(7)Every contract between an insurer and a person acting on behalf of such insurer who before the commencement of the Insurance (Amendment) Act, 1950 (47 of 1950), has been employing insurance agents for the purpose of life insurance business, which is subsisting on such commencement, shall terminate after the expiration often years from such commencement, if it does not terminate earlier:Provided that every such contract shall be modified by the parties before the 1st day of January, 1951, to bring it into conformity with this Act, and any such modification shall--(i)as respects remuneration, whether in respect of business already procured or in respect of business to be procured thereafter, be such as may be mutually agreed upon between the parties, subject, in the case of remuneration payable on business procured before such commencement, to a maximum of an over-riding commission of two and a half per cent, plus a further commission not exceeding three and three-quarter per cent, on premiums in respect of which no commission is payable to any insurance agent;(ii)be deemed to include all the terms specified in Part B or Part C of the Sixth Schedule, as the case may be:Provided further that, in the event of any dispute as to the terms of any fresh contract, the matter shall be referred to arbitration.
