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

After the IRDA Act, 1999 came into force, the Authority was superseded by the Central Government under the IRDA Act. Under the Insurance Act, 1938, what may the Central Government do for the period until the Authority is reconstituted?

If the Authority is superseded, the Central Government may, by Official Gazette notification, appoint a Controller of Insurance. The appointee serves until the Authority is reconstituted. No other body, such as the RBI or an Ombudsman, takes over the regulator's role under this provision.

  1. AAppoint a Controller of Insurance by notification in the Official GazetteCorrect
  2. BDirect the Reserve Bank of India to act as the insurance regulator
  3. CAuthorise the Life Insurance Council to exercise the Authority's powers
  4. DAppoint an Insurance Ombudsman to perform the Authority's functions

Explanation

Section 2B allows the Central Government, where the Authority is superseded, to appoint a Controller of Insurance by Official Gazette notification, until the Authority is reconstituted. The other bodies named have no such role under this section.

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