Riot and Civil Commotion Risks Insurance Ordinance, 1947

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THE RIOT AND CIVIL COMMOTION RISKS INSURANCE 
ORDINANCE, 1947 
 
 
 
CONTENTS 
1.  Short title, extent and applications 
2.  Definitions 
3.  Properties insurable under this Ordinance 
4.  Ownership 
5.  [Repealed] 
6. [Repealed] 
7.  Employment of agents by Federal Government 
8.  [Repealed] 
9.  Recovery of premiums unpaid 
10 [Repealed] 
11.  Riot and Civil Commotion Insurance Fund 
12.  Powers of Federal Government to obtain information 
13.  Refund of premiums in certain cases 
14.  Limitation on prosecution 
15.  Composition of offences 
16.  Bar of legal proceedings 
17.  Power to make rules 
SCHEDULE 
 
 

 
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THE RIOT AND CIVIL COMMOTION RISKS INSURANCE ORDINANCE, 
1947 
ORDINANCE No. III OF 1947 
[7th November, 1947]  
An Ordinance to provide for the insurance of certain property against Riot and Civil Commotion 
Risks. 
 WHEREAS an emergency has arisen which makes it necessary to provide for the insurance of 
certain property against Riot and Civil Commotion Risks;  
 Now, THEREFORE, in exercise of the powers conferred by section 42 of the  Government of 
India Act, 1935, the Governor-General is pleased to make and promulgate the following Ordinance, 
namely:___  
 1. Short title, extent and applications.___(1) This Ordinance may be called the Riot and Civil 
Commotion Risks Insurance Ordinance, 1947.  
 (2) It extends to the whole of 1[* * *] Pakistan.  
 (3) The 2[Federal Government] may, by notification in the official Gazette, apply it to the whole 
of 1[Pakistan] or any part thereof from such date and in such manner as may be specified in the said 
notification.  
 2. Definitions. ___In this Ordinance, unless there is anything repugnant in the subject or 
context___  
(1) “factory” means a factory as defined in clause (j) of section 2 of the Factories Act, 1934 
(XXV of 1934);  
(2)  “factory buildings” includes all buildings comprised in the f actory, and such other 
buildings (including residential buildings for staff and workmen, hospitals and welfare 
centers) within a radius of two miles from the main factory as are in the same 
ownership or occupation as the factory and are used for the purposes of the factory;  
(3) “the Fund” means the Riot and Civil Commotion Insurance F und consti tuted under 
section II; hereafter mentioned. 
   (4) “Riot and Civil Commotion Risks” means the risks of___loss or damage (including loss 
or damage due to fire or explosion) directly caused by persons taking part in riots or 
civil commotions or by strikers or locked out workers or by persons of malicious intent 
acting on behalf of or in connection with any political organization; also loss or damage 
(including loss or damage due to fire or explosion) directly caused by the action of any 
lawfully constituted Authority in connection with the foregoing perils only:  
 
1Omitted and subs. by the Central Laws (Adaptation) Order, 1961 (P. O. 1 of 1961), Art. 2 and Sch., (with effect from the 23rd March, 1956).  
2Subs. by the Federal Adaptation of Laws Order, 1975 (P. O. 4 of 1975), Art. 2 and Table. 
 
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Provided always that the following shall be expressly excluded from the scope of this 
section:___ 
(i)  Loss or damage caused by any of the perils hereby insured against, if such loss 
or damage either in origin or extent is directly or indirectly, proximately or 
remotely, occasioned by or contributed to by any of the following occurrences, 
or, either in origin or extent directly or indirectly, proximately or remotely, 
arises out of or in connection with any of such occurrences, namely:  
       War, invasion, act of foreign enemy, hostilities or war  like   operations, 
(whether war be declared or not);  
(ii)   Loss or damage occasioned by cessation of work;  
(iii)  Consequential loss or damage of any kind or d escription whatsoever including  
delay, deterioration and loss of market.  
(5)   “prescribed” means prescribed by rules made by the 1[Federal Government] under this 
Ordinance.  
 
 3. Properties i nsurable under this Ordinance. ___(1) Subject to the provisions  of this 
Ordinance every factory, factory buildings and other moveable or immoveable property described in 
the Schedule shall be deemed to be the property insurable under this Ordinance.  
 (2) The 1[Federal Government] may, by notification in the official Gazette, from time to time 
amend the Schedule by adding thereto or omitting therefrom any kind of property.  
 4. Ownership. ___Save in so far as is otherwise expressly provided in this Ordinance, any 
property shall, subject to the provisions of this section, be deemed for the purposes of this Ordinance, 
to be owned___ 
(a)  if the ownership of the property is for the time being vested in a person in relation to whom 
the property is insurable under this Ordinance, by that person;  
(b)  if the ownership of the property is not so vested, by any person in relation to whom the 
property is insurable under this Ordinance and who is for the time being entitled either unconditionally 
or conditionally, to have the ownership of the property vested in him :  
 Provided that where___  
(i)  any property would, under the foregoing provisions of this sub -section, 
be deemed to be owned by a person in whom the property therein is 
vested otherwise than in the course of a business carried on by him in 
the Province, or who is entitled to have the ow nership of the property 
vested in him otherwise than in the course of such a business, and  
(ii)  any person carrying on business in the Province is for the time being 
entitled to sell the property as agent, the property shall be deemed to be 
owned by the last mentioned person.  
 
1Subs. by the Federal Adaptation of Laws Order, 1975 (P. O. 4 of 1975), Art. 2 and Table. 
 
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 5. 1[Repealed] 
 6. 1[Repealed] 
 7. Employment of agents by 2[Federal Government]. The 2[Federal Go vernment] may 
employ or authorise the employment of any person or firm as prescribed in order to act as its agent for 
any of  the purposes of this Ordinance and may pay to the persons or firms so employed such 
remuneration as the 2[Federal Government] thinks fit.  
 8. 1[Repealed]  
 9. Recovery of premiums unpaid. ___(1) 3[* * *] where any person has failed to insure as, or 
to the full amount required by this Ordinance and has thereby evaded the payment by way of premium 
of any money which he would have had to pay but for such failure, an officer authorised in this behalf 
by the 2[Federal Government] may determine the amount, payment of which has been evaded. The 
amount so determined shall be payable by such person and shall be recoverable from him as an arrear 
of land revenue and shall be a first charge on the property in respect of which the default was made.  
 (2) A person against whom a determination is made under sub -section (1) may, within the 
prescribed period appeal against such determination to the 2[Federal Government] whose decision shall 
be final.  
 10. 1[Repealed] 
 11. Riot and Civil Commotion Insurance Fund. ___(1) The 2[Federal Government] shall 
establish or cause to be established a Fund in a Province for the purposes of this Ordinance, to be called 
the Riot and Civil Commotion Insurance Fund into which shall be paid all sums received by the 
2[Federal Government] by way of Insurance premiums under the Riot and Civil Commotion Insurance 
Scheme or by way of payments made on composition of offences under section 15, or ordered to be 
paid under section 545 of the Code of Criminal Procedure, 1898 (V of 1898), in any prosecution under 
this Ordinance, and out of which shall be pa id all sums required for the 4[discharge] by the 2[Federal 
Government] of any of its liabilities under the Riot and Civil Commotion Insurance Scheme, or for the 
payment by the 2[Federal Government] of the remuneration and expenses of agents employed for th e 
purposes of that Scheme.  
 (2) If, at any time, when a payment is to be made out of the Fund, the sum standing to the credit 
of the Fund is less than the sum required for the making of that payment , an amount equal to the 
deficiency shall be paid into the Fund as an advance out of general revenues.  
 (3) If, at any time, the amount standing to the credit of the Fund exceeds the sum which, in the 
opinion of the 2[Federal Government], is likely to be r equired for the making of payments out of the 
Fund, the excess shall be paid into general revenues.  
 
 
1Rep. by Ord. No. XXII of 1948, s. 2, (with effect from the 1st November, 1948). 
2Subs. by the Federal Adaptation of Laws Order, 1975 (P. O. 4 of 1975), Art. 2 and Table. 
3Rep. by the Federal Laws (Revision and Declaration) Act, 1951 (XXVI of 1951), s. 3 and 2nd Sch.  
4Subs. ibid., s. 4 and 3rd Sch. 
 
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 (4) The 1[Federal Government] shall prepare in such form and manner as may be prescribed, 
and shall publish either annually or at such shorter intervals as may be prescribed, an account of all 
sums received into and paid out of the Fund.  
 12. Powers of 1[Federal Government] to obtain information.___(1) Any person authorised in 
this behalf by the 1[Federal Government] may, for the purpose of ascertaining whether or not the 
requirements of this Ordinance have been complied with___  
(a)  require any person carrying on  in any part of 2[Pakistan] the business of fire 
insurance or an owner of property to submit to him such accounts, books or 
other documents or to furnish to him such information as he may reasonably 
think necessary, or  
(b)  at any reasonable time enter an y premises occupied by any person carrying on 
in any part of the 2[Pakistan] any such business or by such owner of the property, 
and inspect the premises and require any person found therein who is for the 
time being in charge thereof to produce to him and allow him to examine such 
accounts, books or other documents as may relate to the business carried on in 
the premises or to furnish to him such information as he may reasonably think 
necessary.  
 
 (2) Whoever willfully obstructs any person in the exercise of his powers under this section or 
fails without reasonable excuse to comply with a request made thereunder shall, in respect of each 
occasion on which any such obstruction or failure takes place, be punishable with fine whi ch may 
extend to five hundred rupees.  
 (3) Whoever in purporting to comply with his obligations under this section, knowingly or 
recklessly makes a statement false in a material particular, shall be punishable with fine which may 
extend to one thousand rupees.  
 13. Refund of premiums in certain cases. ___(1) Where property of any description has been 
insured by an owner for any period, and before that period has elapsed property of that description has 
ceased, by virtue of a notification under sub -section (2) of section 3, to be property insurable under 
this Ordinance, the person who has insured such property shall be entitled to a proportionate refund of 
premium.  
 (2) In any other case the 1[Federal Government] may, at its discretion, order a refund to be  
made of any sum paid or purporting to have been paid as premium in respect of any policy issued or 
purporting to have been issued under this Ordinance.  
 (3) On and after the eighth day of November, 1947 , no suit shall be maintainable in any civil 
court against the 1[Federal Government] or a person acting as agent of the 1[Federal Government] 
under section 7 for the refund of money paid or purporting to have been paid as premium in respect of 
any policy issued or purporting to have been issued under this Ordinance.  
 14. Limitation on prosecution. ___No prosecution for any offence punishable under this 
Ordinance shall be instituted against any person except by or with the consent of the 1[Federal 
Government] or any authority on whom powers are conferred in t his behalf by the 1[Federal 
Government].  
1Subs. by the Federal Adaptation of Laws Order, 1975 (P. O. 4 of 1975), and Table. 
2Subs. by the Central Laws (Adaption) Order, 1961 (P.O. No. 1 of 1961), Art. 2 and Sch., (with effect from the 23rd March, 1956). 
 
 
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 15. Composition of offences.___Any offence punishable under sub-section (2) of section 8 may, 
either before or after the institution of the prosecution, be compounded by the 1[Federal Government] 
or by any authority on whom powers are conferred in this behalf by the 1[Federal Government], on 
payment for credit to the Fund of such sum as the 1[Federal Government] or such authority, as the case 
may be, thinks fit.  
 16. Bar of legal proceedings.___No suit, prosecution or other legal proceeding shall lie against 
any person for anything which is in good faith done or intended to be done under this Ordinance.  
 17. Power to make rules.___(1) The 1[Federal Government] may, by notification in the official 
Gazette, make rules to carry into effect the provisions of this Ordinance.  
 (2) Without prejudice to the generality of the foregoing power, such rules may prescribe___  
(a)  the forms of the policies of insurance referred to in sub-section (2) of section 6, 
the maximum period in respect of which such policies shall be issued, the rates 
at which premiums on such policies shall be payable and the minimum amount 
which shall be payable as any one premium on such policies;  
(b)  persons or firms to be prescribed for the purposes of section 7;  
(c)  the procedure in making determination and in presenting appeals from 
determination made under section 9;  
(d)  the form of and the manner of preparing the acco unt referred to in sub -section 
(4) of section 11 and the intervals at which such account shall be published.  
SCHEDULE 
 (1) Cotton Ginning Factories including the factory buildings.  
 (2) Cotton Pressing Factories including the factory buildings.  
 (3) Cotton in (1) and (2) above.  
 
___________ 
 
 
 
 
          RGN Date: 08-10-2024 
 
1Subs. by the Federal Adaptation of Laws Order, 1975 (P. O. 4 of 1975), Art. 2 and Table.