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

Aurora Re, a foreign insurer domiciled abroad, appoints a representative in India on 10 March to obtain insurance business. Under Section 63 of the Insurance Act, 1938, which statement is correct?

Aurora Re must file the Section 63 particulars with the Authority within three months of appointing the representative, including a statement of the classes of insurance business it will carry on. Any later alteration in those particulars must be furnished to the Authority forthwith.

  1. AIt must file particulars, including a statement of the classes of insurance business it will carry on, with the Authority within three months of the appointment, and report later alterations forthwithCorrect
  2. BIt must file only a list of directors within one year
  3. CFiling is required only if it establishes a branch, not if it appoints a representative
  4. DIt must file the particulars with the Registrar of Companies within six months

Explanation

Section 63 applies where such an insurer establishes a place of business or appoints a representative in India for obtaining business. It must file particulars within three months with the Authority, including (e) the classes of business to be carried on, and must furnish any alteration forthwith. The other options misstate the trigger, period, or recipient.

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