48. Directors of insurers being companies.
(1) Where the insurer is a company incorporated under the Indian Companies Act, 1913 (7 of 1913 ), 1[ or under the Indian Companies Act, 1882 , (6 of 1882 ) or under the Indian Companies Act, 1866 (10 of 1866 ), or under any Act repealed thereby,] and carries on the business of life insurance, not less than one- fourth of the whole number of the directors of the company 2[ the number to be elected not being less than two in any case] 3[ shall notwithstanding anything to the contrary in the Articles of Association of the company be elected in the prescribed manner by the holders of policies of life insurance issued by the company].
(2) 4[ Only and all persons holding otherwise than as assignees policies of life insurance issued by the company of such minimum amount and having been in force for such minimum period as may be prescribed shall 5[ unless disqualified under sub- section (2A)] be eligible for election as directors under sub- section (1), and only and all persons holding policies of life insurance issued by the company and having been in force at the time of the election for not less than six months shall be eligible to vote at such elections: Provided that the assignment of a policy to the person who took out the policy shall not disqualify that person for being eligible for election as a director under sub- section (1).]
(2A) 1[ A person shall be ineligible for election as a director under sub- section (1) of any company if he is a director, officer, employee, or legal or technical adviser of that company, or of any other insurer, 2[ and shall cease to be a director under sub- section (1) if after election he acquires any disqualification specified in this sub- section or no longer holds the qualifications required by sub- section (2): Provided that nothing in this sub- section shall disqualify a person who is an elected director under sub- section (1) and is not otherwise disqualified under this sub- section, from being re- elected: 3[ Provided further that the Controller may exempt any director of a subsidiary company of the insurer from any disqualification imposed by this sub- section.]]
(3) 4[ The Central Government may, for such period, or to such extent and subject to such conditions as may be specified by it in this behalf, exempt from the operation of this section--
(a) any Mutual Insurance Company as defined in clause (a) of sub- section (1) of section 95, in respect of which the 5[ Controller] certifies that in his opinion owing to the conditions governing membership of the company or to the nature of the insurance contracts undertaken by it the application of the 6[ provisions of this section] to the company is impracticable, or
(b) any company in respect of which the 5[ Controller] certifies that in his opinion the company, having taken all reasonable steps to achieve compliance with the provisions of this section, has been unable to obtain the required number of directors with the required qualifications.]
(4) 8[ ] This section shall not take effect, in respect of any company in existence at the commencement of this Act, until the expiry of one year therefrom, and in respect of any company incorporated after the commencement of this Act, until the expiry of two years from the date of registration to carry on life insurance business.]