Agricultural Insurance Law (No. 27 of 1975)

AGRICULTURAL INSURANCE LAW= No. 27 OF 1973 OF THE NATIONAL STATE ASSElVIBLY (Certitled on 11th July. 1978] Printed on .the Orders of Government PRINTED AT THE . DEPAJlTMENT OF GOVERNMENT PRINTING, SRI LANKA (CEYLON) TO BE PURCHASED AT THE COVT. PUBLICATIONS BUREAU, COLOMBO Agricult11,ral l·nsurance Law, No. 27 of 1973 L. D.-0. 46/72 A LAW TO PROVIDE FOR THE ESTABLISHMENT OF A BOARD KNOWN AS THE AGRICULTURAL INSURANCE BOARD FOR . UNDERTAKING THE BUSINESS OF AGRICULTURAL INSURANCE FOR SPECIFIED CROPS AND LIVESTOCK, TO REPEAL THE CROP INSURANCE ACT, No. 13 OF 1961; AND TO PROVIDE FOR MATTERS CONNECTED THEREWITH OR INCIDENTAL THERETO. BE it enacted by the National State Assembly of the Republic of Sri Lanka as follows : -· 1. This Law may be cited as the Agricultural Insurance Lalv, No. 27 of 1973, and shall come into operation on such date as may be appointed by the Minister hy Order published in the Gazette. PART I ESTABLISHMENT OF THE AGRICULTURAL INSURANCE BOARD 2. (1) There shall be established a Board which shall be called the Agricultural Insurance Board (hereinafter ref erred to as " the Board ") and which shall consist of the following members: (a) the Chairman appointed by the Minister, ... (b) an officer of the Ministry in charge of the subject . of Agriculture nominated by the Secretary to that Ministry, (c) the Director of Agriculture or an officer nominated by him, (d) the Commissioner of Co-operative Development or an officer nominated by him, (e) an officer of the People's Bank, Bank of Ceylon or any other Bank approved by the Govern ment, such Bank being determined by the Minister and such officer being nominated by the Chairman of the Board of Directors of the Bank; · (J) an officer of the Insurance Corporation of. Ceylon nominated by its Chairman, and (g) · an officer of the Paddy Marketing Board .. · nominated by its Chairman. (2) .. The Board shall by the name assigned to ii by subsection (1) be a body corporate and Rhall have perpetual succession and a common seal and may sue . and ht sued in such n~e. . Short title and dote of opera tion. Eet11.blishment and oonetitu tion of the Board. OhMrman of U18 · Boa.rd. &o. General oontrol of the Boud. Seal of tbie Board. Powen of MiDiat.er in rela• tion to tJle Board. 2 Agricultural lnsu'rance Law, No. 27 of 1973 3. (1) The Chairman of the Board shall, subject· to the provisions of subsections (2) and (5), bold office, for a period of three years, and be eligible for reappointment. (2) The Chairman of the Board may be removed . from office by the Minister by Order published in the Gazette, if the Minister considers that it is expedient to do so, and such removal shall not be called in ques tion in any court. (3) If the Chairman is for any reason temporarily unabl~ to perform the duties of his office the Minister ·may appoint a fit person to act in his place. ( 4) The Chairman of the Board shall be remunerated in such manner and at such rates and shall be subject to such conditions of service as may be determined bY the Minister with the concurrence of the Minister fn charge of the subject of Finance. (5) The Chairman of the Board may resign his office by letter addressed. to the Minister. (6) The quorum for the meetings of the Board shall be three members of the Board, and subject as afore said, the Board may regulate its own procedure . . . (7) The Board may act notwithstanding any vacancy amongst its members. . 4. The general supervision, control, and adminis tration of the affairs and the business of the Board shall be vested in the members of the Board. 5. (1) The seal of the Board shall be in the custod) of the Board. (2) The seal of the Board may be altered in sucb manner as may be determined by the Board. (~) The seal of the Board shall not be affixed to an. instrument. or document except in the presence of twt members of the Board both of whom shall sign the instrument in token of their presence. 6. The Minister may give such general or specia ·dir~tions in writing as to the performance of tbi :duties and the exercise of the powers of the Board and such Board shall give effect to such directions. Agricultural, Insurance Law, No .. -27 of 1973 ·.· 3 . 7. (1) The Board may appoint to the staff of the Staff. of the . Board such officers and servants as may · be necessary Board. for the efficient discharge of its functions. (2) At the request of the Board, any officer in the state service may, with the consent of that officer and . the Secretary to the Ministry in charge of the subject of Public Administration, be temporarily appointed to the staff of the Board for such period as may be determined by the Board with like consent or be permanently appointed to such staff. (3) Where any officer in the state service is temporarily appointed to the staff of. the Bo·ard, subsection (2) of section 9 of the Motor Transport Act, No. 48 of 1957, shall, mutatis mutandis, apply to and in relation to him. (4) Where any officer in the state service is perman ently appointed to the staff of the Board, subsection (3) of section 9 of the Motor Transport Act, No. 4.8 of 1957, shall, mutatis mutandis, apply to and in relation to him. (5) Where the Board employs an y person who has . entered into a contract with the Government for a · specified period, any period of service to the Board by that person shall be regarded as service to the Government for the purpose of discharging the obliga ~ons of such contract.. ,'R, •• · · · · (6) All officers and servants of the Board shall be · deemed to be state officers within the meaning and for · · -the purposes of the Penal Code. 8. The Board shall be deemed to be a. scheduled institution within the meaning of the Bribery A~t and ·. · the provisions of tha.t Act shall be construed t accordingly. . . · - ~. 9~ The geneJ.!al objec~ of th~ Board shall bci (a) to operate a comprehensive agricultural insu r ance scheme for the benefit of farmers in respect of t?e paddy crop,- and of such o~her crops (heremafter i'ef erred to ·as '" specified ~rops "), as may be specified by the Minister ~y Notification published by the Gazette and ;~~ respect .of livestock, which s~heme. will 1~clemnify them against loss; provide · a ~~'a~lizing effect on farm income, and promote agricultural production ; and .• Board deemed to be a aobe duled institti tion within the meaning of the Bribery Aot. General obj""'8 of the Bo&rd. 4 Agricultural Insurance Law, No. 2-7 of 1973 (b) to undertake research necessary for the promo tion and development of such agricultural insurance. 10. (1) The Board may exercise all or any of tbr following powers : (a) Lo acquire, hold, take on lease or hire, mortgage. sell or otherwise dispose of any movable 01 immovable property; (b) to conduct, assist and encourage research int., all aspects of the business of agricultur~: insurance ; · (c) to enter into and perform, either directly or through any officer or agent authorized ir that behalf, all such contracts as may b( necessary for the performance of its dutie: and the exercise of its powers; (d) to do anything for the purpose of advancing th1 skill of persons employed by the Board, an, to provide f acilit1es for training person required to carry out the work of the Boar<l (e) to authorize any member or officer of the Boar, or any state officer to perform such function as the Board may consider necessary for the efficient transaction of its business; (/) to make rules in relation to its officers au, s~rvants including their ~pp<>i~tment, promc t1on, remuneration, d1sctphnary contro, conduct and grant of leave to them; (g) t-0 enter. into joint schemes with any Gover1 ment Department, public oorporatio1 Agricultural Productivity Committee, set u. under the Agricultural Productivity La" · No. 2 of 1972, or any agent of suc Committee, or any oo--0perative society set 1 under the Co--0perative Soc~eties ~aw, No. of 1972, for carrying out the ob,3ects of th Board; (h) to make rules ii:i r~pect of ·th e :·a.dm.inistratio: of ·the affairs of the Board;·. ·(i) to ·do.all.Qther thmgs whicJ(~~~;?J?inion (• thtL ;Board a.re necessP,icy .. ~-! J~~1htate tb proper carrying on of its busmess. Agricultural Insurance Lau,,•, No. 27 of 1973 5 (2) The Minister may by Order published in t.he Gazette authorize the Board, subject to such condi tions as may be specified in the Order, to carry on any undertaking or business or to do any act or thing not mentioned in the preceding provisions of this section, if he is satisfied that it is expedient so to do for any purpose connected with the efficient discharge and performance of the powers and duties oonf erred or imposed on the Board by such preceding provisjons. (3) Every Order made under subsection (2) shall as soon as convenient after publication in the Gazette he brought before the National State Assembly for approval. Any Order which is not so approved shall be deemed to be revoked as from the date of di~ approval, but without prejudice to anything previ ously done thereunder. Every Order which is not so revoked shall be as valid a.nd effectual as though it · were herein enacted. (4) Nothing in the preceding provisions of this . section shall be construed as authorizing the disregard by the Board of any law for the time being in force. PA.RT II CoMPU!,SORY INSURANCE OP' THE PADDY CROP 11. (1) Subject to the other provisions of this Law, every person having an interest in the paddy ~rop in any such area as may from time to time be determined for the purposes of this Part of this Law by the Minister by Order published in the Gazette, shall, with . effect from such date as may be specified in such Order, be deemed to have entered into a con tract of insurance with the Board against the loss of such crop arising from any such cause as may be specified in such Order (hereinafter ref erred to as a " specified · cause "). · (2) For the purposes of subsection (1), a person having an interest in the paddy crop shall mean an ~~er cultivator, a tenant cultivator, a landlord with ·t.enant cultivators and a landlord with agricultural J~.urers, and any such person ·who is under sub section (1) deemed to· have entered into a·contract of insurance is hereinafter ref erred to as an " insured ·person''. , . Compulw>ry .i.mutimoe Gf. the paddy crop. DeMirmination and payment of premium. 6 · Agricultural Insurance Law, No. 27 of 1973 In this subsection, " owner cultivator ", " tenant cti.ltivator ", " landlord '.' and " agricultural labourers " have the same meanings respectively as in the Paddy Lands Act, No. 1 of 1958. (3) .The Board may, with the approval of the Minister by Order published- in the Gazette, exclude from the provisions of this section, any area or extent of land where the risk of loss is considered excessive. 12. (1) The Board shall d~termine, and may from time to time alter, the amount of the premium to be paid by insured persons. (2) Where two or more insured persons have shares in the paddy crop, the premium payable by each such insured person shall be determined by the Chairman· of the Board, having regard to the share to which each such insured person is entitled. (3) Such premium may be paid in money or in a q'\lantity of paddy the value of which is equal to the amount of the premium, such value being computed according to the price for the time being of paddy under the Guaranteed Price Scheme, if that Scheme applies to such crop or, if t4at Scheme does not apply' to such crop, accordmg to such average of the market prices of such crop during the three y.ears immediately. preceding the year in which "thei'pre:d.tn1ni'~i~'fl>ayable, as may be determined by the Board. (4) Where the Guaranteed Price Scheme applies to the paddy crop, it s hall be l~wful for the Paddy Marketing Board or its authorized purchasers, at the request of the Agricultural Insurance Board, to deduct- from the amount payable to the insured person. as the price of any quantity of -that crop purchased/ from him 1:111der that .. Scheme by the Paddy Marketing Boa.rd or its authorized pU'rchasers, .as the case may be, the amount of the premium payable to the Agri cultural Insurance Board by the insured. person under this Law. ·;!{ff I f an insured 'person W~?;-Sf Tiapw; ~'pay, any .:.::r!b:i;~~1~t~:t~~~~ra~~~~::I:o~J1:ib"J: ~m shall ~ ·?eemed U.,:;be c'i~)l~f~i!l~,}¼!11 w~ether with 'an tldd1tional cha.tjte~y,:.w.~-r ~:f-::1,nterest· at such rat.e as mav be determined'by .t)ie Mini~t'~Y Notifir.a. tion published in the Gazett e, shall be· recovered on Agricultural Insurance Law, No. 27 of 1979 7 application made to the Rural Court having jurisdic tion over the place where the extent of paddy land the premium in respect of which is in def a ult is situated or where there is no Rural Court having juris diction over that place to a Magistrate's Court having jurisdiction over that place, by an officer autho rized in that behalf by the Board in like manner as .a fine imposed by such Court, and for the purposes of such recovery, the produce from the extent of Jand in respect of which such premium is payable shall be liable to seizure and sale. (6) For the purpose of subsection (5), a certificate under the hand of the officer authorized in that behalf by the Board to the effect that the sum specified therein is due to the Board from the insured person shall be conclusive proof that such sum is due to the Board from such person. 13. Where, due to any specified cause, there is a 1.o11e alBtm. loss of the paddy crop in an extent of land, the insured person shall, within seven days of the occur rence of such loss, prefer a written claim to indemnity in re~pect of such loss to the agent appointed by the Board within whose area of jurisdictioii such extent of land is situated. 1-1. (1) The computation of the amount of Awardof )11demnj.ty payable in res~ect of the loss of the paddy . ~~mm'i),. brop shall be made accordmg to such terms and condi tions as shall be specified by the Minister by Order published in the Gazette. . (2) Any sum due to an approved credit agency which has granted loans to an insured person for the purpose of paying the premium may be deducted from the amount of the indemnity payable to such insured person. · · 15. (1) Where an officer authorized in that behalf Appeate aga.inat by the Board reJ· ects a claim to indemnity made by rejectionol • claimatoindem-an msured person or where an insured person is dis- nity, &o. sat1~fied with the amount of the indemnity awarded tQ{hJ.?ll by. any such officer, su~ in~ured pe~son may, ,w1 .. thJ.J? ~irty days of the not1ficat~on to him of the }:~J~~1on or of the a war~ of the mdemnity, as the 1tase·.~ay be, make a written appeal to the Board, ~. the grounds of appeal. "":~"1fr~e de¢ision of the Board on a'!1y appeal under ~f~ection shall be final and conclusive and shall not be,called in question in 'any court. . M&xl.mmn imruranoe liability. .llinllter to determine the orope and •peciea of live.. tock for volun t.u., inaurance. ID9IJl'aDOe policy. 8 Agricultural Inrnrance Law, No. 27 of 197;: 16. (1) For the purposes of this Part of this Law,' where the amount of indemnities payable in. respec~ of any season does not exceed fi.f teen per centum of the total insurance liability, such amount shall be paid out of the Agricultural Insurance Fund. \Vhere such amount exceeds the aforesaid fiftee~• per centum, the part of such amount which is equal to such fifteen per centum shall be paid out of the Agricultural Insurance Fund and the balance of such amount shall be paid out of moneys provided for the purpose by the Government. (2) In this section, '' total insurance liability '' means the amount obtained by multiplying the total insured acreage of land cultivated with paddy in any cultivation season, by the maximum indemnity pay able. PART III VOLUNTARY INSURANCE OF OTHER CROPS AND LIVESTOCK ' 17. The Minister may, from time to time, by Order published in the Gazette, determine the crop or crops and the species of livestock in respect of which voluntary insurance shall be provided by the Boarct. 18. The Board shall, subject to" ·Sllch terms and 1 conditions as may be prescribed, issue to every person who applies to insure any crop or species of livestock under this Part of this Law an insurance policy con taining (a) the name of the insured ; (b) the subject-matter of insurance ; (c) the sum insured ; (d) the term of cover ; (e) the causes of loss insured; and (J) such terms, exceptions, conditions and endorse ments as m&y be determined ·by the Board. 19. For the purposes of this Parf of this L&w, the Boa.rd may, witli the approval of the Minister, enter into reinsurance contracts with tlie Government or any local or foreign institution undertaking the business of reinsurance. A griculturallnS'U,1·ance Law, No. 27 of 1973 ~ PART IV FINANCE 20. (1) The initial capital of the Board shall be two million rupees. • O&pital of dw Board. (2) The initial capital of the Board may be in creased from time to time by such amount as may be deter~ined by the Minister with the approval of the Minister in charge of the subject of Finance. (3) The amount of the initial capital of the Board .and the amount of any incr~ase of such capital ref erred to in subsection (2) shall be paid to the Board out of the Consolidated Fund in such instalments as the Minister in charge of the subject of Finance may, in consultation with the Minister, determine. (4) As soon as possible after a payment out of the Consolidated Fund has been made towards the initial ca{>if:8-1 of. the Board or towa~~ its i1;1crease, tl?-e Mm1ster m charge of the subJect of Fmance shall lay a statement of such payment before the National State Assembly. 21. (1) There shall be established-an Agricrilttiriil Insurance Fund (hereinafter ref erred to as •' the ri.1. Fund "). (2) There shall ~e paid into the Fnnd (a) all such sums as may be. voted from time to time by the National State Assembly for the use of the Board; (b) all such moneys received by ihe Board in the exercise, discharge and performance -of the powers, functions and duties under thi~ Law; (r) all sums of money lying .to the ~t of the Insurance Fund estabh.sh~ Dllder the Crop Insurance Act, No. 13 of l96L · · : .. . ' .. (3) There shall be paid out of the Fond all s~ of money require~ to defray any :~xpeiiditure incurred by .th~ l~o.ard 1~ the ,exerc!se, discharg~;:11.D.~ perfo~- . m~ce. of ~ts pow.~rs,. fnnct10~ an<:{ 9:~t~es -~der t~ Law, and all such sums of money as are ·reqmred to be paid oµt of such Fund by or under this Law 1.Ptmd of the Board. :Kr;pe~ of ad mini Btra tion. Borrowing po wers of the Board. Invest.ment of funds of the Board. Application of provisions of Part II of the Ymanoe Aot,No. 38 of 1971. &,gulationa. 10 Agricultural Insu1·ance Law, No. 27 of 1973 22. The remuneration and allowances payable to the members of the Board and all other expenses in curred in the administration of this Law shall be pa.id out of moneys provided by the National State Assembly for the purpose. 23. (1) The Board may, with the concurrence of both the Minister, and the Minister in charge of the subject of Finance, or in accordance with the terms of any general authority given with like concurrence, borrow, by way of overdraft or otherwise, or nego tiate and obtain on credit terms, such sums as the Board may require for meeting the obligations of the Board or C;arrying out its object: Provided that the aggregate of the amounts out standing in respect of any loans raised by the Board under this subsection shall not at any time exceed such sum as may be determined by the :Minister with the concurrence of the Minister in charge of the subject of Finance. (2) The Board may, with the consent of the Minister given with the concurrence of the Minister in charge of the subject of Finance, borrow money otherwise than by way of loan under subsection (1) for all or any of the following purposes : (a) the requisition or acquisition of any movable or immovable property required for the busi ness of the Board ; · · (b) the repayment of any money borrowed under subsection (1). 24i. Any funds of the Board which are not imme diately required for the purpose of the business of the Board may be applied by · the Board to any such purpose connected with agricultural development as may be determined by the Minister with the concur rence of the Minister in charge of the subject of Finance. 25. The provisions of Part II of the Finance Act, No. 38 of 1971, shall mutatis mutandis apply to the financial control and accounts of the Board. · PART V GENERAL 26. . (1) The Minister may m.ak~ . regulations for the purpose of carrying out or g1vmg effect to the principles and provisions of this Law. Agricultural Insurance Law, No. 27 of 1973 11 (2) In particular and without prejudice to the geJterality of the powers conferred by subsection (1), the Minister may make regulations m respect of all matters which are stated or required by this Law to be prescribed or for which regulations are required by this Law to'be made. (3) Every regulation made by the Minister shall be published in the Gazette and shall come into operation on the. date of such publication or on such later date as may' he specified in the regulation. (4) Every regulation made by the Minister shall as soon as convenient after its publication in the Gazette be brought before the National State Assembly for approval. Any regulation which is not so approved shall be deemed to be· rescinded as from the date of disapproval but without prejudice to anything previously done thereunder. Notification of the date on which a regulation is deemed to be rescinded shall be published m the Gazette. 27. (1) No suit or prosecµtion shall lie {a) against -the Board for any act which in good faith is done or purported to be done by the Board under this Law; or (b) against any member, officer, servant or agent of the Board for any act which in good faith is !1one or P1-!!'Ported ~ be- done by-him UAd~r, this Law or on ·the direction of the Board. (2) Any expense incurred by such person as is referred to in subsection (1) in any suit or prosecution brought against him before any court in respect of any act which is done by him under this Law or on the direction of the· Board shall, if the court holds .that the act was done in good faith, be paid out of the Fund. - · · Protection f<Y. action taken under this Lew or on direction of the Boa.rd. · 28. (1) Every person who contravenes or fails to Offencee. oomply with any provisions of this Law or any regulation made thereunder or any order or direction lawfully given under·this Law shall be guilty of an offence under·this n-:;aw.- - . · · --- · . (2) Every per$~i Wh~!-~punits an off en~ 'Ullder this La.w:sh.all ·on oonvictiori :it,!t;er·summary ti:lal.-before a Ma.gi.s'trate be " lial:>le ,"t,o; imprisoirine:p.t of either ~e.5cri ption for; a ~pe~iQ<l~t; e~ceed.~-i11~zyear, o:t:.,to &ifint:. not ex~ding~'.on~ :·$ou,sa.nd ~t!U.p~e~kor-·:to. both such fine and imprisonment. . · This Ll>w w prevail o,·er othor written lnw. Proporty of tho Republic both immovable and movable to be mad,i e.ve.ilable t.:> the Board and aquisition of immovable property under the Land Acquisition Act. for t-he Board. 12 A gricaltura.l Insurance Law, No. 27 of 1973 (3) Notwithstanding anything to the contrary in the First Schedule to the Criminal Procedure Code, every offence under this Law, shall be a cognizable offence within the meaning of that Code. (4) Where any offence under this Law is committed by a body corporate e,,ery person who at the time of the commission of the offence was a member, general manager, secretary, or other similar officer of the body corporate shall be deemed to be guilty of that offence unless he proves that the offence was committed with out his consent or connivance and that he exercised all such diligence to prevent the commission of that offence as he ought to have exercised in the ci rcums tances having regard to the nature of the offence. 29. The provisions of this Law shall have effect notwithstanding anything contrary in any other written law, and accordingly in the event of any conflict or inconsistency between the provisions of this Law and such other law, the provisions of this Law shall prevail. 30. (1) Where ·,my immovable property of the Re~ublic is required for the purpose of the business of the Board, ·such purpose shall be deemed to be a purpose for which a special grant or lease of such proper.ty may be made under section 6 of the Crown Lands Ordinance, and accordingly the provisions of that Ordinance shall apply to a special grant or lease nf such property to the Board. (2) Where any movable property of the Republic is required for the purpose of the business of the Board, the Minister may by Order published in the Gazette transfer to and vest in the Board the possession and use of such movable property. (3) Where any immovable property is required to be acquired for the purpose of the business of the Board, and the Minister, by Order published in the Gazette, approves of the proposed acquisition, that property shall be deemed to be required for a public putpose and may accordingly be acquired compulsorily under . the Land Acquisition Act and be transferred to the Board. (4) Any sum payable for the acquisition of. any im movable property under the Land Apquisition Act for the Board shall be paid by the Board. Agric·ultural Insurance Law, No. 27 of 1973 13 3:1. Where any person to whom any indemnity payable under this Law dies before receiving such indemnity, the Board shall pay such indemnity to the District Court or Court of Requests within whose local jurisdiction the land to which such indemnity relates is wholly or mainly situated, according as such indemnity exceeds or does not exceed seven hundred and fifty rupees, to be drawn by the persons entitled thereto. ' 32. The holder or holders of an insurance policy issued under this Law may assign such policy to an approved credit agency as security for a loan given by such agency to such holder or holders for any purpose connected with the raising of anv specified crop on the extent of land to which such policy relates. 33. No sum due to any person as indemnity under this Law shall be seized or sequestered in execution of a decree or an order of any court, other than a decree or an order for the payment of a sum of money to the Republic or to any approved credit agency, notwithstanding anything to the contrary in a.ny other written law. 34. Where any person is entitled to any indemnity payable under this Law and the Board is satisfied that any sum is due from that person to an approved credit agency in repayment of the whole or any part of a loan granted by such agency to that person or in payment of any interest on that loan, the Board may cause the sum due to such approved credit agency to be deducted from the amount of such indemnity and t.o be remitted to such agency. 35. Where the right, title and interest of an insured person is transferred to any other person, the transferee shall be entitled to all the rights of the transferor and shall, from the date of the transfer, be subject to all the outstanding obligations of the trans£ eror. Paymen, vf indemnity on death of pcnon entitlod therE>to. Assignment Qf insurance po licy by way nf security for loan. Prohibition uf seizure or se questration of indemnity Ullf' to any pol'i'On. Deductior,;; fromindenm,;y. Effect of tram. fer of intereet. to which an insmance policy relatee. 86. The contract of insurance under this Law may Voidanoe of be declai:ed void, and the premium paid in respect insunmoe. of" s~ch- contract may be forfeited, by the Board if tlje'.~d (~).l.(.;;ceaJ.ed o~ misrepresented all)'. material · 1 •• ac~-or committed any fraud relatmg to the ., . . ance, or Payment. premium kind. of in Power of in.s peotion of lands in which speci fied crops aro r9.ised, Power to direct an insured per son to take mea 81lr88 to prevent damage to in sured land. Repeal of Crop Insurance Act, No. l 3 of 1961. 14 Ag1·icultural Insurance Law, No. 27 of 197ii (b) fails to comply with any term or conditi, such contract. 37. (1) The amount of any premium undc contract of insurance under this Law shall be in cash or in the specified crop to which that cont relates or partly in cash and partly in that spec· crop. (2) The Board may, as often as it is necessary. any part of the Fund which consists of specified c1·• and shall credit to such Fund the proceeds of the after deducting therefrom the expenses incurred i11 sn1c. 38. ( 1) The Board or any officer authorized in ; behalf by the Board may enter and inspect any 1 on which there is any specified crop or any insu livestock and any documents relating thereto an( shall be the duty of every nerson who is in occupa: of such land to permit and assist such inspection. (2) Ev~ry person ,. ,ho fails to comply with provisions of subsection (1) shall be guilty of offence and shall, on conviction after summary t1 beforP. a -Magistrate, be liable to a fine not exceedi one hundred rupees. 39. The Board or any officer authorized in tl behalf by the Board may direct an insured person the holder of an insurance policy under this Law take such measures in respect of the crop or li vestc· as may be necessary to prevent or minimize damn to such crop or livestock. 4i0. (1) The Crop Insurance Act, No. 13 of tor is hereby repealed. (2) Notwithstanding the repeal of the Crc, Insurance Act, No. 13 of 1961, all liabilities by wa of premium payments by insured persons pendin and payable under the provisions of that Act. shal; on the date of commencement of this Law, be deeme• to be payable to the Board. Agricultural Insurance Law, No. 27 of 1973 15 4i1. In this Law " approved credit agency " means any co-operative society or other institution for the time being declared by the Board by notification published in the Gazette to be an approved credit agency for the purposes of this Law; and "' public corporation '' means any corporation, board or other body which was or is estab lished by or under any written law, other than the-Companies Ordinance, with capital wholly or partly provided by the Government by way of grant, loan or other form. loterpretatioD..