Section 16 — Constitution of Fund.

(1) There shall be constituted a fund to be called "the Insurance Regulatory and Development Authority Fund" and there shall be credited thereto--- (a) all Government grants, fees and charges received by the Authority; (b) all sums received by the Authority from such other source as may be decided upon by the Central Government; 1 * * * * * (2) The Fund shall be applied for meeting--- (a) the salaries, allowances and other remuneration of the members, officers and other employees of the Authority; (b) the other expenses of the Authority in connection with the discharge of its functions and for the purposes of this Act 2 [and the Insurance Act, 1938 (4 of 1938)]; 2 [(c) the capital expenditure, as per annual capital expenditure plan approved by the Authority.] 2 [(3) The Authority shall constitute a Reserve Fund and twenty-five per cent. of the annual surplus of the Fund in any year shall be credited to such Reserve Fund and such fund shall not exceed the total of annual expenditure of preceding three financial years. (4) After incurring all the expenses referred to in sub-section ( 2 ) and transfer to Reserve Fund as specified in sub-section ( 3 ), the surplus of the Fund shall be transferred to the Consolidated Fund of India. Explanation. ---For the purposes of this section, the expression "Reserve Fund" means a fund to hold the surplus of the Fund, in the form and manner specified in sub-section ( 3 ) of section 16.]

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