Limitation of expenses of management in life insurance business
Section 40B of the Insurance Act, 1938 deals with limitation of expenses of management in life insurance business. No insurer shall, in respect of insurance business transacted by him in India, spend as expenses of management in any financial year any amount exceeding the amount as may be specified by the regulations made under this Act;] The Act came into force on 01 Jul 1939.
1[40B. Limitation of expenses of management in life insurance business. --No insurer shall, in respect of insurance business transacted by him in India, spend as expenses of management in any financial year any amount exceeding the amount as may be specified by the regulations made under this Act;]
Section 40B, The Insurance Act, 1938 (Act 4 of 1938).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
-
… previous year; - ( c ) 90 per cent of the first year's premiums received during the previous year in respect of all other life insurance policies; - ( d ) in respect of all renewal premiums received during the previous year, an amount calculated at such percentage thereof as is permissible under sub section (2) of section 40B of the Insurance Act, 1938 (IV of 1938), as reduced by any expenditure or allowance which is not deductible under sections 30 to 43 in computing income chargeable under the head "Profits and gains of business or profession". ) Rule 3 was in the following terms: ( a ) four-fifths of the amounts paid to or …
Made under this section, and citing it
2 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
- Insurance Regulatory and Development Authority of India (Expenses of Management of Insurers transacting General or Health Insurance business) Regulations, 2023Regulation 2023
- Insurance Regulatory and Development Authority of India (Expenses of Management of Insurers transacting life insurance business) Regulations, 2023Regulation 2023
Questions about Section 40B
What does Section 40B of the Insurance Act deal with?
Section 40B of the Insurance Act is headed "Limitation of expenses of management in life insurance business". [40B. Limitation of expenses of management in life insurance business.
How do I find court cases under Section 40B of the Insurance Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Insurance Act 1938 40B, section 40B Insurance Act 1938, section 40B of the Insurance Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 40B of the Insurance Act, and has it changed?
4 other provisions in this corpus refer back to it. The rules and notifications made under it are where it actually bites, and there are 2: most recently Insurance Regulatory and Development Authority of India (Expenses of Management of Insurers transacting General or Health Insurance business) Regulations, 2023 (2023), then Insurance Regulatory and Development Authority of India (Expenses of Management of Insurers transacting life insurance business) Regulations, 2023 (2023).
When did Section 40B of the Insurance Act come into force?
Section 40B of the Insurance Act, cited as Insurance Act 1938 40B, came into force on 01 Jul 1939, having been enacted on 26 Feb 1938. It is in force as at the date shown on this page.
Other sections of this Act
- 37A. Power of Authority to prepare Scheme of Amalgamation1733 words
- 3. Registration1612 words
- 2. Definitions1604 words
- 106. Power of Court to order restoration of property of insurer or compensation in certain cases1514 words
- 114A. Power of Authority to make regulations1275 words
- 6A. Requirements as to capital structure and voting rights and maintenance of registers beneficial owners of shares1136 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 17 Oct 2026. This page is not a substitute for legal advice.