Lawgist52Prohibition of business of dividing principle
1[52. Prohibition of business on dividing principle. -- No insurer shall commence any business upon the dividing principle, that is to say, on the principle that the benefit secured by a policy is not fixed but depends either wholly or partly on the result of a distribution of certain sums amongst policies becoming claims within certain time-limits, or on the principle that the premiums payable by a policyholder depend wholly or partly on the number of policies becoming claims within certain timelimits:
Provided that nothing in this section shall be deemed to prevent an insurer from allocating bonuses to holders of policies of life insurance as a result of a periodical actuarial valuation either as reversionary additions to the sums insured or as immediate cash bonuses or otherwise.]
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1. Subs. by Act 5 of 2015, s. 59, for sections 52 and 52A (w.e.f. 26-12-2014).
- 45 Policy not to be called in question on ground of mis-statement after two years
- 46 Application of the law in force in India to policies issued in India
- 47 Payment of money into Court
- 47A [Omitted.]
- 48A . Insurance agent or intermediary or insurance intermediary not to be director in insurance company
- 48B Further provision regarding directors
- 48C [Omitted.]
- 49 Restriction On dividends and bonuses
- 50 Notice of options available to the assured on the lapsing of a policy
- 51 Supply of copies of proposals and medical reports
- 52 Prohibition of business of dividing principle
