Section 28(1) in The Life Insurance Corporation Act, 1956
(1)If as a result of any investigation undertaken by the Corporation under section 26, any surplus emerges,-(a)ninety per cent. or more such surplus, as the Central Government may approve, shall be allocated to or reserved for the life insurance policyholders of the Corporation;(b)such percentage of remaining surplus as the Central Government may approve shall be credited to separate account maintained by the Corporation; and (c) the remainder shall be paid as dividend.
