Updated: Thursday July 14, 2016/AlKhamis
Shawwal 09, 1437/Bruhaspathivara
Asadha 23, 1938, at 06:11:01 PM
The National Insurance Corporation (Reorganization)
Ordinance, 2000
ORDINANCE No. XXXVII of 2000
[11th August, 2000]
An Ordinance to provide for conversion of the National
Insurance Corporation into a public limited company
WHEREAS, it is expedient to provide for
conversion of the National Insurance Corporation into a public limited company
for incorporation under the Companies Ordinance, 1984. (XLVII of 1984).
AND WHEREAS the National Assembly and
the Senate stand suspended in pursuance of the Proclamation of Emergency of the
fourteenth day of October, 1999, and the Provisional Constitution Order No. I
of 1999;
AND WHEREAS the President is satisfied
that circumstances exist which render it necessary to take immediate action;
NOW, THEREFORE, in pursuance of the
Proclamation of Emergency of the fourteenth day of October, 1999, and
Provisional Constitution Order No. 1 of 1999, as well as Order No. 9 of 1999,
and in exercise of all powers enabling him in that behalf, the President of the
Islamic Republic of Pakistan is pleased to make and promulgate the following
Ordinance:---
1. Short title, extent and commencement.—(1) This Ordinance may be called the National
Insurance Corporation (Reorganization) Ordinance, 2000:
(2) If extends to the whole of
(3) It shall
come into force at once.
2. Definitions.—(1) In this Ordinance, unless there is anything repugnant
in the subject or context,---
(a) ”Company”
means the National Insurance Company Limited incorporated under the Companies
Ordinance, (XLVII of 1984) 1984.
(b) ”Corporation”
means the National Insurance Corporation established under section 3 of the
National Insurance Corporation Act, 1976; (XXIII of 1976)
(c) ”effective
date” means the date on which property, rights and liabilities of the
Corporation are vested in the Company under section 3; and
(2) All words and expressions used but
not defined in this Ordinance shall have the same meaning as in the Insurance
Act, 1938 (IV of 1938).
3. Vesting of the
property, rights and liabilities of the Corporation.—(1) As soon as may be after the commencement of this
Ordinance, the Federal Government may, by order, published in Official Gazette,
direct that as and from the date, as may be specified in the order by the
Federal Government, (hereinafter referred to as the effective date), all
property, rights and liabilities to which the Corporation was entitled or
subject, immediately before such orders, and identified therein, shall, on such
terms and conditions as the Federal Government may determine, vest in the
Company and become the property, rights and liabilities of the Company.
(2) An order issued under sub-section
(1) shall provide for all such matters consequential and incidental to the
matters provided for in sub-section (1) as the Federal Government shall
consider necessary or expedient.
(3)
An order issued under sub-section (1) shall provide for,---
(a) the
continuation by the Company of the operations and undertaking of the
Corporation on the same basis as were being carried on immediately prior to the
date of the order; and
(b) the
dissolution of the Corporation from the effective date on which date the
Corporation shall cease to exist.
(4) In consideration of the vesting in
the Company of the property, rights and liabilities of the Corporation under
the order issued under sub-section (1), the Company shall issue in the name of
the President of the Islamic Republic of Pakistan such number of fully paid
ordinary shares, of the Company as the Federal Government may determine to be
the estimated net asset value of the Corporation on the effective date.
(5) No stamp duty shall be payable
under any law for the time being in force or in relation to the transfer or
vesting of property of the Corporation under any order issued under sub-section
(1), or on any shares or securities or the certificates or scripts evidencing
title thereto issued to the President of the Islamic Republic of Pakistan.
(6) The value ascribed to the property
vested in the Company by the Federal Government under the order made under
tjiis section shall represent the actual acquisition cost of the property for
the purposes of taxation and depreciation.
(7) All contracts, bonds, agreement,
powers of attorney, grants. of legal representation and all other instruments
of whatever kind in each case subsisting or having effect immediately before
the effective date or to, which the Corporation may have been a party before
the effective date shall be deemed to have been made with the Company, as if,
instead of the Corporation, the Company had been a party thereto.
(8) All suits, appeals or other legal
proceedings of whatever nature by or against or relating to the Corporation
pending on the effective date in any court, tribunal or other authority shall
be continued, prosecuted and enforced in the same manner and to the same extent
as they would or might have been continued, prosecuted and enforced by or
against the Corporation.
(9) On and after the effective date,
any reference to the Corporation in any law other than the Ordinance, or in any
rule, regulation, other notification or in any contract, deed or other document
shall, except where the context otherwise requires or the Federal Government
otherwise directs, be construed as reference to the Company.
Explanation.—-For the purpose of this
section the expression “property” includes assets and entitlements of every
description and nature, wherever situated; and “liabilities” includes duties,
obligations, loans, encumbrances, claims and charges of every description and
nature, actual or contingent, whether or not they are capable, under any law of
Pakistan or of any other State or under any agreement or otherwise, of being
vested, transferred or assigned by the Corporation.
4. Transfer of employees from the
Corporation to the Company.—(1) All
whole time employees of the Corporation who had continuously served for a
period of not less than six months before the effective date shall be
transferred to, and become the employees of the Company, hereinafter referred
to as the “Transferred Employees”, on the same terms and conditions, including
remuneration, tenure of office, rights, perquisites, privileges, pension
benefits, gratuity, provident fund, group insurance and other matters, as were
applicable to them immediately before the effective date.
(2) No person transferred to the
Company pursuance to sub-section (1) shall be entitled to any compensation as a
consequence of transfer to the Company.
(3) The terms and conditions of service
of any Transferred Employee shall not be altered adversely by the Company
except in accordance with the laws of
5. Exemption from registration fees. Notwithstanding the provisions of section 470 and
Sixth Schedule of the Companies Ordinance, 1984, (XLVII of 1984) the company shall be exempt from payment of
the registration fees for the purpose of its incorporation.
6. Registration.—(1) The company shall be entitled to carry on
non-life insurance business in accordance with the object clause of its
Memorandum of Association, without obtaining the registration under the
Insurance Ordinance 2000 for a period of one year from the effective date.
(2) Within one year from the effective date,
the Company shall either:---
(a) get
itself registered under the said Insurance Ordinance, or
(b) cease to
enter into new contracts or insurance and all the provisions under the law for
the time being in force shall apply to the Company as they apply to the
unregistered companies.
7. Power to make rules. The Federal Government may, by notification in he
official Gazette, make rules for carrying out the purposes of this Ordinance.
8. Removal of difficulties. If any difficulty arises in giving effect to any of
the provisions of this Ordinance, the Federal Government may make such order,
not inconsistent with the provisions of this Ordinance, as may appear to it to
be necessary for the purpose of removing the difficulty.
9. Repeal. Immediately after the incorporation and registration
of the National Insurance Company as a public limited company, the National
Insurance Corporation Act, 1976 (XXIII of 1976), shall stand repealed.
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