(1)

Notwithstanding anything to the contrary contained in the Indian Companies Act, 1913 ( 7 of 1913 ), or in the articles of association of the insurer, if a company, or in any contract or agreement, no insurer shall after expiry of one year from the commencement of the Insurance (Amendment) Act, 1950 ( 47 of 1950 ), —

(a) be directed or managed by, or employ as manager or officer,

(b) be directed or managed by, or employ as manager or officer or in any capacity, any person whose remuneration or any part thereof takes the form of commission or bonus or a share in the valuation surplus in respect of the life insurance business of the insurer, or

(c) be directed or managed by, or employ as manager or officer or in any capacity, any person whose remuneration or any part thereof takes the form of commission or bonus in respect of the general insurance business of the insurer:

(i) the payment of commission to an insurance agent, in respect of insurance business procured by or through him;

(iv) the employment of any individual in a clerical or other subordinate capacity who, as an insurance agent, receives commission in respect of insurance business procured by hi m;

(v) the employment as an officer of any individual who receives renewal commission in respect of life insurance business procured by hi m in hi s capacity as an insurance agent or as an employer of agents before such employment, or before the commencement of the Insurance (Amendment) Act, 1950 ( 47 of 1950 ), whichever is later;

(vi) the payment of a share in the profits of general insurance business;

(vii) the payment of bonus in any year on a uniform basis to all salaried employees or any class of them by way of additional remuneration

(2)

Notwithstanding anything to the contrary contained in the Indian Companies Act, 1913 ( 7 of 1913 ), or in the articles of association of the insurer, being a company, or in any contract or agreement, no manager, managing director or any other person concerned in the management of an insurer's business shall be entitled to nominate a successor to hi s office, and no person so nominated, whether before or after the commencement of the Insurance (Amendment) Act, 1950 ( 47 of 1950 ), shall be entitled to hold or to continue in such office.

(3)

If in the case of any insurance company provision is made by the articles of association of the company or by an agreement entered into between any person and the company for empowering a director or manager or other officer of the company to assign hi s office to any other person, any assignment of office made in pursuance of the said provision, shall, notwithstanding anything to the contrary contained in the said provisionor in any other law for the time being in force be void.

(4)

No person shall have any right, whether in contract or otherwise, to any compensation for any loss incurred by reason of the operation of any provision of this section.