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The Insurance Act, 1938

( ACT NO. IV Of 1938 )

Basis for determination of premium rates
1[3BB. (1) The Chief Controller of Insurance shall, at intervals of not less than five years,-
 
 
 
 
(a) prepare mortality tables indicating the average rate of mortality of the policy-holders;
 
 
 
 
(b) prepare statement of yield indicating the range of rates of interest or yield on the investment of the insurers' funds; and
 
 
 
 
(c) lay down the level of expenses of procurement and management of an insurer.
 
 
 
 
(2) The Chief Controller of Insurance may direct an insurer to furnish such information as the Chief Controller may require for the purpose of preparing the mortality table and the statement of yield and laying down the level of expenses under sub-section (1); and every insurer shall comply with such direction.
 
 
(3) The mortality table, the statement of yield and the level of expenses prepared and laid down under sub-section (1) shall be published in the official Gazette.
 
 
 
 
(4) Every insurer shall, on the basis of the current mortality table, the statement of yield and the level of expenses published under sub-section (3),-
 
 
 
 
(a) determine the rates of premium for non-participating policies issued by him; and
 
 
 
 
(b) review and, if necessary, make consequential adjustments in, the rates of premium in the participating policies and submit to the Chief Controller of Insurance a statement indicating such adjustments.]

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    Section 3BB was inserted by section 5 of the Insurance (Amendment) Ordinance, 1970 (Ordinance No. XXV of 1970)
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