Section 8 in The Life Insurance (Emergency Provisions) Act, 1956
8. Compensation, how to be paid and distributed.
(1)The amount of compensation payable under section 7 shall in the first instance be payable out of the seven and a half per cent. of the surplus referred to in sub- section (1) of section 49 of the Insurance Act earned by the insurer during the period the management of the controlled business of the insurer vests in the Central Government, and where such compensation or any part thereof cannot be so paid out the Central Government shall make due provision for the payment of such compensation or part thereof as the case may be.(2)The compensation payable under section 7 shall be distributed among the persons entitled thereto by the Central Government in such manner as may be prescribed by rules made in this behalf: Provided that in the case of an insurer who is a company the Central Government shall have due regard to the wishes of the members expressed by them at any general meeting convened for the purpose.
