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

During an inspection of a general insurer, an Investigating Officer asks the Chief Financial Officer to answer questions on the insurer's business, on oath. The CFO objects that only a court can administer an oath. Which statement is correct under Section 33 of the Insurance Act, 1938?

The Investigating Officer may examine the CFO on oath. Section 33(4) empowers an officer making an investigation or an inspection to examine any manager, managing director or other officer of the insurer on oath about his business, and no court or tribunal permission is needed.

  1. AThe Investigating Officer may examine on oath any manager, managing director or other officer of the insurer in relation to his businessCorrect
  2. BAn oath may be administered only to the managing director
  3. CAn oath may be administered only after the Securities Appellate Tribunal permits it
  4. DExamination on oath is allowed only for investigation, not for inspection

Explanation

Section 33(4) allows an Investigating Officer directed to make an investigation under sub-section (1) or an inspection under sub-section (2) to examine on oath any manager, managing director or other officer in relation to his business. The CFO is an officer, and the power covers inspection as well as investigation.

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