CS Professional · Banking and Insurance - Laws and Practice · Life Insurance
LIC's overseas branch in a foreign country earns a surplus. Under Section 28(4) of the LIC Act, 1956 as inserted in 2025, how is that branch surplus to be utilised?
The surplus of a branch or office situated outside India is utilised in accordance with the laws of that country, as provided by Section 28(4) of the LIC Act, 1956, inserted by Act 40 of 2025 and effective from 5 February 2026.
- AIn accordance with the laws of that countryCorrect
- BEntirely as per Section 28A within India
- CPaid to the Central Government
- DTransferred to the Insurance Regulatory and Development Authority
Explanation
Section 28(4), inserted by Act 40 of 2025 with effect from 5 February 2026, says that where a branch or office is situated in a country outside India, its surplus is utilised in accordance with the laws of that country. The other options have no basis in that provision.
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