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CS Professional · Banking and Insurance - Laws and Practice · Inspection, Investigation, Penalty and Appellate Procedure

After an inspection report on Bharat General Insurance Ltd, IRDAI proposes to cancel its registration under section 33(6). Which statement is correct?

IRDAI may cancel registration only after giving the insurer a reasonable opportunity to represent on the report. An insurer aggrieved by the order may appeal to the Securities Appellate Tribunal under section 33(8).

  1. AIRDAI may cancel at once without hearing the insurer
  2. BIRDAI may cancel only after giving the insurer such opportunity to make a representation on the report as it considers reasonable, and the insurer may appeal to the Securities Appellate TribunalCorrect
  3. COnly the Central Government can cancel registration, and appeal lies to the High Court
  4. DIRDAI may cancel but only through a court order, with no appeal

Explanation

Section 33(6) requires the Authority to give such opportunity to make a representation as seems reasonable before ordering cancellation. Section 33(8) lets an aggrieved insurer appeal to the Securities Appellate Tribunal. The other options misstate the forum or deny a hearing.

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