Section 28 in The Life Insurance Corporation Act, 1956
28. [ Surplus from life insurance business, how to be utilised.-
(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.(2)The funds available in the account maintained by the Corporation under clause (b) of sub-section (1) shall be utilised for such purpose and in such manner as the Central Government may determine.]{||-| Prior to substitution by Act 12 of 2008 the section 28 read as;[28-A. Profits from any business (other than life insurance business) how to be utilised.If for any financial year profits accrue from any business (other than life insurance business) carried on by the Corporation, then, after making provision for reserves and other matters for which provision is necessary or expedient, the balance of such profits shall be paid to the Central Government.]
