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

After an investigation report under section 33, IRDAI gave Orion Insurance Ltd a reasonable opportunity to make a representation and then cancelled its registration by written order. Orion claims compensation from the insurer's policyholder-related counterparties for loss from complying with an IRDAI direction under the Act. Which statement is correct?

Orion may appeal the cancellation order to the Securities Appellate Tribunal under section 33(8). Compensation claims for loss from complying with directions under the Act are barred by section 110D, so the remedy is appeal, not damages, and the order is not final.

  1. AOrion may appeal to the Securities Appellate Tribunal against the order under section 33Correct
  2. BOrion may appeal only to the civil court
  3. CNo appeal lies as cancellation is final
  4. DOrion can claim compensation from IRDAI under section 110D

Explanation

Section 33(8) allows an insurer aggrieved by any order under that section to appeal to the Securities Appellate Tribunal. Section 110D bars claims for compensation for loss arising from compliance with an order or direction under the Act, so no compensation lies. Cancellation is not final.

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