(1)No insurer shall, after the expiration of seven years from the commencement of the Insurance (Amendment) Act, 1950 (47 of 1950), appoint, or transact any insurance business in India, through a principal agent.(2)Every contract between an insurer and a principal agent shall be in writing and the terms contained in Part A of the Sixth Schedule shall be deemed to be incorporated in, and form part of, every such contract.(3)No insurer shall, after the commencement of the Insurance (Amendment) Act, 1950 (47 of 1950), appoint any person as a principal agent except in a presidency town unless the appointment is by way of renewal of any contract subsisting at such commencement.(4)Within sixty days of the commencement of the Insurance (Amendment) Act, 1950 (47 of 1950), every principal agent shall file with the insurer concerned a full list of insurance agents employed by him indicating the terms of the contract between the principal agent and each of such insurance agents, and, if any principal agent fails to file such a list within the period specified, any commission payable to such principal agent on premiums received from the date of expiry of the said period of sixty days until the date of the filing of the said list shall, notwithstanding anything in any contract to the contrary, cease to be so payable.(5)A certified copy of every contract as is referred to in sub-section (2) shall be furnished by the insurer to theAuthority within thirty days of his entering into such contract, and intimation of any change in any such contract shall be furnished by the insurer with full particulars thereof to theAuthority within thirty days of the making of any such change.(6)If the commission due to any insurance agent in respect of any general insurance business procured by such agent is not paid by the principal agent for any reason, the insurer may pay the insurance agent the commission so due and recover the amount so paid from the principal agent concerned .(7)Every contract as is referred to in sub-section (2), subsisting at the commencement of the Insurance (Amendment) Act, 1950 ( 47 of 1950 ), shall, with respect to terms regarding remuneration, be deemed to have been so altered as to be in accordance with the provisions of sub-section (4) of section 40A.(8)If any dispute arises as to whether a person is or was a principal agent, the matter shall be referred to the Authority, whose decision shall be final.(9)Every insurer shall maintain a register in which the name and address of every principal agent appointed by hi m, the date of such appointment and the date, if any, on which the appointment ceased shall be entered.
