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SEPTEMBER 2006 AGENCY TRAINING

Section 27 of Insurance Act

Investment of Assets

65% GOVERNMENT SECURITIES

&

35% SPECIFIED STOCKS

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SEPTEMBER 2006 AGENCY TRAINING

Section 27C of Insurance Act

Prohibition for Investment of Funds outside INDIA

No Insurer shall directly

or

indirectly invest outside INDIA

THE FUNDS OF THE POLICY HOLDER

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SEPTEMBER 2006 AGENCY TRAINING

Section 29 of Insurance Act

Prohibition of Loans

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.

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SEPTEMBER 2006 AGENCY TRAINING

Section 31 B of Insurance Act

Power to restrict payment of excessive remuneration

Remuneration by way of Salary or Commission

cannot be disproportionate according to

normal standards prevailing in the

insurance industry.

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SEPTEMBER 2006 AGENCY TRAINING

Section 34B of Insurance Act

Power of Authority to appoint Additional Directors

If affairs being conducted are detrimental to the

interest of policy holders then can remove fromoffice,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.

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SEPTEMBER 2006 AGENCY TRAINING

Section 34 C of Insurance Act

Power of Authority to appoint Additional Directors

If the authority is of opinion that in the publicinterest or in the interest of the Insurer,or in theinterest of his Policy Holders it is necessary to

do so,he may from time to time,by order in

writing appoint one or more persons asAdditional Directors.

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SEPTEMBER 2006 AGENCY TRAINING

Section 40 B of Insurance ActLimitation of Expenses of Management in

Life Insurance Business

No Insurer shall , in respect of life insurance

business transacted by him in India,spendas expenses of management in any

calendar year an amount in

excess of the prescribed limits.

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SEPTEMBER 2006 AGENCY TRAINING

Section 52 H of Insurance Act

Power of Central Government to acquire undertaking ofInsurers in certain cases.

In the interest of the Policy Holders or

Share Holders of such Insurer,it is necessaryto acquire the undertaking of such Insurer the

Central Government may, by notified order,

Acquire the undertaking of such Insurer.

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SEPTEMBER 2006 AGENCY TRAINING

Section 54 of Insurance Act

Voluntary winding up

Notwithstanding anything contained in theIndian Companies Act , 1913 ( 7 of 1913 ),

an Insurance company shall not be wound up

voluntarily except for the purpose of affecting anamalgamation or a reconstruction of the company

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SEPTEMBER 2006 AGENCY TRAINING

Yes,

YourMoney

is Absolutely

SAFE