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CS Professional · Banking and Insurance - Laws and Practice · Life Insurance

Under Section 28(3) of the LIC Act, 1956 as currently stated, what must LIC do regarding its surplus distribution policy?

LIC must, with Board approval, publish its surplus distribution policy on its website at least once in five years, or at a shorter interval of not less than three years as the Board deems fit. The policy must specify, among other things, the percentages referred to in Section 28(1).

  1. AWith Board approval, publish it on its website at least once in five years, or a shorter period of not less than three years as the Board deems fitCorrect
  2. BFile it with the Central Government every year
  3. CPublish it in the Gazette once in ten years
  4. DSubmit it to policyholders by post every two years

Explanation

Section 28(3) requires LIC, with Board approval, to publish its surplus distribution policy on its website at least once in five years, or such shorter period not less than three years as the Board deems fit. The policy must specify, among other things, the percentages in sub-section (1).

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