95AA. [ Security to be deposited by insurers. [Inserted by section 53, Act 56 of 1969, (w.e.f. 2.3.1970).]
(1)In addition to the deposits required to be made under section 7 of the Insurance Act, 1938, every insurer who is competent to issue a policy of insurance in accordance with this Chapter, shall deposit and keep deposited with the Reserve Bank of India or the State Bank of India, a sum of rupees thirty thousand as security for the due discharge of any liability covered by a policy of insurance issued in accordance with the provisions of this Chapter.(2)Any sum deposited under sub-section (1) shall be deemed to be part of the assets of the insurer but shall not be susceptible of any assignment or charge nor shall it be liable to any attachment in execution of any decree except for meeting the claims arising in respect of a policy of insurance issued after the complying with the requirements of this Chapter.(3)Where, on an application made to it in this behalf, any Court or Claims Tribunal, which has made an award for compensation under this Act, is satisfied-(i)that the applicant has exhausted all other remedies open to him to recover his dues from the insurer, or(ii)that the award has been made after the insurer has gone into liquidation, it may direct the payment of such, compensation from out of the sum deposited under sub-section (1):Provided that in the case of the insolvency of the insurer-(a)such payment shall not be made until all claims under this Act against the insurer have been settled; and(b)payment so made shall be proportionate to the amount of compensation allowed in each case.]
