(1)No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person totake out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewingor continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer:Provided that acceptance by an insurance agent of commission in connection with a policy of life insurance taken out by himself on hi s own life shall not be deemed to be acceptance of a rebate of premium within the meaning of this sub-section if at the time of such acceptance the insurance agent satisfies the prescribed conditions establishing that he is a bona fide insurance agent employed by the insurer.(2)Any person making default in complying with the provisions of this section shall be liable for a penalty which may extend to ten lakh rupees.
