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

An Investigating Officer, directed by IRDAI to cause an inspection of the books of Kaveri Insurance Brokers, an insurance intermediary, wishes to question its managing director about business dealings. Which course is permitted under section 33 of the Insurance Act, 1938?

The Officer may examine the managing director on oath in relation to his business. Section 33(4) of the Insurance Act, 1938 gives this power for investigations and inspections, and it covers officers of insurers, intermediaries and insurance intermediaries without needing court or tribunal permission.

  1. AExamine the managing director on oath in relation to his businessCorrect
  2. BQuestion only informally, as oath may be administered only by a court
  3. CQuestion only the auditor, since officers cannot be examined
  4. DExamine on oath only after the Tribunal grants permission

Explanation

Section 33(4) allows an Investigating Officer directed to make an investigation or inspection to examine on oath any manager, managing director or other officer in relation to his business. It covers intermediaries and insurance intermediaries too. No prior court or tribunal permission is required.

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