Distribution of profits on life insurance business among policy-holders
[49A. Notwithstanding anything contained to the contrary in its Memorandum or Articles of Association or any other documents, no insurer transacting life insurance business shall after the commencement of the Insurance (Amendment) Ordinance, 1970, allocate for the benefit of the policy-holders a sum less than such percentage of the surplus, being not less than [ninety] per cent or more than ninety-seven and one-half per cent, as may be prescribed:
Provided that in prescribing the percentage regard shall be had to the size of the insurer.
Explanation.- In this section, “Surplus” means the sum shown as surplus in Form I of the Fourth Schedule enhanced by any sum transferred to any reserve other than a reserve for depreciation in investment adjusted by an amount representing surplus disclosed at a previous valuation and already allocated.]
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