Section 40, The Insurance Act, 2016

(1) Where the insurer carries on business in more thanone of the classes specified in section 24, he shall keep a separate account of all receipts and payments in respect of each class of insurance business. 30 31 Dividends. Restriction on credit. Separation of accounts. (2) Where the insurer carries on the business of life insurance, all receipts of such business shall be carried to and shall form a separate fund to be called life insurance fund; and the assets of this fund shall be kept free from all incumbrances and shall be separate from all other assets of the insurer. (3) Where the insurer carries on long term insurance business along with life insurance business, he shall keep separate accounts of all receipts and payments in respect of each sub-class of long term insurance business.