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How Safe Is My Money

The document discusses various sections of the Insurance Act that protect policyholders' money. It outlines regulations around how insurers can invest assets, prohibitions on investing funds outside of India or granting loans to directors. It also discusses limitations on expenses and management remuneration, and gives the insurance authority powers to appoint additional directors or acquire insurers' undertakings in certain cases. The conclusion is that with these regulatory requirements, policyholders' money is kept safe.

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Nagendran Balasubramanian
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48 views12 pages

How Safe Is My Money

The document discusses various sections of the Insurance Act that protect policyholders' money. It outlines regulations around how insurers can invest assets, prohibitions on investing funds outside of India or granting loans to directors. It also discusses limitations on expenses and management remuneration, and gives the insurance authority powers to appoint additional directors or acquire insurers' undertakings in certain cases. The conclusion is that with these regulatory requirements, policyholders' money is kept safe.

Uploaded by

Nagendran Balasubramanian
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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How safe is My MONEY ???

SEPTEMBER 2006

AGENCY TRAINING

SAFEGUARD FOR POLICY HOLDERS MONEY

IMPORTANT SECTIONS

SEPTEMBER 2006

AGENCY TRAINING

Section 27 of Insurance Act


Investment of Assets

65% GOVERNMENT SECURITIES & 35% SPECIFIED STOCKS

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

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.
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.

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 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.

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 public interest or in the interest of the Insurer,or in the interest 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 as Additional Directors.

SEPTEMBER 2006

AGENCY TRAINING

Section 40 B of Insurance Act


Limitation of Expenses of Management in Life Insurance Business

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.

SEPTEMBER 2006

AGENCY TRAINING

Section 52 H of Insurance Act


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

In the interest 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.

SEPTEMBER 2006

AGENCY TRAINING

Section 54 of Insurance Act


Voluntary winding up

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 reconstruction of the company

SEPTEMBER 2006

AGENCY TRAINING

Yes, Your Money is Absolutely SAFE


SEPTEMBER 2006 AGENCY TRAINING

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