurance business transacted by him in Bangladesh, spend as expenses of management in any calendar year an amount in excess of the prescribed limits and in prescribing any such limits regard shall be had to the size and age of the insurer and the provision generally made for expenses of management in the premium rates of insurers:
Provided that the Chief Controller of Insurance may, on an application made to him in this behalf, condone the contravention of this sub-section by an insurer who has, on reasonable grounds, spent as such expenses an amount in excess of such limits.
(2) Every insurer transacting life insurance business in Bangladesh shall incorporate in the revenue account-
(a) a certificate signed by the chairman and two directors and by the principal officer of the insurer, and an auditor’s certificate, certifying that all expenses of management in respect of life insurance business transacted by the insurer in Bangladesh have been fully debited in the revenue account as expenses; and
(b) if the insurer is carrying on any other class of insurance business in addition to life insurance business, an auditor’s certificate certifying that all charges incurred in respect of his life insurance business and in respect of his business other than life insurance business have been fully debited in the respective revenue accounts.
Explanation.- In this section “expenses of management” means all charges wherever incurred whether directly or indirectly, and includes:-
(i) commission payments of all kinds;
(ii) a proper share of expenses capitalised; and
(iii) in the case of an insurer having his principal place of business outside Bangladesh, a proper share of head office expenses which shall not exceed such percentage of the total net premiums, that is to say, gross premiums written direct in Bangladesh plus reinsurances accepted minus reinsurances ceded during the year in respect of life insurance business transacted by him in Bangladesh as may be prescribed, but does not in the case of an insurer having his principal place of business in Bangladesh include any share of head office expenses in respect of life insurance business transacted by him outside Bangladesh.
Limitation of expenses of management in general insurance business40C. (1) No insurer shall, in respect of any class of general insurance business transacted by him in Bangladesh, spend in any calendar year as expenses of management 65[, including commission or remuneration for procuring business], an amount in excess of the prescribed limits and in prescribing any such limits regard shall be had to the size and age of the insurer:
Provided that the Chief Controller of Insurance may, on an application made to him in this behalf, condone the contravention of this sub-section by an insurer who has, on reasonable grounds, spent as such expenses an amount in excess of such limits.
(2) Every insurer as aforesaid shall incorporate in the revenue account a certificate signed by the chairman, two directors and the principal officer of the insurer, and an auditor’s certificate, certifying that all expenses of management wherever incurred, whether directly or indirectly, in respect of the business referred to in this section have been fully debited in the revenue account as expenses.
Explanation.- In this section,-
(a) “expenses of management” means all charges, wherever incurred whether directly or indirectly [including commission payments of all kinds] and, in the case of an insurer having his principal place of business outside Bangladesh, a proper share of head office expenses which shall not exceed such percentage of the total net premiums, that is to say, gross premiums written direct in Bangladesh plus reinsurances accepted minus reinsurances ceded during the year as may be prescribed; and
(b) “insurance business transacted in Bangladesh” includes insurance business, wherever effected, relating to any property situated in Bangladesh or to any vessel or aircraft registered in Bangladesh.
Remuneration40D. For the purposes of sections 32A, 40, 40A, 40B and 40C, “remuneration” shall be deemed to include travelling and entertainment allowances and all other payments or disbursements of any kind or form.]
Prohibition of rebates41. (1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in Bangladesh any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer:
Provided that acceptance by an insurance agent of Commission in connection with a policy of life insurance taken out by himself on his own life shall not be deemed to be acceptance of a rebate of premium within the meaning of this sub-section if at the time of such acceptance the insurance agent satisfies the prescribed conditions establishing that he is a bona fide insurance agent employed by the insurer.
(2) Any person making default in complying with the provisions of this section shall be punishable with fine which may extend to five hundred Taka.
Licensing of insurance agents42. (1) Any person who possesses such qualifications as may be prescribed in this behalf and who makes an application in the prescribed manner to the Chief Controller of Insurance accompanied by the prescribed fee, which shall not be more than 66[two hundred] Taka may be granted a temporary licence for the purpose of soliciting or procuring life insurance business.
(2) A temporary licence issued under sub-section (1) shall remain in force for a period of two years.
(3) On his making an application to the Chief Controller of Insurance in the prescribed manner accompanied by the prescribed fee, the holder of a temporary licence who has passed such examination as may be prescribed, and any other person who has passed the examination, shall be granted a renewable licence.
(4) A renewable licence shall remain in force for a period of three years from the date of issue but shall be renewed for a further period of three years at any one time if-
(i) an application in the prescribed form for renewal of the licence reaches the Chief Controller at least one month before the date on which the licence ceases to remain in force;
(ii) the applicant has paid the prescribed renewal fee which shall not be more than 67[three hundred] Taka; and
(iii) except in such circumstances as may be prescribed, the applicant has procured during the previous three years such volume of business, and from out of the business procured by him the number of policies lapsing has been below such percentage, as may be prescribed.
(5) A person to whom a temporary licence is granted and who is unable to pass the examination prescribed under sub-section (3) shall not be entitled to apply for another temporary licence:
Provided that the Chief Controller may grant a fresh temporary licence to a person who has previously held a temporary licence if such person has procured such volume of business, and from out of the business procured by whom the number of policies lapsing is below such percentage as may be prescribed.
68[(6) The Chief Controller of Insurance or an officer authorised by him in this behalf shall, in the prescribed manner and on payment of prescribed fee, which shall not be more than 69[two hundred Taka], issue to any individual making an application in the prescribed manner a licence to act as an insurance agent for the purpose of soliciting or procuring general insurance business.
(7) A licence issued under sub-section (6) shall remain in force for a period of one year from the date of issue but shall be renewed for a period of three years at any one time if :-
(i) an application in the prescribed form for renewal of the licence reaches the issuing authority at least one month before the date on which the licence ceases to remain in force;
(ii) the applicant has paid the prescribed renewal fee which shall not be more than three hundred Taka; and
(iii) the applicant has procured during the previous three years general insurance business yielding at an average a premium income of not less than one lakh Taka.
(8) No fresh licence for general insurance business shall be issued to an insurance agent whose licence has not been renewed under sub-section (7), until after one year from the date on which his last licence ceased to remain in force.]
(9) Notwithstanding the provisions of clause (i) of sub-section (4) 70[or clause (i) of sub-section (7)], an application for the renewal of a licence which does not reach the issuing authority at least one month before the date on which the licence ceases to remain in force shall be entertained at any time before that date if the applicant has paid an additional fee of a prescribed amount not exceeding five Taka by way of penalty:
Provided that the Chief Controller of Insurance may, if satisfied that undue hardship would be caused otherwise, entertain an application received after the licence ceases to remain in force on payment by the applicant of a penalty of a prescribed amount not exceeding thirty Taka.
71[(10) For the purpose of sections 40 and 40A, no insurance agent who is licensed to act as an insurance agent for life insurance business be deemed to be an insurance agent for general insurance business and no insurance agent who is licensed to act as an insurance agent for general insurance business shall be deemed to be an insurance agent for life insurance business.]
(11) A licence issued under this section shall entitle the holder thereof to act as an insurance agent for any insurer.
(12) No person shall apply for temporary or renewable licence or apply for the renewal of a licence in respect of life insurance business 72[or a licence in respect of general insurance business] if:-
(i) he is a minor;
(ii) he has been found to be of unsound mind by a Court of competent jurisdiction;
(iii) he has been found guilty of criminal misappropriation or criminal breach of trust or cheating or forgery or an abetment of or attempt to commit any such offence by a Court of competent jurisdiction:
Provided that where, in the case of a person convicted of any such offence, five years have elapsed since the date of the sentence or, where the sentence was of imprisonment with or without fine, from the date of his release, the Chief Controller of Insurance shall ordinarily declare in respect of such person that his conviction shall cease to debar him from making such an application.
(iv) in the course of any judicial proceeding relating to any policy of insurance or the winding up of an insurance company or in the course of an investigation of the affairs of an insurer, it has been found that he has been guilty of or has knowingly participated in or connived at any fraud, dishonesty or misrepresentation against an insurer or an insured.
(13) If it be found that an insurance agent is debarred by sub-section (12) from making an application, without prejudice to any other penalty to which he may be liable, the Chief Controller of Insurance shall, and if the agent has knowingly contravened any provision of this Act, or any rule or order made thereunder may, cancel a licence issued to the agent under this section.
(14) In the event of the cancellation of a licence under sub-section (13), the Chief Controller of Insurance may refuse to grant a fresh licence to the insurance agent for such period as the Chief Controller deems fit.
(15) The authority which issued any licence under this section may issue a duplicate licence to replace a licence lost, destroyed or mutilated on payment of the prescribed fee which shall not be more than one Taka.
(16) The Chief Controller shall if he refuses any licence or the renewal of any licence under this section, communicate his decision in writing to the applicant for the licence or the renewal within six weeks of the date of the application.]
Certificates to employers of agents73[42A. (1) Any individual who has-
(a) worked as a life insurance agent for such period as may be prescribed;
(b) procured such volume of life insurance as may be prescribed of which such percentage as may be prescribed remains in force one month prior to the date of application referred to in clause (c); and
(c) applied in the prescribed manner to the Chief Controller of Insurance and has paid the prescribed fee which shall not be more than 74[five] hundred Taka,
may be granted a temporary certificate to act as an employer of agents on behalf of an insurer for the purpose of procuring life insurance business.
(2) A temporary certificate issued under sub-section (1) shall remain in force for a period of two years.
(3) On his making to the Chief Controller of Insurance in the prescribed manner an application accompanied by the prescribed fee which shall not be more than 75[seven hundred and fifty] Taka, the holder of a temporary certificate who has passed such examination as may be prescribed, and any other person who is qualified to be granted a temporary certificate and has passed the examination, shall be granted a renewable certificate.
(4) A renewable certificate shall remain in force for a period of three years from the date of issue but shall be renewed for a further period of three years at any one time if-
(i) an application in the prescribed form for renewal of the certificate reaches the issuing authority at least one month before the date on which the certificate ceases to remain in force;
(ii) the applicant has paid the prescribed renewal fee which shall not be more than 76[seven hundred and fifty] Taka;
(iii) except in such circumstances as may be prescribed, the applicant has complied with such provisions relating to recruitment of agents who have qualified for a renewable certificate and produced such volume of business and from out of the business procured by whom the number of policies lapsing has been below such percentage as may be prescribed.
(5) An individual to whom a temporary certificate has been granted and who is unable to pass the examination prescribed under sub-section (3) shall not be entitled to apply for another temporary certificate:
Provided that the Chief Controller of Insurance may grant a fresh temporary certificate to an individual who has previously held a temporary certificate if such individual has introduced such number of agents who have qualified for a renewable licence and produced such volume of business and from out of the business procured by whom the number of policies lapsing has been below such percentage as may be prescribed.
(6) Notwithstanding the provisions of clause (i) of sub-section (4), an application for the renewal of a renewable certificate which does not reach the issuing authority at least one month from the date on which the certificate ceases to remain in force shall be entertained at any time before that date if the applicant has paid an additional fee of a prescribed amount not exceeding 77[two hundred and fifty] Taka by way of penalty:
Provided that the Chief Controller of Insurance may, if satisfied that undue hardship would be caused otherwise, entertain an application received after the certificate ceases to remain in force on payment by the application of a penalty of a prescribed amount not exceeding 78[seven hundred and fifty] Taka.
79[(7) The Chief Controller of Insurance or an officer authorised by him in this behalf shall, in the prescribed manner and on payment of the prescribed fee which shall not be more than five hundred Taka, issue to any person making an application in the prescribed manner a certificate to act as an employer of agents on behalf of an insurer for the purposes of procuring general insurance business.
(8) A certificate issued under sub-section (7) shall remain in force for a period of one year from the date of issue, but shall, on application made in this behalf, be renewed from year to year if-
(i) an application in the prescribed form for renewal of the certificate reaches the issuing authority before the date on which the certificate ceases to remain in force;
(ii) the applicant has paid the prescribed renewal fee which shall not be more than five hundred Taka; and
(iii) the applicant has procured or caused to be procured such minimum amount of general insurance business and has complied with such conditions as may be prescribed in this behalf:
Provided that an application for the renewal of a certificate which does not reach the issuing authority before the certificate ceases to remain in force shall be entertained if the applicant has submitted an application within twelve months from the date the certificate ceases to remain in force and has paid an additional fee of the prescribed amount not exceeding five hundred Taka by way of penalty.
(9) No fresh certificate shall be issued to an employer of agents whose certificate has not been renewed under sub-section (8), until after one year from the date on which his last certificate ceased to remain in force.]
(10) No person shall apply for any certificate or for the renewal thereof if-
(i) he is a minor;
(ii) he has been found to be of unsound mind by a Court of competent jurisdiction;
(iii) he has been found guilty of criminal misappropriation or criminal breach of trust or cheating or forgery or an abetment of or attempt to commit any such offence by a Court of competent jurisdiction:
Provided that where, in the case of a person convicted of any such offence, five years have elapsed since date of the sentence or, where the sentence was of imprisonment with or without fine, from the date of his release, the Chief Controller of Insurance shall ordinarily declare in respect of such person that his conviction shall cease to debar him from making such an application;
(iv) in the course of any judicial proceeding relating to any policy of insurance or the winding up of an insurance company or in the course of an investigation of the affairs of an insurer, it has been found that he has been guilty of or has knowingly participated in or connived at any fraud, dishonesty or misrepresentation against an insurer or an insured.
(11) Where it is found that an employer of agents being an individual is, or being a company or firm contains a director or partner who is, debarred by sub-section (10) from making an application, without prejudice to any other penalty to which he may be liable, the Chief Controller of Insurance shall, and where an employer of agents has contravened any of the provisions of this Act or any rule or order made thereunder may, cancel a certificate issued to the employer of agents under this section.
(12) In the event of the cancellation of a certificate under sub-section (11), the Chief Controller of Insurance may refuse to grant a fresh certificate to the employer of agents for such period as the Chief Controller may deem fit.
(13) The authority which issued any certificate under this section may issue a duplicate certificate to replace a certificate lost, destroyed or mutilated on payment of the prescribed fee, which shall not be more than five Taka.
(14) A certificate issued under this section shall entitle the holder thereof to act as an employer of agents for any insurer.
(15) The Chief Controller shall, if he refuses a certificate or the renewal of a certificate under this section, communicate his decision in writing to the applicant for the certificate or renewal within six weeks from the date of the application.]
Powers to ensure compliance with certain provisions80[42B. For the purposes of ensuring compliance with the provisions of sections 40, 40A, 40B, 40C, 42, 42A, 44A and 44B the Chief Controller may, by notice,-
(a) require from an insurer, or an employer of agents or an insurance agent, or an insurance surveyor such information certified, if so required by an auditor or an actuary, as he may consider necessary;
(b) issue such directions to the insurer as he may deem necessary;
(c) require an insurer or an employer of agents or an insurance agent or an insurance surveyor to submit for his examination at the principal place of business of the insurer in Bangladesh, any book of account, register or other document or to supply any statement which may be specified in the notice.]
Register of insurance agents43. (1) Every insurer and every person who acting on behalf of an insurer employs insurance agents shall maintain a register showing the name and address of every insurance agent appointed by him and the date on which his appointment began and the date, if any, on which his appointment ceased.
(2) Any individual not holding a licence issued under section 42 who acts as an insurance agent shall be punishable with fine which may extend to fifty Taka, and any insurer who, or any person acting on behalf of an insurer who, appoints as an insurance agent any individual not so licensed, or transacts any insurance business in Bangladesh through any such individual, shall be punishable with fine which may extend to one hundred Taka.
(3) The provisions of sub-section (2) shall not take effect until the expiry of six months from the commencement of this Act.
Provisions of contracts with agents81[43A. Every contract made by an insurer with an insurance agent or employer of agents shall contain such provisions as may be prescribed and every such contract in force immediately before the commencement of the Insurance (Amendment) Ordinance, 1970, shall be deemed to contain the said provisions or provisions to the same effect.]
Prohibition of cessation of payment of commission44. (1) Notwithstanding anything to the contrary contained in any contract between any person and any insurance agent providing for the forfeiture or stoppage of payment of renewal commission to such insurance agent, no such person shall, in respect of life insurance business transacted in Bangladesh, refuse payment to an insurance agent of commission due to him on renewal premium under the agreement by reason only of the termination of his agreement, except for fraud:
Provided that-
(a) such agent ceases to act for the insurer concerned after the Chief Controller of Insurance is satisfied and has conveyed the fact to the insurer and the agent that the circumstances in which the said insurer is placed are such as to justify the agent’s ceasing to act for him; or
(b) such agent has served the insurer continually and exclusively in respect of life business for not less than three years and has earned a minimum renewal commission of three hundred Taka during the twelve months preceding the date of his ceasing to act as such agent for the insurer.
(2) Any commission payable to an insurance agent whether under the provisions of sub-section (1) or otherwise shall, notwithstanding the death of the agent and notwithstanding the provisions in this Act regarding the holding of an insurance agent’s licence continue to be payable to his heirs for so long as such commission would have been payable had such insurance agent been alive or in one or more lump sums commuted under sub-section (4):
Provided that no commission on renewal premiums shall be paid under this sub-section if the total amount of commission on renewal premiums earned by the insurance agent during the twelve months preceding the date of his death was less than three hundred Taka.
(3) For the purposes of sub-section (2) an insurance agent may nominate the person or persons to whom the commission due to him shall be paid in the event of his death:
Provided that any such nomination to be effectual shall be communicated to the insurer and registered by him in writing and any such nomination may at any time before the death of the insurance agent, be cancelled or changed by him, but unless a notice in writing of any such cancellation or change has been delivered to the insurer, the insurer shall not be liable for any payment of the commission made bona fide by him to a nominee registered with the insurer:
Provided further that the insurer shall furnish to the insurance agent a written acknowledgment of having registered nomination or cancellation or change thereof :
Provided also that where the nominee is a minor, it shall be lawful for the insurance agent to appoint any person to receive the commission in the event of his death during the minority of the nominee.
(4) If the commission payable to any heir or nominee of a deceased insurance agent under the provisions of sub-section (2) is less than three hundred Taka a year, the insurer shall and in any other case the insurer may, with the consent of the heir or the nominee of the deceased insurance agent, commute such renewal commission and pay the amount or amounts mutually agreed to in lump sum or sums.
(5) An insurer may recover out of the commission payable under sub-section (2) any sums owing to the insurer by the insurance agent at the date of his death.
(6) In this section, reference to “insurance agent” or “agent” shall be construed as including reference to “employer of agent”, and reference to “commission” shall be construed as including reference to “over-riding commission”.
Insurance surveyors to hold certificates82[44A. (1) No person other than an insurance surveyor holding an appropriate certificate under this section shall, after the expiry of six months from the commencement of the Insurance (Amendment) Act, 1958, undertake in Bangladesh the surveying assessment or adjustment of any loss in respect of general insurance business and no insurer shall pay any claim in respect of general insurance business transacted by him in Bangladesh unless the loss has been surveyed, assessed or adjusted, as the case may be, by an insurance surveyor holding an appropriate certificate under this section:
Provided that the provisions of this sub-section shall not apply to such persons and to such losses as may be prescribed.
(2) An application for a certificate under this section shall be made to the Chief Controller of Insurance in the prescribed manner and be accompanied by a prescribed fee which shall not be more than 83[two thousand Taka].
(3) The insurance surveyors may be classified into such classes or sub-classes as may be prescribed, and, if so classified, separate application shall be made and separate certificates issued in respect of each such class or sub-class.
(4) The Chief Controller of Insurance or any person authorised by him in this behalf may, on receipt of an application under this section, call for such information or explanation as he may deem fit, or ask the applicant to appear before him in person, and on being satisfied that the applicant fulfils such requirements as may be prescribed and is fit to hold the certificate applied for, grant such certificate.
(5) An applicant who has been refused a certificate of any class or sub-class under sub-section (4) shall not be entitled to make a fresh application for a certificate of the same class or sub-class before the expiry of a period of one year from the date of such refusal.
(6) A certificate issued under this section shall remain in force for a period of one year only from the date of issue, but shall, on application made in this behalf, be renewed from year to year, if –
(i) an application in the prescribed form for renewal of the certificate reaches the issuing authority before the certificate ceases to remain in force;
(ii) the applicant has paid the prescribed fee which shall not be more than 84[one thousand Taka];
(iii) the applicant fulfils the requirements prescribed under sub-section (4); and
(iv) in the case of an individual, the applicant, or, in the case of a company or firm, any of its directors or partners, does not suffer from any of the disqualifications mentioned in clauses (b), (c), or (d) of sub-section (4) of section 42:
Provided that an application for renewal of the certificate which does not reach the issuing authority before the certificate ceases to remain in force shall be entertained if the applicant has submitted an application within twelve months from the date the certificate cases to remain in force and has paid an additional fee of the prescribed amount not exceeding fifteen Taka by way of penalty.
85[(6A) The Chief Controller shall, if he refuses a certificate or the renewal of a certificate under this section, communicate his decision in writing to the applicant for such certificate or renewal within three months from the date of the application.]
(7) Where it is found that an insurance surveyor being an individual is, or being a company or firm contains a director or partner who is, suffering from any of the disqualifications mentioned in sub-section (4) of section 42, without prejudice to any other penalty to which he may be liable, the Chief Controller shall, and where it is proved to the satisfaction of the Chief Controller that the insurance surveyor has-
(i) given a false report; or
(ii) grossly over-assessed or under-assessed any loss; or
(iii) made an adjustment of loss in a grossly unjust manner;
the Chief Controller may cancel the certificate or certificates held by that insurance surveyor:
Provided that in the event of cancellation of a certificate under the discretionary powers of the Chief Controller under this sub-section the Government may, upon an application made to it in this behalf, call for a report from the Chief Controller, and, after considering such report and hearing the applicant, give such direction to the Chief Controller as it may deem fit.
(8) The authority which issued any certificate under this section may issue a duplicate certificate to replace a certificate lost, destroyed or mutilated on payment of the prescribed fee, which shall not be more than five Taka.
(9) Any person who acts in contravention of this section shall be punishable with fine which may extend to one thousand Taka and where the person contravening is a company or a firm, then, without prejudice to any other proceedings which may be taken against the company or firm, every director, manager, secretary or any other officer of the company and every partner of the firm who is knowingly a party to such contravention shall be punishable with fine which may extend to one thousand Taka.
Second survey44B. (1) If in any case the Chief Controller of Insurance has reason to believe that an insurance surveyor has given a false report or has grossly over-assessed or under-assessed a loss or has made an adjustment of loss in a grossly unjust manner, he may direct the insurer to arrange for another survey of that loss through any other surveyor or surveyors approved by him.
(2) In the event of the second survey made under sub-section (1) the surveyor or surveyors shall forward one copy of the report to the Chief Controller who on considering such report and after giving an opportunity to the first surveyor to be heard, may cancel the certificate of the surveyor concerned in accordance with the provisions of sub-section (7) of section 44A.]