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