Corporate and Economic Laws · Laws and Regulations related to Insurance Sector

Application of Other Laws Not Barred (Section 28) for CMA Final

Updated 11 October 2026 · Fact-checked

Section 28 of the IRDA Act, 1999 says the Act applies in addition to, and not in derogation of, any other law in force. So insurers and the Authority stay bound by other laws too. To answer a question, identify each law involved and apply all of them together, unless a specific provision says otherwise.

Understand Application of Other Laws Not Barred (Section 28)

Start with a simple idea. A new law does not wipe out older laws just because it is passed. Parliament often adds a saving clause to say so. Section 28 of the Insurance Regulatory and Development Authority Act, 1999 is that clause for the IRDA Act.

The section reads: "The provisions of this Act shall be in addition to, and not in derogation of, the provisions of any other law for the time being in force." In plain words, the IRDA Act adds to other laws. It does not cut them down or replace them.

Note the section number carefully. Section 28 of the IRDA Act, 1999 is the "application of other laws not barred" provision. Section 28 of the Insurance Act, 1938 is a different provision. It requires every insurer to submit to the Authority returns giving details of investments made, in the form, time and manner specified by the regulations. Students often mix these two.

The practical effect is this. An insurer that is a company is still governed by company law. An insurer is still subject to other laws that apply to it. The IRDA Act does not give it an exemption from them. The words "for the time being in force" mean the section covers laws in force at the time you apply it, not only laws that existed in 1999.

This page also lists nearby Insurance Act sections that help in case questions: section 31 (how assets are kept), section 58 (partial winding up schemes), section 64V (valuation of assets and liabilities), section 109 (cognizance of offences), section 110D (compensation barred) and section 116A (summary of returns).

Key rules to remember

Section 28, IRDA Act, 1999: IRDA Act provisions = in addition to, and not in derogation of, any other law for the time being in force; The IRDA Act adds to other laws. It does not override or reduce them.
Section 28, Insurance Act, 1938: Every insurer submits to the Authority returns of investments made, in the form, time and manner specified by the regulations; Different Act, different rule. Do not confuse it with the IRDA Act section.
Section 31, Insurance Act: Assets in India are kept in the name of a public officer approved by the Authority, or in the corporate name of the undertaking; Assets required to be vested in trustees under section 27(7) are an exception. Endorsing a security to a banking company solely for collection or realisation of interest, bonus or dividend is allowed.
Section 64V, Insurance Act: Assets valued at not more than market or realisable value; every liability properly valued; statement as on 31 March certified by an approved auditor (general insurance) or approved actuary (life insurance); The statement is furnished to the Authority along with the returns.
Section 109, Insurance Act: No court takes cognizance of an offence under the Act, rules or regulations except on a complaint by an officer of the Authority or a person it authorises; This controls who can start a prosecution.
Section 110D, Insurance Act: No right to compensation for loss caused by sections 34, 34A, 34E, 37A or by complying with an order or direction under the Act; Compliance with an order under the Act does not give a claim for compensation.
Section 58, Insurance Act: Partial winding up: wind up one class of business while other classes continue or are transferred, through a scheme confirmed by the Tribunal; The scheme must provide for allocation of assets and liabilities and future rights of each class of policyholders.

How to solve Application of Other Laws Not Barred (Section 28) questions

Use this method for any question on how the IRDA Act sits with other laws, or on the related Insurance Act sections.

1Read the facts and list every law that could apply, for example the Insurance Act, the IRDA Act and company law.
2Name the Act first. Say clearly whether the rule is from the IRDA Act, 1999 or the Insurance Act, 1938.
3State the rule in plain words. For other laws, quote the idea: in addition to, and not in derogation of, any other law in force.
4Apply it to the facts. Ask whether any law is being used to avoid another. If so, Section 28 says the IRDA Act gives no such protection.
5Check for a specific provision that answers the point, such as section 31 on asset custody or section 109 on who may complain.
6Write a clear conclusion in one line and give the section number only where you are sure of it.

Quickest way: Two-line Section 28 answer

When to use it: Use this for a short MCQ or a 2-3 mark question where you must state the effect of Section 28.

Recall the key phrase: in addition to, and not in derogation of.
Conclude: other laws in force continue to apply with the IRDA Act; neither displaces the other by default.
For an MCQ, reject any option saying the IRDA Act overrides all other laws or exempts insurers from them.

Common mistakes in Application of Other Laws Not Barred (Section 28)

Treating Section 28 of the Insurance Act, 1938 as the 'other laws not barred' section.
Both Acts have a section 28 and the numbers look alike.
Fix: Link 'other laws not barred' to the IRDA Act, 1999. Link investment returns to Insurance Act section 28.
Saying the IRDA Act overrides all other laws.
Students assume a special regulator law always prevails.
Fix: Section 28 says the opposite: it is in addition to, not in derogation of, other laws.
Writing that Section 28 is about returns of investments in an IRDA Act answer.
Memory mix-up between the two Acts.
Fix: Write the Act name before the section number in every answer.
Saying any person can file a complaint for an offence under the Insurance Act.
Students assume ordinary criminal procedure applies.
Fix: Section 109: a court takes cognizance only on a complaint by an officer of the Authority or a person authorised by it.
Claiming compensation is payable for loss caused by complying with an order under the Act.
Students apply general contract principles.
Fix: Section 110D bars any right to compensation for loss from the listed sections or from compliance with an order or direction under the Act.

Worked examples

Example 1

An insurer company argues that because the IRDA Act, 1999 regulates insurance, it need not follow any other law applicable to it. Is the argument valid? Answer with reasons.

Show the solution

Identify the provision: Section 28 of the IRDA Act, 1999.
State the rule: the provisions of the Act are in addition to, and not in derogation of, the provisions of any other law for the time being in force.
Apply it: the IRDA Act does not displace other laws. It adds to them.
Conclude: the insurer cannot claim exemption from other laws on the ground of the IRDA Act.

Answer: The argument is not valid. Under Section 28 of the IRDA Act, 1999, the Act applies in addition to, and not in derogation of, any other law in force, so the insurer must comply with other applicable laws as well.

Example 2

An officer of an insurer wishes to prosecute a competitor for an offence under the Insurance Act, 1938 by directly filing a complaint in court. The insurer is also asked by the Authority to follow a direction and says it will claim compensation for the resulting loss. Advise on both points.

Show the solution

First point: apply section 109. A court takes cognizance of an offence under the Act, rules or regulations only on a complaint made by an officer of the Authority or a person authorised by it.
The insurer's officer is neither, unless authorised, so the court cannot take cognizance on his complaint.
Second point: apply section 110D. No person has any right, in contract or otherwise, to compensation for loss caused by compliance with an order or direction given under the Act.
So the compensation claim fails.

Answer: The court cannot take cognizance on the officer's complaint unless he is an officer of the Authority or authorised by it (section 109). The insurer has no right to compensation for loss from complying with a direction under the Act (section 110D).

Exam tips

Always write the Act name with the section number. Examiners test the IRDA Act versus Insurance Act mix-up.
Memorise the phrase 'in addition to, and not in derogation of' and use it in the first line.
For MCQs, eliminate options that say the Act overrides or replaces other laws.
Give section numbers only for the provisions you know: 28 (IRDA), 28, 31, 58, 64V, 109, 110D, 116A (Insurance Act).

Practice questions from Laws and Regulations related to Insurance Sector

Application of Other Laws Not Barred (Section 28): frequently asked questions

What does Section 28 of the IRDA Act, 1999 say?

It says the provisions of the IRDA Act are in addition to, and not in derogation of, the provisions of any other law for the time being in force. So other laws continue to apply.

Is Section 28 of the Insurance Act, 1938 the same as this section?

No. Section 28 of the Insurance Act deals with returns of investments. Every insurer must submit to the Authority returns giving details of investments made, in the manner specified by the regulations.

Who can file a complaint for an offence under the Insurance Act?

Under section 109, a court takes cognizance only on a complaint made by an officer of the Authority or a person authorised by it.

Can an insurer claim compensation for loss from following an order under the Act?

Under section 110D, no person has a right to compensation for loss caused by the operation of sections 34, 34A, 34E or 37A, or by compliance with an order or direction given under the Act.