Home › LIC AAO › insurance › Insurance Act 1938 — Accounts Separation › Section 11(2) of the Insurance Act 1938 requires…
Section 11(2) of the Insurance Act 1938 requires insurers to keep separate accounts for:
A{'text': 'Each branch office', 'letter': 'A'}
B{'text': 'Life vs general only', 'letter': 'B'}
C{'text': "Shareholders' funds and policyholders' funds", 'letter': 'C'}
D{'text': 'Insurance vs investment activities', 'letter': 'D'}
Answer & Solution
Correct answer: C. {'text': "Shareholders' funds and policyholders' funds", 'letter': 'C'}
1. Section 11(2) addresses internal segregation of accounts.
2. Insurers manage funds from two distinct stakeholder groups.
3. Every insurer shall keep separate accounts relating to funds of shareholders and policyholders.
_Source: Insurance Act 1938 (incorporating amendments till 2021), noc.irdai.gov.in — "Every insurer shall keep separate accounts relating to funds of shareholders and policyholders."_