Question

Under the General Insurance Business (Nationalisation)

Q: Answer-Under the General Insurance Business (Nationalisation) Act after making provision for bad and doubtf...

Section 20. Balance of profit how to be utilised 1 After making provision for bad and doubtful debts, depreciation in assets, provident, superannuation, welfare and other funds, debts due to Government and all other matters for which provision is necessary under any law or which are usually provided for by insurance companies, every acquiring company shall distribute the balance of profit as dividends.

Act after making provision for bad and doubtful debts, depreciation in assets, provident, superannuation, welfare, and other funds, debts due to the Government what is the requirement for every acquiring company?

A The company is exempted from distributing profits

B The company should distribute the balance of profit as dividends

C The company must invest the balance of profit in government bonds

D The company should create a reserve fund for future uncertainties

E The company has the discretion to decide the utilization of profit

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Under the General Insurance Business (Nationalisation)

Solution