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CS Professional · Banking and Insurance - Laws and Practice · Concept of Insurance

A student reads an expression in the Insurance Act, 1938 that is not defined in it but is defined in the IRDA Act, 1999. Under section 2A, which meaning applies?

Under section 2A, words not defined in the Insurance Act, 1938 but defined in the LIC Act 1956, the General Insurance Business (Nationalisation) Act 1972 or the IRDA Act 1999 take the meanings assigned in those Acts.

  1. AThe meaning assigned to it in the IRDA Act, 1999, as also for terms defined in the LIC Act, 1956 or the General Insurance Business (Nationalisation) Act, 1972Correct
  2. BThe meaning in the Companies Act, 2013 only
  3. CThe meaning that the insurer's own policy wording gives
  4. DThe meaning is left undefined until the Authority issues a circular

Explanation

Section 2A provides that words used but not defined in the Insurance Act but defined in the LIC Act 1956, the General Insurance Business (Nationalisation) Act 1972 or the IRDA Act 1999 carry the meanings given in those Acts. The other options have no basis in the section.

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