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

After considering an investigation report and the representation of Kaveri Life Insurance Co. Ltd, IRDAI, by written order, wishes to take action under Section 33(6). Which action is NOT among those the sub-section expressly lists?

The Authority cannot itself order winding up under Section 33(6). It may require corrective action, cancel registration, or direct a person to apply to the court for winding up if the insurer is a company. The winding up is made by the court.

  1. ARequire the insurer to take such action on any matter arising from the report as the Authority thinks fit
  2. BCancel the registration of the insurer
  3. CDirect any person to apply to the court for winding up of the insurer, if it is a company
  4. DDirectly order the winding up of the insurer by the Authority itselfCorrect

Explanation

Section 33(6) lists requiring action, cancelling registration, and directing a person to apply to the court for winding up. The Authority cannot itself wind up; the court does so on application.

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