insertion of  14 after part il of the principal act, the following part shall be inserted, namely:— new part hia "part iiia  insurance co-operative societiesinsurance 94a (j) every insurance co-operative society shall be deemed to be an insurer co-operative for the purposes of this act   5 society to be an insurer - (2) save as otherwise provided in this act, all the provisions applicable to an insurer being an indian insurance company shall, so far as may be, apply to an insurance co-operative society: provided that the authority may, by notification, direct that any of the provisions of this act,— 107 (a) shall not apply to any insurance co-operative society; or (b) shall apply to any insurance co-operative society only with such exceptions, modifications and adaptations as may be specified in the notification (3) a copy of every notification proposed to be issued under sub-section (/), shall be laid in draft before each house of parliament, while it is in session, for a total 15 period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the : "session or the successive sessions aforesaid, both houses agree in disapproving the issue of the notification or both houses agree in' making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued 20 only in such modified form as may be agreed upon by both the houses"  amendment of 15, in section 101a of the principal act, in sub-section (8), for clause (2); the following section 101a —_ clause shall be substituted, namely:— 'gi) "indian re-insurer" means an indian insurance company which has been granted a certificate of registration under sub-section (2a) of section 3 by the authority 25 to carry on exclusively the re-insurance business in india' amendment of 16 in section 114 of the principal act, in sub-section (2), clause (a) shall be omitted section 114  amendment of 17, in section 114a of the principal act, in sub-section (2),— section 114a, () for clause (a), the following clauses shall be substituted, namely:— "(a) the qualifications to be possessed by actuaries; x (aa) the matters including fee relating to the registration of insurers under section 3;"; (ii) in clause (g), for the words "fourth proviso", the words "fifth proviso" shall hoy be substituted; a ; (ii) after clause (i), the following clauses shall be inserted, namely:— 35 "(ia) the form in which a return showing the investments made out of the controlled funds shall be submitted by an insurer carrying on life insurance business urider sub-section (j) of section 28a; (éb) the form in which a return showing all the changes that occurred in the investments shall be submitted by an insurer carrying on life insurance business 40 under sub-section (2) of section 28a; (ic) the form in which a return showing the investments made out of assets shail be submitted by an insurer carrying on general insurance business under sub-section (/) of section 28b; (id) the form in which a return showing all the changes that occurred inthe 45 investments shall be submitted by an insurer carrying on general insurance "~~ business under sub-section (2) of section 28b; (ie) the form of the statement and the sum to be specified under subsection (2) of section 31b;"; (iv) after clause (v), the following clauses shall be inserted, namely:— "(va) the amount of commission, fee or as remuneration in any form not 5- exceeding thirty per cent to be paid or contract to be paid under sub-section (/) of section 42e; (vb) the requirements of capital, form of business and other conditions to act as an intermediary or insurance intermediary under sub-section (2) of section 42e; 10 (vc) the form of balance-sheet, as may be specified by the authority under sub-section (/) of section 49;"; (v) after clause (za), the following clause shall be inserted, namely:— "(zb) the manner of receipt of premium to be specified under sub-section (6) of section 64vb" - omission of schedules15 148 the first schedule, the second schedule, the third schedule and the fourth schedule to the principal act shall be omitted  statement of objects and reasons_'the insurance regulatory and development authority act, 1999 was passed by parliament in december, 1999 by which the insurance act, 1938, the life insurance corporation act, 1956 and the general insurance business (nationalisation) act, 1972 were amended to remove the exclusive privilege of nationalised insurance companies to transact life and general insurance business and allow for entry of private sector players in the insurance sector, it also provided for the setting up of a statutory regulatory authority to regulate, promote and ensure orderly growth of the insurance industry 2 the insurance regulatory and development authority has been established on the 19th april, 2000 the authority has made regulations in all major areas of operations in the insurance industry and matters connected therewith certificates of registration have been issued to twelve new private companies and some of them have already commenced insurance business 3 the insurance act, 1938 allows for only indian insurance companies registered under the companies act, 1956 to transact insurance business in india after registration with the insurance regulatory and development authority several representations have been received to allow entry of co-operatives into the insurance sector it is now proposed to amend the insurance act, 1938 to allow their entry and to make necessary provisions in this regard it is expected that the entry of co-operatives in the insurance sector would increase the insurance coverage, especially in rural areas, 4 for the smooth functioning of the insurance sector, some further amendments to the insurance act, 1938 are also required, the insurance (amendment) bill, 2001, inter alia, contains provisions relating to payment of commission and fee for insurance intermediaries, allowing flexibility in the eligibility qualifications for corporate agents, allowing a more flexible mode of payment of premium through credit cards, smart cards, internet, etc, to be specified by the regulations to be made by the authority, change in the allocation of surplus of life insurance business and consequential amendments for the smooth functioning of the sector 5, the bill seeks to achieve the above objects yashwant sinha new delhi; the 9th august, 2001  memorandum regarding delegated legislationclause 17 of the bill seeks to amend section 114a of the insurance act, 1938 to empower the authority to make regulations to provide for the qualifications to be possessed by actuaries; the matters including fee relating to the registration of insurers under section 3; the form in which a return showing the investments made out of the controlled funds shall be submitted by an insurer carrying on life insurance business under sub-section (/) of section 284a; the form in which a return showing all the changes that occurred in the investments shall be submitted by an insurer carrying on life insurance business under sub-section (2) of section 28a; the form in which a return showing the investments made out of assets shall be submitted by an insurer carrying on general insurance business under sub-section (j) of section 28b; the form in which a return showing all changes that occurred in the investment shall be submitted by an insurer carrying on general insurance business under sub-section (2) of section 28b; the form of the statement and the sum to be specified under sub-section (2) of section 31b; the amount of commission, fee or as remuneration in any form not exceeding thirty per cent to be paid or contract to be paid under sub-section (1) of section 425; the requirements of capital, form of business and other conditions to act as an intermediary or insurance intermediary under sub-section (2) of section 42e; the form of balance-sheet, as may be specified by the authority under sub-section (/) of section 49; and the manner of receipt of premium to be specified under sub-section (6) of section 64vb 2 the matters in respect of which regulations may be made are matters of procedure and administrative detail and it is not practicable to provide for them in the bill itself 3 the delegation of legislative power is, therefore, of a normal character  annexure extracts from the insurance act, 1938_ aor 1938)      definitions 2 in this act, unless-there is anything repugnant in the subject or context,— (j) "actuary" means an actuary possessing such qualifications as may be prescribed;     x (3) "approved securities" means— |     |     | x    |     |     ||------|------|------|------|------|(v) subject to the limitations contained in the proviso hereto, securities guaranteed fully as regards principal and interest by a provincial government in pakistan or charged on the revenues of any part of that domination, and debentures or other securities for money issued by or on behalf of the trustees of the port of karachi: provided that securities or debentures specified in item (v) shall be recognised as approved securities only for such purposes and for such period and subject to such conditions as may be prescribed explanation— in sub-clauses (i) and (iii) "government of a state" in relation to any period before the 1st november, 1956, means the government of a part a state; , |     |     | :    | ~    |     |     |     ||------|------|------|------|------|------|------|15, (1) the audited accounts and statements referred to in section 11 or sub-section submission of returns (5) of section 13 and the abstract and statements referred to in section 13 shall be printed, and four copies thereof shall be furnished as returns to the authority in the case of the accounts and statements referred to in section 11 or sub-section (5) of section 13 within six months and 'in the case of the abstract and statement referred to in section 13 within nine months from the end of the period to which they refer: provided that the said period of six months shall in the case of insurers having their principal place of business or domicile outside india and in the case of insurers constituted, incorporated or domiciled in india but also carrying on business outside india be extended by three months, and provided further that the central government may in any case extend the time allowed by this sub-section for the furnishing of such returns by a further period not exceeding three months |     | fy    |     |     |     ||------|-------|------|------|------|28a (/) every insurer carrying on life insurance business, shall every year, within thirty-one days from the beginning of the year, submit to the authority a return in the prescribed form showing as at the 31st day of march of the preceding year, the investments made out of the controlled fund referred to in section 27a, and every such return shall be certified by a principal officer of the insurer | retum       | of    ||-------------|-------|| investments |       || relating    | to    || controtled  |       || fund        | and   || changes     |       || therein    |       |(2) every insurer referred to in sub-section (/) shall also submit to the authority a return in the prescribed form showing all the changes that occurred in the investments aforesaid during each of the quarters ending on the last day of march, june, september and december within thirty-one days from the close of the quarter to which it relates, and every such return shall be certified by a principal officer of the insurer 28b (/) every insurer carrying on general insurance business, shall, every year, within thirty-one days from the beginning of the year, submit to the authority a return in the prescribed form showing as at the 31st day of march of the preceding year the investments made out of his assets referred to in section 27b, and every such return shall be certified by a principal officer of the insurer | returns     | of    ||-------------|-------|| investments |       || relating    | to    || assets      | and   || changes     |       || therein    |       |(2) every insurer referred to in sub-section (/) shail also submit to the authority a return in the prescribed form showing all the changes that occurred in the investments aforesaid during each of the quarters ending on the last day of march, june, september and december within thirty-one days from the close of the quarter to which it relates, and every such return shall be certified by a principal officer of the insurer, (3) every insurer shall submit, along with the returns referred to in sub-sections (/) and (2), a statement, where any part of the assets are in the custody of a banking company, from that company, and in any other case, from the chairman, two directors and a principal officer, if the insurer is a company, or from a principal officer of the insurer, if the insurer is not acompany, specifying the assets, which are subject to a charge and certifying that the other assets are held free of any encumbrance, charge, hypothecation or hien, and every such statement after the first shall also specify the charges created in respect of anyof those assets since the date of the statement immediately preceding, and, if any such charges have been liquidated, the date on which they were so liquidated |      |     ||-------|------|| power | to   |31b (1)   x  (2) every insurer shall, before the close of the month following every year, submit to restrict payment' of excessive  remuneration, the authority a statement, in the form specified by the regulations made by the authority, showing thé remuneration paid, whether by way of commission or otherwise, to any person in cases where such remuneration exceeds the sum of five thousand rupees in that year |     |     |     |     |     ||------|------|------|------|------| commission and rebates and licensing of agents40 (1) no person shail, after the expiry of six months from the commencement of this act, pay or contract to pay any remuneration or reward whether by way of commission |         | prohibition    | of    ||---------|----------------|-------|| payment | by             | way   || of      | commission     |       |or otherwise for soliciting or procuring insurance business in india to any person except an insurance agent or a principal, chief or special agent | or        | otherwise    ||-----------|--------------|| procuring | busi-        || ness,     |              |     (2a) save as hereinafter provided, no insurance agent shall be paid or contract to be paid by way of commission or as remuneration in any form any amount in respect of any policy not effected through him: provided that where a policy of life insurance has lapsed, and it cannot under the terms and conditions applicable to it be revived without further medical examination of the person whose life was insured thereby, an insurer, after giving by notice in writing to the insurance agent through whom the policy was effected if such agent continues to be an agent of the insurer an opportunity to effect the revival of the policy within a time specified in the notice, may pay to another insurance agent who effects the revival of the policy an amount calculated at a rate not exceeding half the rate of commission at which the agent through whom the policy was effected would have been paid had the policy not lapsed, on the sum payable on revival of the policy on account of arrear premiums (excluding any interest on such arrear premiums) and also on the subsequent renewal premiums payable on the policy      42,  ®     licensing of insurance agents 41 of 1999, » (3) a licence issued under this section, after the date of the commencement of the insurance regulatory and development authority act, 1999, shall remain in force for a period of three years only from the date of issue, but shall, if the applicant, being an individual does not, or being a company or firm any of its directors or partners does not, suffer from any of the disqualifications mentioned in clauses (b), (c), (d), (e) and (f) of sub-section (4) and the application for renewal of licence reaches the issuing authority at least thirty days before the date on which the licence ceases to remain in force, be renewed for a period of three years at any one time on payment of the fee determined by the regulations made by the authority which shall not be more than rupees two hundred and fifty, and additional fee of an amount determined by the regulations not exceeding rupees one hundred by way of penalty, if the application for renewal of the licence does not reach the issuing authority at least thirty days before the date on which the licence ceases to remain in force; ed  a   ea (4) the disqualifications above referred to shall be the following:-—   %  ak (e) that he does not passes the requisite qualifications and practical training for a period not exceeding twelve months, as may be specified by the regulations made by the authority in this behalf;      49, (1) no insurer, being an insurer specified in sub-clause (a) (i) or sub-clause (5) of clause (9) of section 2, who carries on the business of life insurance or any other class or restriction on dividend's and bonuses sub-class of insurance business to which section 13 applies, shail, for the purpose of declaring or paying any dividend to shareholders or any bonus to policy-holders or of making any payment in service of any debentures, utilize directly or indirectly any portion of the life insurance fund or of the fund of such other class or sub-class of insurance business, as the case may be, except a surplus shown in the valuation balance-sheet in form j as set forth in the fourth schedule submitted to the authority as part of the abstract teferred to in section 15 as a result of an actuarial valuation of the assets and liabilities of the insurer; nor shall he increase such surplus by contributions out of any reserve fund or otherwise unless such contributions have been brought in as revenue through the revenue account applicable to that class or sub-class of insurance business on or before the date of the valuation aforesaid, except when the reserve funds is made up solely of transfers from similar surpluses disclosed by valuations in respect of which returns have been submitted to the authority under 6 of 1912 section 15 of this act or to the central government under section 11 of the indian life assurance companies act, 1912 : provided that payments made out of any such surplus in service of any debentures shall not exceed fifty per cent of such surplus including any payment by way of interest on the debentures, and interest paid on the debentures shall not exceed ten per cent of any such surplus except when the interest paid on the debentures is offset against the interest credited to the fund or funds concemed in deciding the interest basis adopted in the valuation disclosing the aforesaid surplus:  provided further that the share of any surplus allocated to or reserved for the shareholders (including any amount for the payment of dividends guarantéed to them, whether by way of first charge or otherwise) shall not exceed seven and a half per cent of such surplus (2) for the purposes of sub-section (/), the actual amount of income-tax deducted at source during the period following the date as at which the last preceding valuation was made and preceding the date as at which the valuation in question is made may be added to such surplusafter deducting an estimated amount for income-tax on such surplus, such addition and deduction being shown in paragraph 8(/) of the abstract prepared in accordance with part i of the fourth schedule to this act       partiv a re-insurance101a (/)      (8) in this section,— re-insurance with indian te-insurers      '(i) "indian re-insurer" means an insurer specified in sub-clause (b) of clause (9) of section 2 who carries on exclusively re-insurance business and is approved in this behalf by the central government    7k x 114 (i)     % e power of central government (2) in particular and without prejudice to the generality of the foregoing power, such to make rules rules may prescribe— (a) the qualifications to be possessed by actuaries;       114a (/)      power of authority to make regulations (2) in particuiar, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:— (a) the matters including fee relating to the registration of insurers under section 3;      ed (g) the manner in which an abstract of the report of the actuary to be specified under the fourth proviso to sub-section (/) of section 13;  ™ %    'the first schedule (see section 11) regulations and forms for the preparation of balance sheet parti regulations1 the balance-sheet required to be prepared in respect of every class of business carried on by an insurer is in the form in which it is set out in part il of this schedule (form a), appropriate to a case where the insurer maintains a separate fund in respect of life insurance  business 2 the balance-sheet of life insurance business shall be prepared as a separate document the balance-sheet of any class of business may be prepared as a separate document instead of being incorporated by the addition of columns and headings in the general balancesheet, but the totals of each such separate balance-sheet (showing the total assets of the class of business, the balance at the credit of the life insurance fund or other separate fund - or account, the amount of shareholders' undivided profits, and outstanding liabilities) must in any case be incorporated in the general balance-sheet 3 if any combined balance-shect is for any purpose issued by an insurer, it shall be in accordance with the form set outin this schedule, and there shall not be inchided among the assets shown in any such combined balance-sheet any amount in respect of any holding in or advance to any insurer whose assets and liabilities have been incorporated therein every combined balance-sheet must show clearly on the face thereof that it is a combined balancesheet and must set out fully the name of every insurer whose assets and liabilities have been incorporated therein; if the assets and liabilities of any person not being an insurer are included in a combined balance-sheet the fact must be stated thereon  4, where any guarantee has been given by an insurer (otherwise than in the ordinary course of re-insurance business) in respect of the policies of any other insurer, the balancesheet of the insurer by whom the guarantee was given must show clearly the name of every insurer whose policies have been so guaranteed and the extent of the guarantee: provided that this regulation shall not apply where a combined balance-sheet is issued incorporating the assets and liabilities of the insurer whose policies are guaranteed 5, where any part of the assets of an insurer is deposited in any place outside india as secutity for the owners of policies issued in that place, the balance-sheet shall state that part of the assets has been so deposited, and if any such part forms part of the life insurance fund, shall show the amount thereof and the place where it is deposited where any combined balance-sheet is issued by an insurer for any purpose, the information required by this regulation shall be shown in the aggregate in respect of all the insurers whose assets and liabilities have been incorporated in the balance-sheet - 6 there shall be appended to the balance-sheet a statement in form aa as set out in part il of this schedule showing the market value and the book value of the assets in india 7, every balance-sheet shall contain the following certificates, namely:— (aja certificate signed by the same persons as are required by this act to sign , the balance-sheet explaining how the values as shown in the balance-sheet of the investments in stocks and shares have been arrived at, and how the market value thereof has been ascertained for the purpose of comparison with the values so shown; (b) a certificate signed by the same persons as are required by this act to sign the balance-sheet and signed also, so far as respect the value of any iterns shown in the balance-sheet under the heading of "reversions and life interests", by an actuary, certifying that the values of all the assets have been reviewed as at the date of the balance-sheet, and that in their belief the assets set forth in the balance-sheet are shown in the aggregate at amounts not exceeding realisable or market value under the several headings—loans", "reversions and life interests", "investments", agent's balances", "outstanding premiums", "interests, dividends and rents out-standing", "interest, dividends and rents accruing but not due", "amounts due from other persons of bodies carrying on tnsurance business", sundary debtors", "bills receiv- able", "cash" and the several items specified under "other accounts": provided that if the persons signing the certificate are unable to certify that the assets set forth in the balance-sheet are so shown as aforesaid, a full explanation of the bases upon which the values shown in the balance-sheet have been assessed shall be given in the certificate; (c) where the balance-sheet relates either wholly or in part to life insurance business, a certificate signed by the same persons as are required by this act to sign the balance-sheet and by the auditor certifying that no part of the assets of the life insurance fund has been directly or indirectly applied in contravention of the provisions of this act relating to the application and investment of life insurance funds; and (d) certificate signed by the auditor (which shall be in addition to any other certificate or report which he is required by law to give with respect to the balancesheet) certifying— (j that he has verified the cash balance and the securities relating to the insurer's loans, reversions and life interests, and investments, gi) to what extent, if any, he has verified the investments and transactions relating to any trusts undertaken by the insurer as trustee; and , (ii) in the case ofa combined balance-sheet, that he has audited the balance-sheet and accounts of every insurer whose assets and liabilities are incorporated therein, or that any such balance-sheet and accounts which have not been audited by him have been certified by independent auditors the said certificate shall contain a reference to such reservations, if any, as may have been made by any auditor upon any report or certificate given by him with respect to the balance-sheet and accounts of any insurer whose assets and liabilities are incorporated in the combined balance-sheet 8 if the values shown in the balance-sheet in respect 'of "holdings in subsidiary companies" or "house property (i) in india (i) out of india" have been increased since the jast previous balance-sheet, the certificate required by paragraph (b) of the last foregoing regulation shall state the amount of every increase not solely due to the cost of subsequent additions o7, as respects holdings in controlled companies, to increased profits, and shall contain an explanation of the reason therefor ' 9 for the purpose of this schedule the following expressions have the meanings hereby respectively assigned to them, namely:— {a) "combined balance-sheet" includes any combined statement made by an insurer or assets and liabilities in the form of a balance-sheet which includes the assets and liabilities, of any other insurer; and (b) "market value" means as respects any asset the market value thereof as ascertained from published market quotations, or if there be no such value, its fair value as between a willing buyer and a willing seller  form of balance-sheet balance-sheet ofc 19| life          | and           | =          | other        | life              | and         | =           | other    ||---------------|---------------|------------|--------------|-------------------|-------------|-------------|----------|| annuity       | classes       | total      | annuity      | -                 | classes     | total       |          || business      | _             | of         | business     | business          | _           | of          | business || qd)           | (2)          | ()         | (2)         |                   |             |             |          || rs           | p            | rs        | p           | rsp             | rsp       | rsp       | rsp    || shareholders' | capital       | loans:-    |              |                   |             |             |          || (each         | class         | to         | be           | stated            | on          | mortgages   | of       || separately)  | perty         | within     | india       |                   |             |             |          || authorised:   | on            | mortgages  | of           | pro-              |             |             |          ||              | perty         | outside    | india       |                   |             |             |          || shares        | of            | rs         |             |                   |             |             |          || each          | rs           |            |              |                   |             |             |          || on            | security      | of         | munici-      |                   |             |             |          || pal           | and           | other      | public       |                   |             |             |          || subscribed   | rates        |            |              |                   |             |             |          || seestee       | shares        | of         | rs           | on                | stocks      | and         | shares   || each          | rs           |            |              |                   |             |             |          || called        | up:           |            |              |                   |             |             |          || on            | insurers'     | policies   |              |                   |             |             |          || within        | their         | surrender  |              |                   |             |             |          || value        |               |            |              |                   |             |             |          || on            | personal      | security  |              |                   |             |             |          || reserve       | of            | contin-    | to           | subsidiary        | companies   |             |          || gency         | accounts      | (a):       | (other       | than-reversionary | (/)        |             |          || investment    | reserve       | reversions | and          | life              |             |             |          || account,      | profit        | and        | interests    | purchased        |             |             |          || loss          | appropriation | loans      | on           | reversions        | and         |             |          || account       | balance,      | :          | 'life        | interests'       |             |             |          || balances      | of            | funds      | and          |                   |             |             |          || accounts:     |               |            |              |                   |             |             |          || life          | insurance     | fund-      | debentures   | and               | debenture   | stocks      | of       || subsidiary    | reversionary  | companies  | (f)         |                   |             |             |          || (i)           | business      | in         | india-       |                   |             |             |          || {ii)          | business      | outside    | india        | ordinary          | stocks      | and         |          || shares        | of            | subsidiary |              |                   |             |             |          || fire          | insurance     | business   | reversionary | companies         |             |             |          || account      | (            |            |              |                   |             |             |          || marine        | insurance     | business   |              |                   |             |             |          || account,      | miscellaneous | loans      | to           | subsidiary        | re-         |             |          || insurance     | business      | account    | (m)         | versionary        | companies   | (f),        |          || other         | accounts,     | if         | any          | investments:      |             |             |          || {to           | be            | specified) | ()          | deposit           | with        | the         | reserve  || pension       | or            | superan-   | bank         | of                | india       | (securities |          || nuation       | accounts      | (8)       | to           | be                | specified) |             |          || debenture     | stock         | per        | indian       | government        |             |             |          |come sessssseesseee  securities state govern- loans and advances ment securities, british, [co ee british colonial and british dominion government securities - |               | foreign      | government    ||---------------|--------------|---------------|| securities,   | indian       | mu-           || nicipal       | securities  |               || british       | and          | colonial      || estimated     | liability    | in            || respect       | of           | outstanding   || claims,       | whether      | due           || intimated     | (d)         |               || securities   |              |               || foreign       | securities  |               || bonds,        | debentures,  |               || annuities     |              |               || due           |              |               || and           |              |               || unpaid        |              |               || (¢)          |              |               || outstanding   |              |               || dividends     |              |               || stocks        |              |               || and           |              |               || other         |              |               || securities    |              |               || whereon       | interest     | is            || guaranteed    | by           | the           || government    | or           | a             || government   |              |               || amounts       | due          | to            || persons       | or           | bodies        || carrying      | on           | insurance     || business     | (c)         |               || sundry        | creditors    | (in-          || cluding       | outstanding  |               || and           | accruing     | expenses      || and           | taxes        | (c)          || bonds,        | debentures,  |               || stocks        | arid         | other         || whereon       |              |               || interests     | is           | guaranteed    || the           |              |               || british       |              |               || or            |              |               || any           |              |               || colonial      |              |               || government   |              |               || other         |              |               || sums          |              |               || owing         |              |               || by            |              |               || the           |              |               || insurer       |              |               || (particulars) |              |               || to            |              |               || be            |              |               || given         |              |               || (c)          |              |               || contingent    |              |               || liabilities   |              |               || (to           |              |               || be            |              |               || specified)    |              |               || (c)          |              |               || bonds,        | debentures,  |               || stocks,       | and          | other         || securities    | whereon      |               || interest      | is           | guaranteed    || by            | any          | for-          || eign          | government  |               || debentures    |              |               || of            |              |               || any           |              |               || railway       |              |               || in            |              |               || india        |              |               || debentures    |              |               || of            |              |               || any           |              |               || railway       | out          | of            || preference    | or           | guaranteed    || shares        | of           | any           || india,        | brought      | forward      || preference    | or           | guaranteed    || shares        | of           | any           || out           | of           | india        || railway       | ordinary     |               || stocks        |              |               || (i)           |              |               || in            |              |               || india         |              |               || (ii)          |              |               || out           |              |               || of            |              |               || india        |              |               || other         | debentures   | and           || debenture     |              |               || stock         |              |               || of            |              |               || companies     |              |               || incosporated  | (i)          | in            || i)            | out          | of            || other         | guaranteed   | and           || preference    |              |               || stocks        |              |               || and           |              |               || shares        |              |               || of            |              |               || companies     | incorporated |               || {)            | in           | india         || india        |              |               || other         | ordinary     | stocks        || and           | shares       | of            || incorporated  |              |               || (i)           |              |               || in            |              |               || india         |              |               || ii)           |              |               || out           | of           | india        || holdings      |              |               || in            |              |               || subsidiary    |              |               || companies     |              |               || (f)           |              |               || house         |              |               || property      |              |               || ()            |              |               || in            |              |               || india         |              |               || (ii)          |              |               || out           |              |               || of            | india       |               || freehold      |              |               || and           |              |               || leasehold     |              |               || ground        | rents        | and           || charges      |              |               || agent's       | balances     |               || outstanding   | premiums     |               || (g)           | @           |               || cnterests     |              |               || dividends,    |              |               || and           |              |               || "kents        |              |               || outstanding   |              |               || (d)          |              |               || interest,     |              |               || dividends     |              |               || and           |              |               || rent          |              |               || accruing      |              |               || but not       |              |               || due           | (d)         |               |amounts due from ot)  persons or bodies carry: insurance business (4) sundry debtors (i) bills receivable cash: at bankers on deposit acco at bankers on current account and in hand other accounts (to be specified) (x)  assets and liabilities, shareholders' capital and reserves, not allocated to any class of business specified in column (1) must be shown in column (2)  notes(a) the reserves or contingency accounts must be separately stated (b) if the insurer has not full and unrestricted control of the assets constituting the pension or superannuation accounts, either those accounts and the assets and liabilities relating thereto must be omitted from the balance-sheet or the assets of which the insurer has not such control must be clearly indicated on the face of the balance-sheet : (c) if the insurer has deposited security as cover in respect of any of these items, the amount and nautre of the securities so deposited must be clearly indicated on the face of the balance-sheet (d) these items are or have been included in the corresponding items in the revenue or profit and loss account outstanding and accruing interest, dividends and rents must be shown after deduction of income-tax or the income-tax must be provided for amongst the liabilities on the other side of the balance-sheet (e) such items as amount of liability in respect of bills discounted, uncalled capital of subsidiary companies, uncalled capital of other investments, etc, must either be shown in their several categories under the heading "contingent liabilities" or the appropriate items on the assets side must be set out in such details as will clearly 'indicate the amount of the uncalled capital : (f) as respects life and annuity! business full particulars of holdings in and loans to subsidiary companies must be stated, giving the name of each company, the number and description of each class of shares held, the amounts paid-up thereon, and the value at which the holdings in each company stand in the balance-sheet (g) either this item must be shown net or the commission must be provided for amongst the liabilities on the other side of the balance-sheet (h) the aggregate amount owing by a subsidiary company or subsidiary-~~ companies is to be shown separately from all other assets and the aggregate amount owing to a subsidiary company or subsidiary companies is to be shown separately from all other liabilities @) amounts due from directors and officers must be shown separately () no amounts must be entered under this heading unless fully secured if not fully secured, the amounts must be included under the heading "sundry debtors" (k) under this heading must be included such items as the following, which must a  be shown under separate headings suitably described: office furniture, good will, - | preliminary, formation and organisation expenses, development expenditure account, discount on debentures issued, other expenditure carried forward to be written off in : future years, balance being loss on profit and loss appropriation account, etc the amounts included in the balance-sheet must not be in excess of cost 4 (d under the head "other accounts, if any (to be specified)" on the left hand 4 side, fines realised from the staff and their contribution towards the provident fund, if : any, should be shown under separate sub-heads see o (m) where the insurer is required to maintain a-separate account in respect of q any sub-class of miscellaneous 'insurance business this heading is to be split up accordingly class of asset book value | market value | remarks as per (a) as per (b) | as per (c) below below below rs rs, government of india securities ----- (i) indian state government securities  indian municipal, port and improvement (2) @) trust securities including debentures  debentures of indian railways -++-- (4) guaranteed and preference shares of indian ~ (5) railways oo eee c cence een eee e ane annuities of indian railways  pe eteees ordinary shares of railways in india  (6) ) other debentures of concerns in india  (8) other guaranteed and preference shares of (9) concerns in india 210 cece cece eee other ordinary shares of concerns in india  loans on the company's policies effected in (10) ay india and within their surrender value  loans on mortgage of property in india  7 (12) loans on personal security to persons (13) domiciled and resident in india - other loans granted i in india (particulars to be (4) cr cots ) ce land and house property in india  wees a5) cash on deposit in banks in india +++ (16) cash in hand and on current account in banks q17) inindia  2 cece cece eee teenie agent's balances and outstanding premiums  (18) interest, dividends and rents either outstanding a9) or accrued but not due 655 betes other assets in india (to be specified)  (20) the statement shall show— (a) the value for which credit is taken in the balance-sheet for each of the abovementioned classes of assets, (b) the market value of such of the abovementioned classes of assets as has been ascertained from published quotations after deduction of accrued interest included in market prices in those cases where accrued interest is included elsewhere in the balance-sheet, (c) how the value of such of the abovementioned classes of assets as has not been ascertained from published quotations has been arrived at, and (d) the rates of exchange at which the values of the assets other than in rupee currency have been converted into rupees the market values need not be shown separately where they are not less than the book values and_a certificate to that effect is appended to the statement no amounts on account of any of the following items may be entered in the statement:— goodwill preliminary expenses, formation, organisation or development expenses commission or discount on shares or debentures issued commuted commission expenditure carried forward to be written off in future years  thesecond schedule (see section 11) regulations and forms for the preparation of profit and loss accounts part 1 regulations1: the items on the income side of the profit and loss account and profit and loss appropriation account must relate to income whether actually received or not, and the items on the expenditure side must relate to expenditure whether actually paid or not 2 deductions from interest, dividends and rents to be shown in respect of income-tax must include all amounts in respect of indian (central) income-tax whether or not it has been or is to be deducted at source or paid direct 3 the interest, dividends and rents less income-tax thereon shown in the revenue accounts for any classes of business other than life insurance business, including annuity business may, if the insurer so desires, be included with the corresponding items in the profit and loss account  fromb form of prorir and loss account profit and loss accoune of for the year ended 19rs pb rs p indian (central) taxes on the insurer's interest, dividends and rents (not profit's (not applicable to any particular applicable to any particular fund or pund or account) 0 account) rs 06 expenses of management (not appli- less- income-tax thereon rs+ cable to any particular fund or profit on realisation of investments account)  eee (not credited to reserves or any particular fund or account) 06 loss on realisation of investments (not appreciation of investments (not charged to reserves or any particular credited to reserves or any particular fund or accound  fund or account)  depreciation of investment (not profit transferred from revenue charged to reserves or any particular account (details to be given) 4 fund or account)  loss transferred from revenue accounts (details to be given)   transfer fees + other income (to be specified)  other expenditure (to be specified)  balance for the year carried to balance being loss for the year carried to appropriation account  appropriation accounl 0 if any sum has been deducted from this item and entered on the assets side of the balance-sheet, the amount must be shown separately  form c form of prosir and loss appropriation 'accountprofit and loss appropriation account of wo for the year ended  19,  "ers p rs p balance being loss brought forward balance brought forward from fast from last year : ) years " balance beingloss for the year brought less-dividends since paid in respect from profit and loss account (as in of last year {to be specified and if form, b)- wesc ; "free of tax" to be so stated) dividends paid during' the year on account of the current year (to be specified and if "free of tax" to be so stated)  transfers to any particular funds or balance for the year brought from accounts (details to be given)  profit and loss account (as in form b) ooieeeseeseesesesesneee balance at end of the year as shown in balance being loss at end of the year the balance-sheet csseceees as shown in the balance-sheet  note—this item may be shown on the other side of the account if preferred  the third schedule(see section 11) ;  regulations and forms for the preparation of revenue accounts part i " regulations1 form d is, as set out in part il of this schedule, appropriate for life insurance _ business, but a separate revenue account must be prepared for every class or sub-class of business in respect of which the insurer is required to maintain a separate account 2 form fis, as set out in part ii of this schedule, appropriate for fire insurance and for marine insurance business a separate revenue account in the same form must be prepared for miscellaneous insurance exclusive of any sub-class of such business in respect of which the insurer is required to maintain a separate account for a sub-class of miscellaneous insurance in respect of which the insurer is required to maintain a separate account, form d or form f as set out in part il of this schedule may be used with such modifications as the authority may authorise 3 if any combined revenue account is for any purpose issued by an insurer it must be ii accordance with the forms specified in this schedule and must clearly show on the face thereof that it is a combined revenue, account, and must set out fully the name of every insurer required to make separate returns under this act whose revenue and expenditure have been included therein; if the revenue and expenditure of any person not being an insurer are included in a combined revenue account, the fact must be stated therein 4, the items on the income side of the revenue account must relate to income whether actually received or not, and the items on the expenditure side must relate to expenditure whether actually paid or not 5 re-insurance premiums, whether on business ceded or accepted, are to be brought into account gross (i¢, before deducting commissions) under the head of premiums 6 as respects life insurance business the following statements shall be furnished to the authority every year showing details provided for in a form pertaining thereto:— (a) a statement in form dd as set forth in part ii of this schedule (b) a statement in form ddd as set forth in part i of this schedule, (c) a statement in form dddd as set forth in part ii of this schedule 7, in addition to the revenue account, information shall be supplied of the gross premium written direct in india, that is, the premium income without taking into account premiums on re-insurances ceded or accepted, for every class or sub-class of business in respect of which the insurer is required {o maintain a separate account 7a in addition to the revenue account, information shall also be supplied of the gross claims payable directly by the insurer in india (that is to say, the claims without taking into account claims on re-insurance ceded or accepted) separately for fire, marine and miscellaneous insurance business and the provisions of sections 20 and 116a shall not apply to any information so supplied 8 any office premises which form part of the assets of a life insurance fund must be treated as an interest earning investment, and accordingly, in the revenue account for life insurance business a fair rent for the premises must be included under the heading "interest, dividends and rents" and in the revenue account for every class of business for which the premises are used proper chargés for the use thereof must be included under the heading "expenses of management" 9 where an insurer carries on the business of life insurance in conjunction with any other class of insurance business the expenses of management charged to the life insurance revenue account must not include more than a reasonable proportion of the common expenses and in particular, no such account must be charged with more than a fair sum for the use of any office premises having regard to the income from the various classes of business carried on and to the extent to which the premises are used for the purposes of each class of business 10 deductions from interest, dividends and rents in respect of income-tax must include all income-tax charged on such income whether or not it has been or is to be deducted at source or paid direct; the income-tax to be shown as so deducted in the life insurance revenue account is indian (central), indian (state), united kingdom, foreign and dominion income-tax, but the income-tax to be shown as deducted in revenue accounts of any other classes of business is indian (central) income-tax only  part ii forms form d form of revenue account applicable to life insurance businessrevenue account of for the year ended 19 , in respect of business busi- | busi- | total busi- | busi- | total ness ness: ness ness —_— within { out of - within | out of india | india india | india (a) (a) rs rs, rs rs, rs | rs claims under policies balance of fund at the (including provision for beginning of the year  claims due or intimated), :  less re-insurances—  premiums, less reinsurances— by death  ae  ; (i) first year premiums, by maturity  where the maximum annuities, less repremiums-paying period insurances  (g) is— two years busi- | busi- | total busi- | busi- | total ness | ness ness | ness - within | out of —_ within | out of india | india india | india @ (a) rs | rs | rs rs | rs | rs three = years-——-—- four years five years-————— surrenders (including surrenders of bonus), less re-insurances six years———— bonuses in cash, less reinsurances seven years— eight  years———-— nine yeats—————— bonuses in reduction of premiums, less reinsurances ten years eleven years————~ twelve years or over expenses of management (b)— (including throughout life)— 1 (a) commission to gi) renewal premiums _ insurance agents (less that (ii) single premiums  on re-insurances) consideration for annuities granted, less reinsurances (c) +++  (b) allowances and commission [other than commission included in sub-item (a) preceding] interest, | dividends and rents 2, salaries, etc (other than to agents and those contained jn item no 1) --++- less—income-tax thereon @ : 3 travelling expenses  registration fees 4 directors' fees other income:(to be specified) () 5 auditors' fees  6 medical fees loss transferred to profit and loss account : 7, lawcharges 'transferred from appropria- 8 advertisements tion account 9, printing and stationery - 10 other expenses of management accounts to be specified li, rents for offices belonging to and occupied by the insurer 12 rents of other offices occtipied by the insurer bad debts united kingdom, indian, dominion and foreign taxes other expenditure {to be specified) +++6+- profit transferred to profit and loss account —— balance of fund at the end of rs the year as shown in the balance-sheet rs  notes(a) these columns apply only to business the premiums in respect of which are ordinarily paid outside india if any question arises whether any premiums are ordinarily paid outside india, the authority shall decide the question and his decision shall be final (b) if any sum has been deducted from this item and entered on the assets side of the balance-sheet, the amount so deducted must be shown separately under this item the 'salary paid to the managing agent or managing director shall be shown separately from the total amount paid as salaries to the remaining staff (c) all single premiums for annuities, whether immediate or deferred, must be included under this heading (d) indian, united kingdom, foreign and dominion income-tax on interest, dividends and rents must be shown under this heading less any rebates of income-tax recovered from the revenue authorities in respect of expenses of management the separate heading on the other side of the account is for united kingdom, indian, foreign and dominion taxes, other than those shown under this item (e) under the head "other income" fines, if any, realised from the staff must be shown separately all the amounts received by the insurer directly or-indirectly whether {rom his head office or from any other source outside india shall also be shown separately in the revenue account except such sums as properly appertain to the capital account (a in the case of an insurer having his principal place of business outside india the expenses of management for business out of india and total business need not be split up into the several sub-heads, if they are not so split up in his own country (g) where the maximum premiums-paying period includes a fraction of a year, such fraction shall be ignored for the purposes of this revenue account  classified statement of life insurance policies of ro campany,for the year ending rene d9 esses  new life insurance business in respect of total life insurance which a premium has been paid in the year business in force at" end of the year number sumsin- single premiums ofpolisured and (including considera- yearly number sums in- premium _ cies annuities tion forimmediate —_ renewal of sured with - income for perannor deferred annupremium policies bonuses which um ities and all other income and credit has  premiums paid at annuities —_ been taken the outset where no perannum - in the subsequent premium revenue is payable) account rs rs, rs rs ~ rs ordinary policies in india  out of india total annuity contracts, etc in india out of indi: total group insurance policies tn india out of indi: total 'the amount should be stated fo the nearest rupees and after deduction of re-insurances  form ddd additions to and deductions from policies of the company for the year ending 19| ordinary                             | life         | insurance    ||--------------------------------------|--------------|--------------|| policies                             |              |              || insuring                             |              |              || money                                |              |              || to                                   |              |              || annuities                            |              |              || be                                   |              |              || paid                                 |              |              || on                                   |              |              || death                                |              |              || or                                   |              |              || sur-                                 |              |              || ,                                    |              |              || vivance                              |              |              || no                                  |              |              || sum                                  |              |              || reversionary                         |              |              || |no                                 |              |              ||                                     |              |              || annuity                              |              |              || assured                              |              |              || bonus                                |              |              || per                                  |              |              || additions                            |              |              || annum                                |              |              || rs                                  |              |              || rs                                  |              |              || rs,                                  |              |              || (1)                                  |              |              || policies                             |              |              || at                                   |              |              || beginning                            |              |              || of                                   |              |              || year                                 |              |              || --------++---r-een----nernon         |              |              || meron                                |              |              || (2)                                  |              |              || new                                  |              |              || policies                             |              |              || received                             |              |              || --------rr------err---ceernsrnonnen= |              |              || (3)                                  |              |              || old                                  |              |              || policies                             |              |              || revived                              |              |              || ----                                 |              |              || -                                    |              |              || (4)                                  |              |              || old                                  |              |              || policies                             |              |              || changed                              |              |              || and                                  |              |              || increased                            |              |              || --------¢------enennn-e              |              |              || nee                                  |              |              || (5)                                  |              |              || bonus                                |              |              || additions                            |              |              || allotted                             |              |              || aoncanenennneeeseene                 |              |              || total                                |              |              ||                                     |              |              || discontinued                         |              |              || during                               |              |              || year'                                |              |              || (6)                                  |              |              || by                                   |              |              || death                                |              |              || (7)                                  |              |              || by                                   |              |              || survivance                           |              |              || or                                   |              |              || the                                  |              |              || happening                            |              |              || of                                   |              |              || the                                  |              |              ||                                     |              |              || ~                                    |              |              || contingencies                        |              |              || insured                              |              |              || against                              |              |              || other                                |              |              || than                                 |              |              || death                                |              |              || ------------~-                       |              |              || (8)                                  |              |              || by                                   |              |              || expiry                               |              |              || of                                   |              |              || term                                 |              |              || under                                |              |              || temporary                            |              |              || insurances                           |              |              || ---------------                      |              |              || (9)                                  |              |              || by                                   |              |              || surrender                            |              |              || of                                   |              |              || policy                               |              |              || ---                                  |              |              || _                                    |              |              || (10)                                 | by           | surrender    || (il)                                 |             | by           || (12)                                 |              |              || by                                   |              |              || change                               |              |              || and                                  |              |              || decrease                             |              |              || _                                    |              |              || a                                    |              |              || (13)                                 |              |              || by                                   |              |              || being                                |              |              || not                                  |              |              || taken                                |              |              || up                                   |              |              || -                                    |              |              || total                                | discontinued |              || total                                | existing     | at           |a separate statement must be given in respect of each class of life insurance business for which a separate revenue account is submitted and all amounts stated shall be total gross amount without taking into account re-insurances ceded or accepted insurers having their principal place of business in india shall give the information required in the form separately for business transacted in india and business transacted outside india and insurers having their principal place of business outside india will furnish information regarding business transacted in india only particulars of the policies forfeited or lapsed in the last year under review, and of policies revived and reinstated for full benefits, classified according to the year in which they were issued year in which the policies numberof  suminsured © number of sum insured were issued 4 policies under polipolicies under poliforfeited cies in revived and cies in column or lapsed column 2 reinstated for 4 full benefits 1 2 3 4 5 rs, ' rs year ending 19, being the year under review - year ending 9, being the year previous to ' that under review and so on, the number of and sum insured under policies forfeited or lapsed in the last year under review being stated after classification according to each of the preceding years in which they were issued a separate statement must be given in respect of each class of life insurance business for which a separate revenue account is submitted and all amounts stated shall be total gross amounts without taking into account reinsurances ceded or accepted insurers having their principal place of business in india shall give the information required in the form separately for business transacted in india and business transacted outside india and insurers having their principal place of business outside india will furnish information regarding business transacted in india only  form f form of revenue account applicable to fire insurance business marine insurance business and miscellaneous insurance businessrevenue account offor the year ended 19, in respect of  business rs ' rs claims under policies, iess re-insu- balance of account at beginning of the rances (a)(d): year: paid during the year rs reserve for unexpired risks rs total estimated liability in respect of additional reserve (if any) rs, outstanding claims at end of the year whether due or intimated rs premiums, less re-insurances (d) total interest, dividends and rents rs rs rs  less—income-tax thereon commission on re-insurancesceded :-- other income (to be dpecified) (e) loss transferred to profit and loss accoun transfer from appropriation account less—outstanding at end of previous year (b} commission on direct business commission on re-insurances accepted expenses of management (c) bad debts united kingdom, indian, dominion and foreign taxes other expenditure (to be specified) profit transferred to profit and loss account balance of account at the end of the year as shown in the balance-sheet reserve for unexpired risks, being per rs, rs cent, of premium income of year additional reserve (if any) rs, rs, (a) this item must include all expenses directly incurred in relation to assessment of claims of the nature of survey fees, fees for police reports, legal fees, court expenses and other similar charges, but should not include any establishment or administration expenses except in so far as they relate to any employee exclusively employed on survey or assessment of losses (b) if in any year the claims actually paid and those still unpaid at the end of that year in respect of the previous year or years are in excess of the amount included in the previous year's revenue account as provision for outstanding claims, then the amount of such excess must be shown in the revenue account (c) if anysum has been deducted from this item and entered on the assets side of the balance-sheet the amount so deducted must be shown separately 4 of 1938 (d) where the account is furnished under the provisions of section 11 of the insurance act, 1938, separate figures for claims paid to claimants in india, and claimants outside india, and for premiums derived from business effected in india and effected outside india must be given (e) all the amounts received by the insurer directly or indirectly whether, from his head office or from any other source outside india shall also be shown sepa-_, rately in the revenue account except such sums as properly appertain to the capital account whether the account is' furnished under the provisions of clause (b) ot subsection (2) of section 16 of the insurance act, 1938, by an insurer to whom that 4 of 1938 section applies, separate figures for business within india and business out of india must be given against the items marked with an asterisk against all other items the total amount for the business as a whole may be given  the fourth schedule _ (see section 13) regulations for the preparation of abstracts of actuaries' reports and requirements applicable to such abstracts  part i regulations1 abstracts and statements must be so arranged that the numbers and letters of the _ paragraphs correspond with those of the paragraphs of part ii of this schedule 2 in showing the proportion which that part of the annual premiums reserved as a provision for future expenses and profits bears to the total of the annual premiums, in accordance with the requirements of paragraph 4 of part iv'of this schedule, no credit is to be taken for any adjustments made in order to secure that no policy is treated as an asset _ 3 (1) the average rate of interest yielded in any year by the assets constituting a life insurance fund shall, for the purposes of paragraph 5 of part i of this schedule, be calculated by dividing the interest of the year by the mean fund of the year; and for the purposes of any such calculation the interest of the year shall be taken to be the whole of the interest credited to the life insurance fund during the year after deduction of income-tax charged thereon (any refund of income-tax in respect of expenses of management made during the year being taken into account), and the mean fund of the year shall be ascertained by adding a sum equal to one-half of the amount of the life insurance fund at the beginning of the year to a sum equal to one-half of that fund at the end of the year, and deducting from the aggregate of those two sums an amount equal to one-half of the interest of the year : (2) for the purposes of the calculation aforesaid either— (a) all profits and income arising during the year from sums invested in reversions shall be included in the interest credited to the life i insurance fund during the year; or (b) such portion of the life insurance fund as is invested in the purchase of reversions, and the profits and income arising therefrom, shall be excluded from the calculation; but in that case a statement must be added to the information required under the said paragraph 5, showing, in respect of the portion of the fund so excluded as aforesaid, the average rate of annual profit and income for which credit has been taken during the five years last preceding the valuation date, and explaining the manner | in which thé said average rate has been calculated (3) the information given in accordance with the requirements of the said paragraph 5 shall show clearly by which of the methods hereinbefore in this regulation mentioned the sums invested in reversions and the profits and income arising therefrom have been dealt with : 4 every abstract prepared in'accordance with the requirements of part ii of this schedule shall be signed by an actuary and shall-contain a certificate by him to the effect that he has satisfied himself as to the accuracy of the valuations made for the purposes thereof and of the valuation data: provided that,in the case of an abstract prepared on behalf of an insurer, if the actuary who signs the abstract is not a permanent officer of the insurer, the certificate as the accuracy of the valuation data shall be given and signed by the principal officer of the insurer and the actuary shall include in the abstract a statement signed by him showing what precautions | he has taken to ensure the accuracy of the data : _ 5 for the purposes of the schedule the following expressions have the meanings hereby respectively assigned to them, namely:— "extra premium" means a charge for any risk not provided for in the minimum contract premium; "inter-valuation period" means, as respects any valuation, the period to the valuation date of the valuation from the valuation date of the last preceding valuation in connection with which an abstract was prepared under this act or under the enactments repealed by this act, or, in a case where no such valuation has been made in respect of the class of business in question, from the date on which the insurer began to carry on that class of business; "maturity date" means the fixed date on which any benefit will become payable either absolutely or contingently; "net premiums" means as respects any valuation the premiums taken credit for in the valuation; "premium term" means the period during which premiums are payable; "valuation date" means as respects any valuation the date as at which the valuation is made   part requirements applicable to an abstract in respect of lire insurance businessthe following tabular statements shall be annexed to every abstract prepared in accordance with the requirements of this part of this schedule, namely:— (a) a consolidated revenue account, in the form g annexed to this part of this schedule, for the inter- valuation period (except that it shall not be necessary to preparesuch an account in respect of any class of business so long as the insurer deposits annually with the authority an abstract in respect of that class of business); and (b) a summary and vaiuation in the form h annexed to this part of this schedule of the policies included at the valuation date in the class of business to which the abstract relates; and (c)a valuation balance-sheet in the form -] annexed to this part of this schedule; and (d) a statement in form ddd as set forth in part ii of the third schedule of the additions to and deductions from the number of policies and the sums insured thereunder for each class of life insurance for the inter-valuation period (except that it shall not be necessary to prepare such statement in respect of any class of business so long as the insurer deposits annually with the authority an abstract in respect of that class of business); and every such abstract shall show— : 1 the valuation date 2 the general principles and full details of the methods adopted in the valuation of each of the various classes of insurances and annuities shown in the said form h, including statements on the following points:— (a) whether the principles were determined by the instruments constituting the company or by its regulations or bye-laws or how otherwise; (b) the method by which the net premiums have been arrived at and how the ages at entry, premium terms and maturity dates have been treated for the purpose of the valuation; __(c) the methods by which the valuation age period from the valuation date tothe maturity date, and the future premium terms, have been treated for the purpose of the valuation; : (d) the rate of bonus taken into account whereby the method of valuation definite provision is made for the maintenance of a specific rate of bonus; (e) the method of allowing for— (i the incidence of the premiumincome; and (ii) premiums payable otherwise than annually; (f) the methods by which provision has been made for the following matters, namely:— (i the immediate payment of claims; ; (ii) future expenses and profits in the case of limited payment and paid-up _ policies; _ ii) the reserve in respect of lapsed policies, not included in the valuation, but under which a liability exists or may arise; and whether any reserves have been made for the matters aforesaid; ' os (g) whether under the valuation method adopted any policy would be treated as an asset, and, if so, what steps, if any, have been taken to eliminate such asset; (h) a statement of the manner in which poliéi s on under-average lives and policies subject to premiums which include a charge for climatic, military or other extra risks have been dealt with; and (d) the rates of exchange at which liabilities in respect of policies issued in foreign currencies have been converted into rupees and what provision has been made for possible increase of liability arising from future variations in the fates of exchange '  3 the table of mortality used, and the rate of interest, assumed, in the valuation 4 the proportion which that part of the annual premiums reserved as a provision for future expenses and profits bears to the total of the annual premiums, separately specified in respect of insurances with immediate profits, with deferred profits, with profits under discounted bonus systems, and without profits 5 the average rates of interest yielded by the assets, whether invested or uninvested, constituting the life insurance fund for each of the years covered by the valuation date 6 the basis adopted in the distribution of profits as between the insurer and policyholders, and whether such basis was determined by the instruments constituting the company, or by its regulations or bye-laws, or how otherwise 7 the general principles adopted in the distribution of profits among policy-holders, including statements on the following points, namely:— ,  (a) whether the principles were determined by the instruments constituting the company, or by its regulations or bye-laws, or how otherwise; (b) the number of years' premiums to be paid, period to elapse and other conditions to be fulfilled before a bonus is allotted; (c) whether the bonus is allowed in respect of each year's premium paid, or in respect of each completed calender year or year of assurance or how otherwise; and (d) whether the bonus vests immediately on allocation, or, if not, the conditions of vesting 8 (1) the total amount of profits arising during the inter-valuation period, including profits paid away and sums transferred to reserve funds or other accounts during that period, and the amount brought forward from the preceding valuation (to be stated separately) and the allocation of such profits— - (a) to interim bonus paid; (b) among policy-holders with immediate participation, giving the number of the policies which participated and the sums assured thereunder (excluding bonuses); (c) among policy-holders with deferred participation, giving the number of the policies which participated and the sums assured thereunder (excluding bonuses); (d) among policy-holders in the discounted bonus class, giving the number of the policies which participated and the sums assured thereunder (excluding bonuses); (e) to the insurer or, in the case of an insurance company, among shareholders or  , to shareholders' accounts (any such sums passed through the accounts during the \ inter-valuation period to be separately stated); a (fto every reserve fund or other fund or account (any such sums passed through '\ the accounts during the inter-valuation period to be separately stated); (g) as carried forward unappropriated (2) specimens of bonuses allotted as a result of this valuation to policies for one thousand rupees— ' (a) for the whole term of life effected at the respective ages of 20, 30 and 40, and having been in force respectively for five years, ten years and upwards at intervals of ten years; and : os , (b) for endowment insurances effected at the respective ages of 20, 30 and 40, for endowment terms of fifteen, twenty and thirty years, and having been in force respectively for five years, ten years and upwards at intervals of ten years; together with the amounts apportioned ur ©  the various manners in which the bonus is receivable 9 a statement in form j annexed to this part of this schedule of specimen policy reserve values held or required to be held according to the methods adopted in the valuation, and specimen minimum surrender values in respect of whole life insurance policies for rs 1,000 with premiums payable throughout life effected at the respective ages of 20, 30, 40 and 50, and immediately on payment of the first, second, third, fourth, fifth, sixth, seventh, eighth, ninth, tenth, fifteenth and twentieth annual premium; with similar specimen policy reserve values and specimen surrender values in respect of whole life insurance policies subject to premiums payable for 20 years and of endowment insurance policies maturing at age 55 10 a statement showing how the liability under any disability clause in a policy has been determined in the valuation with full information of the tables of sickness or accident used for the purpose  consolidated revenue account of| commenciag          | vs                   | cerecrereeeeeeces    | gn        | engin      | cscssrecoersseee    ||----------------------|----------------------|----------------------|-----------|-------------|---------------------|| business             | "                    | business             |           |             |                     || _                    | within               | total                | _         | within      | total               || india                | (a)                  | india                | (a)       |             |                     || rs                  | rs                  | rs,                  | rs       | -           |                     || claims              | under                | policies             |           |             |                     || (including           | provisions           | for                  |           |             |                     || balance              | of                   | life                 | insurance |             |                     || fund                 | at                   | the                  | beginning |             |                     || -                    | claims               | due                  | or        | intimated), |                     || less                 | re-insurances—       | '                    |           |             |                     || of                   | the                  | period,              |           |             |                     || premiums,            | less                 |                      |           |             |                     || re-insurances—       |                      |                      |           |             |                     || (i)                  | first                | year                 | premiums  |             |                     || {ii)                 | renewal              | premiums             |           |             |                     || (iii)                | single               | premiums             |           |             |                     || consideration        | for                  | an-                  | -         |             |                     || by                   | death                |                      |           |             |                     || by                   | maturity             |                      |           |             |                     || annuities,           | less                 | re-insurances        |           |             |                     || surrenders           | (including           |                      |           |             |                     || surrenders           | of                   | bonus)               | huities   | granted,    | less                || insulances           | (c) :crcecenee       |                      |           |             |                     || less                 | re-insurances        |                      |           |             |                     || bonuses              | in                   | cash,                | less      | re-         |                     || interest,            | dividends            | and                  |           |             |                     || remus             | srcressereretsnare: | rs                  |           |             |                     || insutances           | eee                  |                      |           |             |                     || bonuses              | in                   | reduction            | of        |             |                     || premiums,            | less                 | re-in-               |           |             |                     || sutances 100         |                      |                      |           |             |                     || expenses             | of                   | manage-              |           |             |                     || ment                 | (b)                  | (e)~                 |           |             |                     || less—income-tax      | thereon              |                      |           |             |                     || (d)                  | rs                  |                      |           |             |                     || registration         | fees,                | esecessevene         |           |             |                     || i                   | (a)                  | commission           | to        | 'in-        |                     || surance              | agents               | (less                |           |             |                     || other                | income               | (to                  | be        |             |                     || specified) cccsescee |                      |                      |           |             |                     || that                 | on                   | re-insurances)       |           |             |                     || (b)                  | allowances           | and                  |           |             |                     || commission           | other                | than                 |           |             |                     || commission           | included             |                      |           |             |                     || in                   | sub-item             | (a)                  | prece-    |             |                     || loss                 | transferred          | to                   | profit    |             |                     || and                  | loss                 | account             |           |             |                     || transferred          | from                 | appro-               |           |             |                     || priation             | account           |                      |           |             |                     || 2                   | salaries,            | etc,                | other     |             |                     || than                 | to                   | agents               | and       |             |                     || those                | contained            | in                   |           |             |                     || sub-item             | 1                    | ()                   | pre-      |             |                     || ceding              |                      |                      |           |             |                     || 3                   | travelling           | ex-                  |           |             |                     || penses              |                      |                      |           |             |                     || directors'           | fees                |                      |           |             |                     || auditors'            | fees 5              |                      |           |             |                     || medical              | fees                |                      |           |             |                     || law                  | charges             |                      |           |             |                     |business business _— within total _ within total  india (a) india (a) rs, rs rs rs 8 advertisements 9 printing and statonnerye 10, other expenses of management (accounts to be specified) ccs 1 other payments (accounts to be specified) 12 rent for offices belonging to and occupied by the insurer 13 rents of other offices occupied by the insurer bad debts united kingdom, indian, dominion and foreign taxes other expenditure (to be specified)  profit transferred to profit and loss ac- balance of life insurance fund at end of the period as shown in the balance-sheet rs rs  notes(a) these columns apply to all business except business the premiums in respect : of which are ordinarily paid outside india if any question arises whether any premiums are ordinarily paid inside or outside india, the authority shall decide the question and his decision shall be final (b) if any sum has been deducted from this item and entered on the assets side of the balance-sheet, the amount so deducted must be shown separately (c) all single premiums for annuities, whether immediate or deferred, must be included under this heading (@) indian, united kingdom, foreign and dominion income-tax on interest, dividends and rents must be shown under this heading, less any rebates of incometax recovered from the revenue authorities in respect of expenses of management the separate heading on the other side of the account is for united kingdom, indian, foreign and dominion taxes, other than those shown under this item (e) in the case of an insurer having his principal place of business outside india the expenses of management for the total business need not be split up into the several sub-heads, if they are not so split up in his own country summary and valuation of the policies of d8 at 19, | particulars            | of                          | the                  | valuation    ||------------------------|-----------------------------|----------------------|--------------|| policies               | for                         | valuation            |              || description            | of                          | number               | sums         || transactions           | of                          | assured              | yearly       || polices                | pre-                        | pre-                 | and          || 3)                     | q)                          | 3)                   | @)           || division               | i                           | :                    |              || insurances             |                             |                      |              || group                  | a-                          |                      |              || with                   | immediate                   | participation        | in           || peoples             | ceeeesseeeseeeeettseeerense |                      |              || for                    | whole                       | term                 | of           || other                  | classes                     | (to                  | be           || extra                  | premiums                 |                      |              || total                  | insurances                  |                      |              || _deduct—re-insurances |                             |                      |              || net                    | insurances                  | feaveisaseenneseenes |              || group                  | b-                          |                      |              || with                   | deferred                    | participation        | in           || profits                |                             |                      |              || for                    | whole                       | term                 | of           || other                  | classes                     | (to                  | be           || extra                  | premiums                    |                      |              || total                  | insurances:                 |                      |              || deduct—re-insurances  |                             |                      |              || net                    | insurances                  |                      |              || group                  | c-                          |                      |              || under                  | discounted                  | bonus                | systems      || for                    | whole                       | term                 | of           || other                  | classes                     | (to                  | be           || extra                  | premiums                    | ccc                  |              || total                  | insurances                 |                      |              || deduct—re-insurances  |                             |                      |              || net                    | insurances sceeccereeee     |                      |              || group                  | d-                          |                      |              || without                | participation               | in                   | profits      || for                    | whole                       | term                 | of           || other                  | classes                     | (to                  | be           || extra                  | premiums                   |                      |              || total                  | insurances                 |                      |              || deduct—re-insurances  |                             |                      |              || net                    | insurance                   |                      |              || total                  | insurances                  | without              | profits   || total                  | of                          | the                  | insurances   || groups                 |                             |                      |              || deduct—re-insurances  |                             |                      |              || net                    | amount                      | of                   | insurance    || adjustments,           |                             |                      |              || if                     |                             |                      |              || any                    |                             |                      |              || (to                    |                             |                      |              || be                     |                             |                      |              || separately             |                             |                      |              || :                      |                             |                      |              || specified)          | cesses                      |                      |              || division               | ii                          |                      |              || annuities              | on                          | lives                |              || immediate              | annuities                   |                      |              || deferred               | annuities                   | with                 | return       || premiums            |                             |                      |              || deferred               | annuities                   | without              | return       || of                     | premiums                 | wesee                |              || other                  | classes                     | (to                  | 'be          || total                  | annuitis                   |                      |              || deduct—re-insurances   |                             |                      |              || net                    | annuities                   | on                   | lives,       || total                  | of                          | the                  | results      || miums    | miums    | bonuses    | miums    | miums    ||----------|----------|------------|----------|----------|1, items ia this summary are to be stated to the nearest rupee 2 no policy of insurance upon the lives of group of persons, whereby sums assured are payable in respect of the several persons included in the group, is to be included in groups a, b, c or d of this form; any such policies must be shown in a separate group which must be added to the form 3 if polices without participation in profits but which a guaranteed rate of bonus are issued, they must be separately specified in group d of this form 4 policies under which there is a waiver of premiums during disability must be' shown as a separate class 5 separate forms must be prepared in respéct of classes of policies valued by  different tables of mortality or at different rates of interest of involving the valuation of net premiums on different basis 6 in cases where separate valuations of any portion of the business are required - under local laws in places outside india and reserves based on such valuations are deposited in such places, a statement must be furnished in respect of the business so valued in each such place showing the total number of policies, the total sums assured and bonuses, the total office yearly premiums, and the total net liability on the basis as to mortality and interest adopted in cach such place with a statement as to such basis respectively  7, office and net premiums and the values thereof must be shown after deduction of abatements made by the application of bonus valuation balance-sheet off1000 as at rs,  rs, net liability under business as shown in the balance of life insurance fund summary and valuation of policies, as shown in the balance sheet surplus, if any deficiency, if any  noteif the proportion of surplus allocated to the insurer, or the case of an insurance company to shareholders, is not uniform in respect of all classes of insurances, the surplus must be shown separately for the classes to which the different proportions relate  form j specimen policy reserve values and minimum surrender values under| qasssecsrnvsrsens    ||----------------------|| age                  || at                   || entry                || 20                   || age                  || at                   || entry                || 30                   || age                  || at                   || entry                || 40                   || "                    || age                  || at                   || entry                || 50                   || number               || of                   || annual               || reserve              || minimum              || reserve              || minimum              || reserve              || minimum              || reserve              || minimum              || premiums             || paid                 || up                   || value                || surrender            || value                || surrender            || value                || surrender            || value                || surrénder            || to                   || the                  || valuation            || date                 || value                || value                || value                || value                |1 2 3 4, 3 6 7 8 9 10 15 20 note— items in this form to be stated to the nearest rupee, ; , note— the reserve value is to be based on the rate of office' premium payable by an insured who entered at the age shown and who had, by the valuation date, paid the number of annual premiums shown in the first column  regulations for preparing statements of business in force and requirements applicable to such statements parti regulations1 statements prepared under this schedule must be prepared, so far as practicable, in tabular form and must be identified by numbers and letters corresponding with thoss of the paragraphs of part ii of this schedule 2 except with respect to rates of premium or contributicn, items in statements prepared under this schedule are to be shown to the nearest rupee 3, extra premium shown in the forms of summary and valuation prepared under the fourth schedule to this act must not be included in statements prepared under this schedule 4, every statement prepared under this schedule shall be signed'by the actuary making the investigation in connection with which it is prepared 5 for the purposes of this schedule the following expressions have the meanings hereby respectively assigned to them, namely:— (a) "annual loading" means the provision made for future expenses and profits;      