Section 60, The Insurance Act, 2016

(1) No insurer shall grant loans or temporary advanceseither on hypothecation of property or on personal security or otherwise any director, managing director, general manager or principal officer of the insurer by whatever name called or to any other company or firm in which such director, managing director, general manager or principal officer holds the position of director, manager, secretary, officer or partner, except loans on life policies issued by it within their surrender value. 38 39 Statement of investments of assets and liabilities relating to life Verification of assets Prohibition of loans to Directors Investments. (2) Nothing in this section shall apply to loans made by an insurer to a banking company. (3) Where any event occurs giving rise to circumstances the existence of which at the time of the grant of any subsisting loan would have made such grant a contravention of this section, such loan shall, notwithstanding any contract to the contrary, be repaid within three months from the occurrence of such event; and in case of a default, the director, managing director, general manager or principal officer by whatever name called shall, without prejudice to any other penalty which he may incur, cease to hold office with the insurer granting the loan on the expiry of the three months. (4) Nothing in this section shall prohibit a company from granting such loans or advances to a subsidiary company or to any other company of which the company granting the loans or advance is a subsidiary company. PART VI—INVESTIGATION OF INSURERS