Skip to content

CS Professional · Banking and Insurance - Laws and Practice · Functions in Insurance and Compliance related thereto (Part V)

A claimant, Ms. Nair, argues that her insurer should compensate her for a loss caused when the insurer complied with a direction issued to it under the Insurance Act, 1938. What is the legal position under section 110D?

Section 110D bars any claim for compensation, in contract or otherwise, for loss caused by an insurer's compliance with an order or direction under the Insurance Act. Ms. Nair therefore has no right to compensation from the insurer on that ground.

  1. ANo person has a right, in contract or otherwise, to compensation for loss caused by an insurer's compliance with an order or direction given under the ActCorrect
  2. BShe may recover full compensation in contract from the insurer
  3. CShe may recover compensation only if the loss exceeds Rs 1 crore
  4. DShe may recover compensation only from the Executive Committee of the General Insurance Council

Explanation

Section 110D bars any right to compensation, whether in contract or otherwise, for loss incurred by reason of the insurer's compliance with an order or direction given under the Act. A contractual claim therefore does not succeed, and no monetary threshold or alternative payer exists in the provision.

Did you get it right without looking?

One question tells you little. A timed set on Functions in Insurance and Compliance related thereto (Part V) shows your real accuracy, how long you take and where you lose marks.

Practise Functions in Insurance and Compliance related thereto (Part V)Free diagnostic mock

More Functions in Insurance and Compliance related thereto (Part V) questions