Section Text
Section 40C read with Sch. VI.- "We think that the minimum number of insurance agents for a special agent should be two and for a chief agent, six in the case of small companies, and twelve in the case of big companies. The special agent may at the same time be permitted to do personal business, but he should procure annually for the insurer at least business to the extent of fifty thousand rupees sum assured. The principal agent may also in certain circumstances be permitted to do personal business. Some relaxation in the case of principal agents doing head office work for foreign insurers should, in our opinion, be allowed for a limited period as in the Proviso in the proposed section 40A(4). The limitation of expenses regarding life insurance business should be brought into force from 1st January, 1951, while the limitation of expenses for general insurance business may be from 1st January, 1950. We think that the basic limitation in either case should be prescribed by rules made under the Act, but the rules so made should have due regard to the size and age of the insurers concerned. We also feel that all decisions connected with relaxations in the limits of expenses for insurers should be taken by the Controller himself, after consulting the Executive Committee of the relevant Insurance Council". -S. C. R. Gazette of India, 1950, Pt. II, S. 2. page 100.
1) Every insurer transacting life insurance business in India shall furnish to the Controller, within such time as may be prescribed, statements in the prescribed form certified by an actuary on the basis of premiums currently used by him in regard to new business in respect of mortality, rate of interest, expenses and bonus loading.
(2) After the 31st day of December, 1950, 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 and in prescribing any such limits regard shall be had to the size and age of the insurer and the provision generally made for expenses of management in the premium rates of insurers :
Provided that where an insurer has spent as such expenses in any year an amount in excess of the amount permissible under this sub-section, he shall not be deemed to have contravened the provisions of this section, if the excess amount so spent is within such limits as may be fixed in respect of the year by the Controller after consultation with the Executive Committee of the Life Insurance Council constituted under