SECTION 41 OF THE INSURANCE ACT 1938 PROHIBITION OF REBATES

1) No person shall allow or offer to allow either directly or indirectly as an inducement to any person to take 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 renewing or continuing the Policy accept any rebate except such rebate as may be allowed in accordance with the published prospectus or tables of the Insurer.

2) If any person fails to comply with the above regulation, he shall be liable to payment of a fine, which may extend to five hundred rupees.