Question

What does Section 40 (C) of the Insurance Act, 1938 provide for in relation to expenses of management in general insurance business?

a.

There are no limits on expenses of management

b.

It prohibits any expenses of management

c.

It imposes limits on expenses of management, taking into account the size and age of the insurer

d.

It allows unlimited expenses of management without any regulation

Answer: (c).It imposes limits on expenses of management, taking into account the size and age of the insurer Explanation:Section 40 (C) of the Insurance Act, 1938 imposes limits on expenses of management in general insurance business, considering the size and age of the insurer.

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Q. What does Section 40 (C) of the Insurance Act, 1938 provide for in relation to expenses of management in general insurance business?

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