Safety of Policy Holder’s Money in ULIP plans.

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This section states “65% compulsorily to be put

in Govt. Securities & the balance 35% in specified

stocks.”

“Investment Of Assets”

Section 27 Of Insurance Act

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This section states “No Insurer shall directly

or indirectly invest outside India the funds of the policy holders.”

“Prohibition for investments of funds outside India.”

Section 27 C Of Insurance Act

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This section states “No insurer shall grant loans or temporary advances either on

hypothecation of property or on personal security or otherwise, except loans on life

policies issued by him within the surrender value, to any director,

manager, managing agent, actuary, etc.”

“Prohibition of Loans”

Section 29 Of Insurance Act

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“Power to restrict payment of excessive remuneration”

This section states “Remuneration whether by way of salary

or commission cannot be disproportionate, according to normal standards prevailing in the insurance

industry.”

Section 31 B Of Insurance Act

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“Power of authority to remove managerial person from office”This section states

“If affairs being conducted in detrimental to the interests of policy holders then can remove from office, with effect from such

date as may be specified in the order, any director or chief executive officer, by

whatever name called, of the insurer.”

Section 34 B Of Insurance Act

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“Power of authority to appoint additional directors”

This section states “If the authority is of opinion that in the

public interest or in the interest of insurer, or his policy holders it is

necessary to do so, he may from time to time, by order in writing appoint one or more persons as additional directors.”

Section 34 C Of Insurance Act

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“Limitation of expenses of management in life insurance business”

This section states “No insurer shall, in respect of life

insurance business transacted by him in India, spend as expenses of management in any calendar year an amount in excess

of the prescribed limits.”

Section 40 B Of Insurance Act

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“Power of Central Government to acquire undertaking of insurers in certain cases”

This section states “In the interests of the policy holders or

share holders of such insurer, it is necessary to acquire the undertaking of

such insurer the Central Government may, by notified order, acquire the

undertaking of such insurer.”

Section 52H Of Insurance Act

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“Voluntary Winding Up”

This section states “Notwithstanding anything contained in

the Indian Companies Act, 1913 (7 of 1913) an insurance company shall not be

wound up voluntarily except for the purpose of affecting an amalgamation or

a re-construction of the company.”

Section 54 Of Insurance Act

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Thanks toInsurance Act

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