Skip to content

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

An investigation report on Nirmaan Life Insurance Co. Ltd, a company, reveals serious irregularities. After giving the insurer a reasonable opportunity to make a representation, the Authority wishes to have the insurer wound up. Which course is available to it under Section 33?

The Authority can direct any person to apply to the court for winding up of the insurer, if it is a company, and it may do so whether or not registration has been cancelled. It does not wind up by its own order.

  1. AWind up the insurer itself by order, without involving any court
  2. BDirect any person to apply to the court for winding up, whether or not registration has been cancelledCorrect
  3. CDirect winding up only after first cancelling the registration
  4. DRecommend winding up to SAT, which then passes the order

Explanation

Section 33(6)(c) lets the Authority direct any person to apply to the court for winding up of a company insurer, whether or not registration has been cancelled under clause (b). The Authority itself does not wind up, and cancellation is not a precondition.

Did you get it right without looking?

One question tells you little. A timed set on Inspection, Investigation, Penalty and Appellate Procedure shows your real accuracy, how long you take and where you lose marks.

Practise Inspection, Investigation, Penalty and Appellate ProcedureFree diagnostic mock

More Inspection, Investigation, Penalty and Appellate Procedure questions