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CS Professional · Banking and Insurance - Laws and Practice · General and Health Insurance

Arogya Care Ltd is an insurer primarily engaged in health insurance business. Its compliance officer asks whether it can be relieved from the third party motor risk obligation. Under Section 32D, who may grant such relief and how?

The Authority can exempt such an insurer, acting by regulations. Section 32D's proviso names insurers primarily engaged in health, re-insurance, agriculture or export credit guarantee business. Neither the insurer's board nor the General Insurance Council can grant this exemption.

  1. AThe Authority, by regulations, may exempt an insurer primarily engaged in health businessCorrect
  2. BThe General Insurance Council, by passing a resolution
  3. CThe insurer itself, by a board resolution
  4. DThe Central Government, by a notification for each financial year

Explanation

The proviso to Section 32D lets the Authority, by regulations, exempt an insurer primarily engaged in health, re-insurance, agriculture or export credit guarantee business. The Council and the insurer's board have no such power. The Act does not provide for annual Central Government notifications.

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