Section 37A: Power of Authority to prepare Scheme of Amalgamation

Q: What does Section 37A of The Insurance Act, 1938 (TIA) deal with?

Section 37A TIA pertains to "Power of Authority to prepare Scheme of Amalgamation". It is part of the The Insurance Act, 1938, a legislation enacted by the Parliament of India. Section 37A of The Insurance Act, 1938 (TIA) governs power of Authority to prepare Scheme of Amalgamation. As verified on 22 May 2026.

Q: Is Section 37A TIA still in force?

Yes, Section 37A of the The Insurance Act, 1938 is currently in force across the Republic of India.

Q: What is धारा 37A TIA?

धारा 37A TIA is the Devanagari Hindi reference for Section 37A of the The Insurance Act, 1938. Section 37A of The Insurance Act, 1938 (TIA) governs power of Authority to prepare Scheme of Amalgamation. As verified on 22 May 2026.

Q: What is Dhara 37A TIA?

Dhara 37A TIA is the Roman Hindi reference for Section 37A of the The Insurance Act, 1938. "Dhara" means "Section" in Hindi. Section 37A of The Insurance Act, 1938 (TIA) governs power of Authority to prepare Scheme of Amalgamation. As verified on 22 May 2026.

Q: How to cite Section 37A of The Insurance Act, 1938?

Cite as: "Section 37A, The Insurance Act, 1938 (TIA)" in legal briefs. For academic writing, use the BlueBook format: The Insurance Act, 1938, 1938, § 37A (India).

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(1)

If the Authority is satisfied that—

(2)

The scheme aforesaid may contain provisions for all or any of the following matters, namely:—

(3)

(4)

The scheme shall thereafter be placed before the Central Government for its sanction and the Central Government may sanction the scheme without any modification or with such modifications as it may consider necessary, and the scheme as sanctioned by the Central Government shall come into force on such date as the Central Government may notify in this behalf in the Official Gazette:

Provided that different dates may be specified for different provisions of the scheme.

(4A)

Every policyholder or shareholder or member of each of the insurers, before amalgamation, shall have the same interest in, or rights against the insurer resulting from amalgamation as he had in the company of which he was originally a policyholder or shareholder or member:

Provided that where the interests or rights of any shareholder or member are less than his interest in, or rights against, the original insurer, he shall be entitled to compensation, which shall be assessed by the Authority in such manner as may be specified by the regulations.

(4B)

The compensation so assessed shall be paid to the shareholder or member by the insurance company resulting from such amalgamation.

(4C)

Any member or shareholder aggrieved by the assessment of compensation made by the Authority under sub-section (4A) may within thirty days from the publication of such assessment prefer an appeal to the Securities Appellate Tribunal.

(5)

The sanction accorded by the Central Government under sub-section (4) shall be conclusive evidence that all the requirements of this section relating to amalgamation have been complied with and a copy of the sanctioned scheme certified in writing by an officer of the Central Government to be a true copy thereof shall, in all legal proceedings (whether in appeal or otherwise) be admitted as evidence to the same extent as the original scheme.

(6)

The Authority may, in like manner, add to amend or vary any scheme made under this section.

(7)

On and from the date of the coming into operation of the scheme or any provision thereof, the scheme or such provision shall be binding on the insurer or, as the case may be, on the transferee insurer and any other insurer concerned in the amalgamation and also on all the shareholders, policy-holders and other creditors and employees of each of those insurers and of transferee insurer, and on any other person having any right or liability in relation to any of those insurers or the transferee insurer.

(8)

On and from such date as may be specified by the Central Government in this behalf, the properties and assets of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to, and vest in, and the liabilities of the insurer shall, by virtue of and to the extent provided in the scheme, stand transferred to and become the liabilities of the transferee insurer.

(9)

If any difficulty arises in giving effect to the provisions of the scheme, the Central Government may by order do anything not inconsistent with such provisions which appears to it necessary or expedient for the purpose of removing the difficulty.

(10)

Copies of every scheme made under this section and of every order made under sub-section (9) shall be laid before each House of Parliament, as soon as may be, after the scheme has been sanctioned by the Central Government, or as the case may be, the order has been made.

(11)

Nothing in this section shall be deemed to prevent the amalgamation with an insurer by a single scheme of several insurers.

(12)

The provisions of this section and of any scheme made under it shall have effect notwithstanding anything to the contrary contained in any other provisions of this Act or in any other law or any agreement, award or other instrument for the time being in force.

(13)

The provisions of section 37 shall not apply to an amalgamation given effect to under the provisions of this section.