Question
Under the provisions related to reinsurance with Indian
re-insurers, which of the following statements is most accurate?Solution
Insurance Act Section 101A Re-insurance with Indian re-insurers: (2) For the purposes of sub-section (1), 3[the Authority] may, by notification in the Official Gazette: (a) specify the percentage of the sum assured on each policy to be re-insured and different percentages may be specified for different classes of insurance: Provided that no percentage so specified shall exceed thirty per cent. of the sum assured on such policy; and (b) also specify the proportions in which the said percentage shall be allocated among the Indian re-insurers.
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