 financial memorandumclause 2 of the life insurance corporation (amendment) bill, 2008 seeks to raise the minimum capital of the life insurance corporation of india from five crore of rupees to one hundred crore of rupees which may be enhanced to such amount as the central government may, by notification, determine the bill, ifenacted, will involve enhancement of share capital by ninety-five crore of rupees to be provided by the government of india after due appropriation made by parliament, by law, for the said purpese the provisions of the bill do not involve any other recurring or non-recurring expenditure annexure extracts from the life insurance corporration act, 1956(31 of 1956)  5 (1) the original capital of the corporation shall be five crores of rupees provided by capital of the corporation the central government after due appropriation made by parliament by law for the purpose, and the terms and conditions relating to the provision of such capital shall be such as may be determined by the central government, (2) the central government may, on the recommendation of the corporation, reduce the capital of the corporation to such extent and in such maner as the central government may determine   chapter v management48 (1)    be  (4) there may be established as many divisional offices and branches in each zone as officers, branches and agencies the zonal manager thinks fit |     |     |     |     |     ||------|------|------|------|------|26 the corporation shall, once at least in every two years, cause an investigation to actuarial valuations be made by actuaries into the financial condition of the life insurance business of the corporation, including a valuation of the liabilities of the corporation in respect thereto, and submit the report of the actuaries to the central government |        |     ||---------|------|| surplus | from |28 if as a result of any investigation undertaken by the corporation under section 26 any surplus emerges, ninety-five per cent of such surplus or such higher percentage thereof | life     | insurance    ||----------|--------------|| business | how          || to       | be           |as the central government may approve shall be allocated to or reserved for the life insurance policy-holders of the corporation and after meeting the liabilities of the corporation, if any, which may arise under section 9, the remainder shall be paid to the central government or, if that government so directs, be utilised for such purposes and in such manner as that government may determine |            |     |     ||-------------|------|------|| policies    | to   | be   || guaranteed  | by   |      || central     |      |      || government |      |      |37 the sums assured by all policies issued by the corporation including any bonuses declared in respect thereof and, subject to the provisions contained in section 14, the amounts assured by all policies issued by any insurer the liabilities under which have vested in the corporation under this act, and all bonuses declared in respect thereof, whether before or after the appointed day, shall be guaranteed as to payment in cash by the central government |     |     |     |     |     ||------|------|------|------|------|44 nothing contained in this act shall apply in relation to—      act not to apply in certain cases (b) any insurer to whom the insurance act does not apply by reason of the provisions contained in section 2e thereof; |     |     |     |     |     ||------|------|------|------|------|48 (1)  power to make rules (2) in particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:—      (cc) the terms and conditions of service of the employees and agents ofthe corporation, including those who became employces and agents of the corporation on the appointed day under this act   °   49 rg i bog     (2) in particular, and without prejudice to the generality of the foregoing power, such regulations may provide for— | power        ||--------------|| make         || regulations ||             ||             ||             ||             ||             |(b) the method of recruitment of employees and agents of the corporation;      (j the form and manner in which policies may be issued and contracts binding on the corporation may be executed;      