(1) The Controller ofInsurance shall be entitled, free of any fee to inspect or to requirefrom the Bank any information relating to any security deposited withthe Bank under the Act.
(2) The Bank shall, if so required, furnish the Controller ofInsurance, or any person authorized by him in that behalf in writingwith a copy of any entry in any register or book maintained by theBank relating to any deposit made with the Bank under the Act.
(3) The Bank shall publish as soon as may be after the 1St Januaryin each year in such manner as the Central Government may direct alist in Form IV of deposits made with it under the Act. as at 31StDecember of the preceding year.
Securities and Investments 10 -A. Pakistan securities.- Securities guaranteed fully asregards principal and interest by a Provincial Government in Pakistanor charged on the revenues of any part of that Dominion anddebentures or other securities for money issued by or on behalf ofthe trustees of the Port of Karachi shall be recognized, in the caseof insurers incorporated or domiciled in India, as approvedsecurities-
(a) for the purposes of Sec. 7, 68 or 73, if such securities hadbeen deposited with the Bank in pursuance of the Act before the 15thday of August. 1947. and continue to be so deposited with the Banksince that date, and
(b) for the purposes of Sec. 27 and 27-A, if such securities hadbeen acquired by an insurer or a provident society before the 15thday of August.
1947.
and continue to be held since that date by the insurer or theprovident society.
10 -B. Assets deemed to be approved investments.-
(i) For the purposes of subsection (1) of See. 27 of the Act, thefollowing assets shall be deemed to be assets invested in approvedinvestment specified in sub-section (1) of Sec. 27-A of the Act-
(a) interest, dividend and rents (outstanding and accrued);
(b) cash in hand and with banks (other than banks in liquidationin current and collection accounts;
(c) bills receivable;
(d) value of furniture, fittings, machinery, stationery andlibrary but not exceeding Rs. 10,000 or one per cent. of the sumreferred to in sub-section
(1) of Sec. 27 of the Act, whichever isgreater;
(e) value of motor cars but not exceeding Rs. 20,000 or one halfper cent of the sum referred to in sub-section (1) of Sec. 27 of theAct whichever is greater;
(f) stamps on hand;
(g) amount of income-tax directed by the income-tax authority, tobe refunded; (h) temporary advances granted to chief, special andinsurance agents to the extent permitted under Cl. (b) of sub-section(3) of See. 29 of the Act. (2) (i) For the purposes of sub-section(2) of Sec. 27-B of the Act, the following assets shall be deemed tobe assets invested or kept invested in approved investments specifiedin sub-section (1) of that section, namely:
(a) interest, dividends and rents (outstanding and accrued);
(b) cash in hand and with banks (other than banks in liquidation)in current and collection accounts;
(c) bills receivable;
(d) amounts due from other insurers in respect of reinsurancerecoveries and deposits or reserves with other insurers in respect oftreaties for reinsurances as to be accepted.
(ii) In respect of insurance specified in Cl. (c) of sub-section(16) of Sec. 27- B of the Act, three-fourths of the value of thefollowing assets shall also be deemed to be approved investmentsspecified in sub-section (1) of Sec, 27- B of the Act, namely:
(a) motor cars,
(b) stamps on hand,
(c) amounts of income-tax directed by the income-tax authoritiesto be refunded.
10 -C. Returns of investments and changes in investments.-(1) Thereturn to be furnished under sub-section (1) of Sec. 28-A of the Actshall show all the investments made out of the controlled fund andsubsisting as at the 31st day of December of the preceding year andshall be in Form IV-A:
Provided that in the case of the Life Insurance Corporation ofIndia, the aforesaid return shall show the said investmentssubsisting as at the last day of the preceding financial year andshall be in Form IV-AAA.
(2) The return to be furnished under sub-section (2) of Sec. 28-Aof the Act shall be in Form IV-B and in the case of the LifeInsurance Corporation of India the said return shall be in FormIV-BBB.
(3) The return to be furnished under sub-section (1) of Sec. 28-Bof the Act shall show all the investments made out of the assets andsubsisting as at the 31st day of December of the preceding year shallbe in Form IV-AA.
(4) The return to be furnished under sub-section (2) of Sec. 28-Bof the Act shall be in Form IV-BB.
10-D. Charging assets.- (1) An insurer may subject the assetsforming his controlled fund, not being securities kept invested inpursuance of subsection (1) of Sec. 27, to a charge in favour of abanking company for the purpose of raising an over-draft, andinvesting the money so raised:
Provided that the assets charged do not exceed in value ten percent of the controlled fund and the charge is created for a periodnot exceeding six months.
(2) For the purpose of sub-section (11) of Sec. 27-B the chargecreated in favour of one or more banking companies in respect ofassets offered as security for any loan taken for purposes of anyinvestment or for payment of claims shall be subject to the conditionthat any loan taken against such assets shall be repaid within aperiod of three months.
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