Section 23 of GIBNA : Section 23: Power Of Central Government To Issue Directions

Explanation using Example

Imagine that the Central Government decides it is in the public interest to promote affordable health insurance policies for underprivileged sections of society. Under Section 23 of The General Insurance Business (Nationalisation) Act, 1972, the government can issue a directive to all nationalised insurance companies, such as the General Insurance Corporation of India, to design and offer low-cost health insurance plans to serve this segment of the population. The companies are legally required to follow such a policy directive.