This is an act that provides nationalization to the insurance sector of India and transformed its geometry and way of dealing with the market.
InIndiawhen people get financial freedom and increase their income, the living standard of the Indian people also started to increase but at that time it was very necessary to give such facilities as insurance for their security. And many agencies started to provide the facility of security on the basis of their requirement.
During the initial days, the demand was only for the life of a person but later on, it goes for many other purposes also like nowadays insurance of car, bike, home, mobile phones, etc.
- Section 1 of the act ask about the name of the act and the establishment date of the act as 1956
- Section 2 of the act defines the definition of the terms and the extent of the act in India.
- Section 3 of the Act speaks about the definition of the term ‘custodian’ define as is the person who takes control over the management of any controlled business.
- And the definition of insure means the person who ensures the life of others in the form of a written contract. And it is defined insection 5 of the insurance act 1938.
