Banking and Insurance - Laws and Practice · Inspection, Investigation, Penalty and Appellate Procedure

Duties of Insurers and Officers During Inspection

Updated 11 October 2026 · Fact-checked

Under Section 33(3) of the Insurance Act, 1938, every manager, managing director or other officer of an insurer, including its outsourced service provider or contractor, must produce all books of account, registers, documents and the database in his custody, and furnish the statements and information the Investigating Officer requires, within the time the officer specifies.

Understand Duties of Insurers and Officers During Inspection

IRDAI (the Authority) can order an investigation of an insurer, an intermediary or an insurance intermediary. The person it names is the Investigating Officer. The officer may also have the books of account inspected by his own officers. The law is only useful if the insurer cooperates. So the Act places a clear duty on those who run the insurer.

The duty sits in Section 33(3). It falls on every manager, managing director or other officer of the insurer. It also reaches a service provider or contractor where the insurer has outsourced services. It covers intermediaries and insurance intermediaries too. Outsourcing does not hide records from the regulator.

The duty has two parts. First, produce all books of account, registers, other documents and the database in the officer's custody or power. Second, furnish any statement and information about the affairs of the insurer that the Investigating Officer requires. Both must be done within the time the Investigating Officer specifies. The officer, not the insurer, sets the deadline.

Section 33(4) adds a power. The Investigating Officer may examine on oath any manager, managing director or other officer, including an outsourced service provider or contractor, in relation to his business. Section 33(2) lets the inspection go ahead despite Section 210 of the Companies Act, 2013, and the officer must give the insurer a copy of the inspection report.

Non-cooperation has consequences. Under Section 33(6), after hearing the insurer, the Authority may require action, cancel registration, or direct a person to apply to court for winding up. Section 34H also allows search and seizure where a person has failed or is likely to fail to produce documents. Section 33(9) makes the insurer bear the costs, and Section 33(8) gives a right of appeal to the Securities Appellate Tribunal.

Key rules to remember

Duty to produce (Section 33(3)): Officer must produce: books of account + registers + other documents + database in his custody or power; Applies to a manager, managing director or other officer, including a service provider or contractor of an outsourced service.
Duty to furnish information (Section 33(3)): Furnish statements and information on the affairs of the insurer, as the Investigating Officer requires, within the time he specifies; The time limit is fixed by the Investigating Officer.
Examination on oath (Section 33(4)): Investigating Officer may examine on oath any manager, managing director or other officer in relation to his business; Extends to outsourced service providers and contractors.
Report copy (Section 33(2)): Investigating Officer must supply the insurer a copy of the inspection report; Inspection operates notwithstanding Section 210 of the Companies Act, 2013.
Consequences (Section 33(6)): After reasonable opportunity to represent: require action, or cancel registration, or direct a winding-up application; The winding-up direction applies if the entity is a company, whether or not registration was cancelled.
Appeal and costs (Section 33(8), (9)): Appeal to Securities Appellate Tribunal; investigation expenses borne by the insurer; Expenses have priority over the insurer's debts and are recoverable as an arrear of land revenue.
Search and seizure trigger (Section 34H(1)(a)): Failure to produce books required under Section 33(2) lets the Chairperson authorise a search by an officer not below Deputy Director rank; Seized documents cannot be retained beyond 180 days without written reasons and the Chairperson's approval.

How to solve Duties of Insurers and Officers During Inspection questions

Exam questions give a short fact pattern, such as an officer refusing documents, and ask for the legal position. Use the provision, facts, conclusion pattern.

1Identify who is involved: insurer, intermediary, insurance intermediary, an officer, or an outsourced service provider.
2Identify the stage: investigation under Section 33(1), inspection under Section 33(2), or search and seizure under Section 34H.
3State the duty in Section 33(3): produce books of account, registers, documents and database, and furnish statements and information within the time specified.
4Apply it to the facts. Check what was withheld, who held it, and whether the deadline set by the Investigating Officer was missed.
5Mention supporting powers if relevant: examination on oath under Section 33(4), and search and seizure under Section 34H.
6State the consequences under Section 33(6): action, cancellation of registration or a winding-up direction, after a reasonable opportunity to make a representation.
7Add remedies and costs: appeal to the Securities Appellate Tribunal under Section 33(8) and expenses borne by the insurer under Section 33(9).
8Close with a one-line conclusion and a practical compliance point, such as keeping records ready and tracking deadlines.

Quickest way: Who, what, when, then what

When to use it: Use it for short-answer questions or when time is tight.

Who: any manager, managing director or officer, plus outsourced service providers and contractors.
What: produce books, registers, documents and database; furnish statements and information.
When: within the time the Investigating Officer specifies.
Then what: examination on oath, Section 33(6) action after a hearing, possible Section 34H search, appeal to the Securities Appellate Tribunal.

Common mistakes in Duties of Insurers and Officers During Inspection

Saying the duty applies only to the insurer as a company.
Students read the heading and forget the wording of the sub-section.
Fix: Section 33(3) names every manager, managing director or other officer, and extends to service providers and contractors of outsourced services.
Leaving out the database.
Students remember books and registers from older versions of such provisions.
Fix: Include the database in your list of items to be produced.
Saying the insurer can decide the time limit.
Students assume ordinary business timelines apply.
Fix: State that the Investigating Officer specifies the time.
Claiming the Authority can cancel registration immediately on non-cooperation.
Students skip the hearing requirement.
Fix: Under Section 33(6), the Authority must first give a reasonable opportunity to make a representation on the report.
Confusing the appeal forum.
Students link appeals to the Central Government or a court by habit.
Fix: Section 33(8) provides an appeal to the Securities Appellate Tribunal.
Forgetting that costs fall on the insurer.
Costs seem a minor point.
Fix: Mention Section 33(9): expenses are defrayed by the insurer, have priority over its debts and are recoverable as an arrear of land revenue.

Worked examples

Example 1

The Authority orders an investigation of Suraksha Life Insurance Ltd. The Investigating Officer asks the company's Chief Financial Officer for the policy database and claim registers within seven days. The CFO says the database is held by an outsourced IT vendor and refuses to produce it. Advise.

Show the solution

Provision: Section 33(3) requires every manager, managing director or other officer, including a service provider or contractor of an outsourced service, to produce books, registers, documents and the database in his custody or power, and to furnish information within the time specified.
Analysis: The CFO is an officer. The database falls within the term database, and outsourcing does not remove it from the duty. The vendor is itself covered as a service provider. The seven-day time was set by the Investigating Officer, which the Act allows.
Consequence: Refusal is a breach. The Investigating Officer may examine officers on oath under Section 33(4). The Authority may, after giving a reasonable opportunity to represent, require action or cancel registration under Section 33(6). Section 34H search and seizure may also be considered.
Conclusion and practice: The CFO must obtain and produce the database within the time. The company should ensure outsourcing contracts oblige vendors to give access to records.

Answer: The refusal is not valid. The CFO and the outsourced vendor must produce the database and claim registers within the time specified by the Investigating Officer. Failure exposes the company to action under Section 33(6) and possible search and seizure under Section 34H.

Example 2

After an inspection, the Investigating Officer reports that officers of Bharat General Insurance Ltd. delayed producing documents. The company wants to know what the Authority may do and what remedies it has.

Show the solution

Provision: Under Section 33(5) the Investigating Officer reports to the Authority on the inspection. Under Section 33(2) he must supply the insurer a copy of the inspection report.
Authority's powers: Under Section 33(6), on receiving the report, and after giving a reasonable opportunity to make a representation, the Authority may by written order require the insurer to take action on matters in the report, cancel registration, or direct a person to apply to court for winding up if it is a company.
Procedure: The company must be heard before any order, so it should file a representation explaining the delay and the corrective steps taken.
Remedy: An aggrieved insurer may appeal to the Securities Appellate Tribunal under Section 33(8).
Costs: Under Section 33(9) the expenses of the investigation are borne by the insurer.

Answer: The Authority may, after hearing the company, require corrective action, cancel registration or direct a winding-up application. The company may file a representation first and, if aggrieved by an order, appeal to the Securities Appellate Tribunal. It must bear the investigation expenses.

Exam tips

Write the duty with its four elements: who, what to produce, what to furnish, and the time set by the Investigating Officer.
Quote Section 33(3) for the duty, Section 33(4) for oath, Section 33(6) for consequences, Section 33(8) for appeal and Section 34H for search and seizure.
In case questions, always mention outsourced service providers or contractors if the facts involve outsourcing.
End with a practical compliance point, such as maintaining records and a point person for regulator requests.
Link the answer to the hearing requirement before the Authority acts under Section 33(6).

Practice questions from Inspection, Investigation, Penalty and Appellate Procedure

Duties of Insurers and Officers During Inspection: frequently asked questions

Who must produce books during an IRDAI inspection?

Every manager, managing director or other officer of the insurer must do so under Section 33(3). The duty also covers service providers and contractors of outsourced services, and officers of intermediaries and insurance intermediaries.

What must be produced to the Investigating Officer?

Books of account, registers, other documents and the database in the officer's custody or power. The officer must also furnish statements and information about the affairs of the insurer as required.

What happens if an insurer does not cooperate?

After hearing the insurer, the Authority may require action, cancel registration or direct a winding-up application under Section 33(6). Section 34H also allows search and seizure of documents where production is not made.

Can the insurer appeal against an order under Section 33?

Yes. Section 33(8) allows an aggrieved insurer, intermediary or insurance intermediary to appeal to the Securities Appellate Tribunal.