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CS Professional · Banking and Insurance - Laws and Practice · Regulatory Framework in Insurance

A CS is asked whether the books of account and other documents of the interim body passed to the Authority, and whether immovable property and rights arising from properties were included. Which reading of the Explanation to Section 13(a) of the IRDA Act, 1999 is correct?

Assets are deemed to include all rights, powers and properties, movable or immovable, cash balances, deposits, and interests arising from them, along with related books of account and documents, so immovable property and records pass to the Authority without a separate transfer deed.

  1. AAssets deemed to include rights, powers and properties movable or immovable, cash balances, deposits, related interests and rights, and the books of account and documents relating to themCorrect
  2. BAssets cover only movable property and cash; immovable property needs a separate transfer deed
  3. CAssets include properties but books of account stay with the Central Government
  4. DAssets include only cash balances and deposits actually in a bank account

Explanation

The Explanation states that assets are deemed to include all rights and powers and all properties, movable or immovable, including cash balances, deposits and interests and rights in or arising out of them, along with books of account and other documents relating to them. The other options narrow this wording.

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