Govt plans to revamp LIC’s rules for sharing surplus

Currently LIC, which is governed by a special law, is allowed to transfer 5% of its surplus to the shareholders fund. The remaining 95% goes to the policyholders fund for paying bonus on eligible life insurance policies. In case of other life insurance companies, which are regulated through the Insurance Act, the permissible allocation is in the ratio of 90:10.

via Economictimes