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

A foreign reinsurer incorporated outside India, Alpine Re AG, wants relief from certain provisions of the Insurance Act, 1938 while dealing with Indian insurers. Under Section 116, who can grant exemption and how?

The Central Government may exempt it by notification in the Official Gazette. The notification must specify the provisions of the Act exempted, and the exemption may be absolute or subject to conditions or modifications. The Authority and the Councils do not hold this power.

  1. AThe Authority, by regulation, for any provisions of the Act
  2. BThe General Insurance Council, by resolution approved by the Authority
  3. CThe Central Government, by notification in the Official Gazette, specifying the provisions and any conditions or modificationsCorrect
  4. DThe Executive Committee of the Life Insurance Council, through bye-laws

Explanation

Section 116(1) empowers the Central Government, by Gazette notification, to exempt an insurer constituted, incorporated or domiciled outside India from specified provisions of the Act, absolutely or subject to conditions or modifications. The Authority and the Councils have no such power under this section.

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