Question

What type of deposits are considered approved investments for both Life and General Insurance Companies under the regulations?

a.

Only fixed deposits as per section 27B (10) of the Insurance Act

b.

Only current accounts with banks

c.

Fixed deposits, current accounts, call deposits, notice deposits, and certificate of deposits with banks included in the Second Schedule to Reserve Bank of India Act 1934

d.

Only call deposits with banks

Posted under IC 89 Management Accounting

Answer: (c).Fixed deposits, current accounts, call deposits, notice deposits, and certificate of deposits with banks included in the Second Schedule to Reserve Bank of India Act 1934 Explanation:Deposits (including fixed deposits) with banks, such as current accounts, call deposits, notice deposits, and certificate of deposits, included for the time being in the Second Schedule to Reserve Bank of India Act 1934, are considered approved investments for both Life and General Insurance Companies.

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