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

A general insurer, Bharat Shield General Insurance, repeatedly repudiates motor claims on weak grounds. Under the Insurance Act, 1938 as reproduced, which body has the function of bringing such an insurer's prejudicial conduct to the notice of the Authority?

The Executive Committee of the General Insurance Council. Its statutory functions include bringing to the Authority's notice any general insurer acting in a manner prejudicial to the interests of holders of general insurance policies, and advising insurers on standards of conduct and efficient service to policyholders.

  1. AExecutive Committee of the General Insurance CouncilCorrect
  2. BExecutive Committee of the Life Insurance Council
  3. CThe insurer's own board of directors
  4. DThe Administrator appointed under section 52A

Explanation

Section 64L(1)(c) makes it a function of the Executive Committee of the General Insurance Council to bring to the Authority's notice any general insurer acting prejudicially to general policyholders. Section 52A relates to life insurers, so an Administrator under it is not the route here.

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