How safe your money wiith LIC of India?

1. How safe isHow safe is
My MONEY ???My MONEY ???

2. SAFEGUARDSAFEGUARD
FORFOR
POLICY HOLDERS MONEYPOLICY HOLDERS MONEY
IMPORTANT SECTIONSIMPORTANT SECTIONS

3. Section 27 of Insurance ActSection 27 of Insurance Act
Investment of AssetsInvestment of Assets
65% GOVERNMENT SECURITIES65% GOVERNMENT SECURITIES
&&
35% SPECIFIED STOCKS35% SPECIFIED STOCKS

4. Section 27C of Insurance ActSection 27C of Insurance Act
Prohibition for Investment of Funds outside INDIAProhibition for Investment of Funds outside INDIA
““ No Insurer shallNo Insurer shall directlydirectly
oror
indirectlyindirectly investinvest
outside INDIAoutside INDIA
THE FUNDS OF THE POLICYTHE FUNDS OF THE POLICY
HOLDER’’HOLDER’’

5. Section 29 of Insurance ActSection 29 of Insurance Act
““ Prohibition of Loans ”Prohibition of Loans ”
““No Insurer shall grant loans or temporaryNo Insurer shall grant loans or temporary
advancesadvances
either on hypothecation of property or oneither on hypothecation of property or on
personal security or otherwise , except loans onpersonal security or otherwise , except loans on
life policies issued by him within the surrenderlife policies issued by him within the surrender
value,value,
to any Director,to any Director,
Manager ,Manager ,
Managing Agent,Managing Agent,
Actuary,etc.”Actuary,etc.”

6. Section 31 B of InsuranceSection 31 B of Insurance
ActAct
““Power to restrict payment of excessivePower to restrict payment of excessive
remuneration”remuneration”
““Remuneration by way of Salary orRemuneration by way of Salary or
CommissionCommission
cannot be disproportionate according tocannot be disproportionate according to
normal standards prevailing in thenormal standards prevailing in the
insurance industry.”insurance industry.”

7. Section 34B of Insurance ActSection 34B of Insurance Act
““Power of Authority to appoint AdditionalPower of Authority to appoint Additional
Directors”Directors”
““ If affairs being conducted areIf affairs being conducted are
detrimental to thedetrimental to the
interest of policy holders then caninterest of policy holders then can
remove from office,with effect fromremove from office,with effect from
such date as may be specified in thesuch date as may be specified in the
order,any Directororder,any Director
or Chief Executive Officer,or Chief Executive Officer,
by Whatever name called,by Whatever name called,
of the Insurer.”of the Insurer.”

8. Section 34 C of Insurance ActSection 34 C of Insurance Act
““Power of Authority to appoint AdditionalPower of Authority to appoint Additional
Directors ”Directors ”
““If the authority is of opinion that in theIf the authority is of opinion that in the
public interest or in the interest of thepublic interest or in the interest of the
Insurer,or in the interest of his PolicyInsurer,or in the interest of his Policy
Holders it is necessary toHolders it is necessary to
do so,he may from time to time,bydo so,he may from time to time,by
order inorder in
writing appoint one or more personswriting appoint one or more persons
asas
Additional Directors.”Additional Directors.”

9. Section 40 B of Insurance ActSection 40 B of Insurance Act
Limitation of Expenses of Management inLimitation of Expenses of Management in
Life Insurance BusinessLife Insurance Business
““No Insurer shall , in respect of lifeNo Insurer shall , in respect of life
insurance business transacted by him ininsurance business transacted by him in
India,spendIndia,spend
as expenses of management in anyas expenses of management in any
calendar year an amount incalendar year an amount in
excess of the prescribed limits.”excess of the prescribed limits.”

10. Section 52 H of Insurance ActSection 52 H of Insurance Act
““Power of Central Government to acquirePower of Central Government to acquire
undertaking ofundertaking of
Insurers in certain cases.”Insurers in certain cases.”
““In the interest of the Policy Holders orIn the interest of the Policy Holders or
Share Holders of such Insurer,it isShare Holders of such Insurer,it is
necessarynecessary
to acquire the undertaking of suchto acquire the undertaking of such
Insurer theInsurer the
Central Government may, by notifiedCentral Government may, by notified
order,order,
Acquire the undertaking of suchAcquire the undertaking of such
Insurer.”Insurer.”

11. Section 54 of Insurance ActSection 54 of Insurance Act
““Voluntary winding up ”Voluntary winding up ”
““Notwithstanding anything contained inNotwithstanding anything contained in
thethe
Indian Companies Act , 1913 ( 7 ofIndian Companies Act , 1913 ( 7 of
1913 ),1913 ),
an Insurance company shall not bean Insurance company shall not be
wound upwound up
voluntarily except for the purpose ofvoluntarily except for the purpose of
affecting an amalgamation or aaffecting an amalgamation or a
reconstruction of the company”reconstruction of the company”

12. Yes,Yes,
Your MoneyYour Money
is Absolutelyis Absolutely
“ SAFE ”“ SAFE ”

13. Words Worth to Remember..!Words Worth to Remember..!
 ““Sadly, many people in this world spend theirSadly, many people in this world spend their
lives hoping and wishing for an exciting,lives hoping and wishing for an exciting,
interesting life. Deep down inside they’reinteresting life. Deep down inside they’re
secretly waiting for the day that their purpose insecretly waiting for the day that their purpose in
life will suddenly strike them like a bolt oflife will suddenly strike them like a bolt of
lighting. And until that big day arrives, theselighting. And until that big day arrives, these
individuals put off fully living… and all theindividuals put off fully living… and all the
while their lives are slowly passing them by.while their lives are slowly passing them by.
They’re living their life settling for less thanThey’re living their life settling for less than
they are capable of. And the tragic part is thatthey are capable of. And the tragic part is that
they know it.”they know it.”
- Michael Jeffreys- Michael Jeffreys