Section 43A: Abolition of Department of Insurance

1[43A. Abolition of Department of Insurance.—(1) As from the appointed date— (a) the Department of Insurance shall stand abolished; (b) no officer, employee, servant, or any other person holding any post in connection with the affairs of the Department of Insurance, shall have any right or lien to appointment to any post in the Commission; (c) any person referred to in clause (b) who is appointed by the Commission shall have the option either to remain a civil servant or to be an employee of the Commission and the option once exercised shall be irrevocable; (d) in the event of a person referred to in clause (b) opting to be an employee of the Commission, he shall cease to be a civil servant for all purposes and shall be entitled to such remuneration, allowances and other terms and conditions of employment as are applicable to the employees of the Commission. For the service rendered in the Department of Insurance such person shall be entitled to such benefits including the transfer of benefits the Commission as may be prescribed by the rules. But, in the event of such a person opting to remain as a civil servant, he shall be entitled to the same remuneration, allowances and other rights and privileges as are admissible to civil servants but, in other respects such as organizational structure, right to seniority, promotion and discipline, he shall be subject to the regulations made by the Commission, and for the period he served the Commission, the Commission shall contribute to the pension, gratuity and final payment of provident fund in accordance with the rules; 1Ins. by Ord. No. LV of 2000, s. 16. (e) a person referred to in clause (b) who is not appointed by the Commission shall continue to draw his pay, allowances privileges or other benefits as he was drawing while holding the post in the Department of Insurance and unless sooner he is appointed by the Federal Government to another post or otherwise ceases to remain in Government service on account of retirement, dismissal, removal, discharge from service or in any other manner applicable to a civil servant, the cost for paying salary, allowances and other benefits to such person shall be borne by the Commission; (f) save as otherwise provided in this Act, all debts and obligations incurred or contacts entered into or rights acquired and all matters and things engaged to be done by, with or for the Federal Government under or pursuant to the Law of Insurance before the appointed date shall be deemed to have been incurred, entered into, acquired or engaged to be done by, with or for the Commission, as the case may be; and (g) all suits and other legal proceedings instituted by or against the Federal Government under, or pursuant to, the Law of Insurance before the appointed date shall be deemed to be suits and proceedings by, or against, the Commission as the case may be and may be proceeded with and be dealt with accordingly.]

Effective date: 1997-01-01

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