CS Professional · Banking and Insurance - Laws and Practice · Life Insurance
A private insurer, Surya Assurance Ltd, held a registration certificate under the Insurance Act and was writing life policies on the day before the appointed day under the LIC Act. After the appointed day, what is the effect on its certificate of registration?
The certificate ceases to have effect to the extent it authorises life insurance business in India. From the appointed day the Corporation holds the exclusive privilege of carrying on that business, except where the Act expressly provides otherwise.
- AIt stays valid for life insurance for five more years
- BIt ceases to have effect in so far as it authorises life insurance business in India, because the Corporation has the exclusive privilegeCorrect
- CIt remains valid if the insurer pays a fee to the Corporation
- DIt is suspended and revives automatically when the Corporation is wound up
Explanation
Section 30 gives the Corporation the exclusive privilege of carrying on life insurance business in India from the appointed day, except as the Act expressly provides. Any registration certificate held by an insurer immediately before that day ceases to have effect so far as it authorises life insurance business in India. No grace period, fee or automatic revival is provided.
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