Skip to content

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

A student says the percentage of life and general insurance business that an insurer must do in the rural or social sector is fixed by the insurer's own board. Which body and instrument does the law actually use?

The Authority, that is IRDAI, specifies the percentages of life and general insurance business to be undertaken in the rural or social sector, doing so in the Official Gazette. Insurer boards do not fix them, and the interim authority no longer exists as a separate body.

  1. AThe insurer's board, through its annual business plan
  2. BThe Central Government, by a notification in the Controller of Insurance's name each year
  3. CThe Authority (IRDAI), by specifying the percentages in the Official GazetteCorrect
  4. DThe Interim Insurance Regulatory Authority, which continues to fix them

Explanation

Section 32B says the percentages are as specified in the Official Gazette by the Authority. Section 14(2)(p) of the IRDA Act likewise lists specifying these percentages among the Authority's powers. The Controller of Insurance is appointed only if the Authority is superseded, and the interim authority's assets were transferred to the Authority.

Did you get it right without looking?

One question tells you little. A timed set on Regulatory Framework in Insurance shows your real accuracy, how long you take and where you lose marks.

Practise Regulatory Framework in InsuranceFree diagnostic mock

More Regulatory Framework in Insurance questions