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

During an inspection of Bharat General Insurance Ltd.'s books, the Investigating Officer finds that claims data is held by an outsourced service provider, Datacore Services. Under Section 33, who must produce the books, registers, documents and database relating to the insurer's affairs?

The duty extends to every manager, managing director or other officer of the insurer, including a service provider or contractor where services are outsourced. Section 33(3) expressly covers them, so Datacore's officers must produce the database within the time the Investigating Officer specifies.

  1. AOnly the insurer's managing director, since outsourcing does not shift custody duties
  2. BOnly the insurer's statutory auditor
  3. CEvery manager, managing director or other officer of the insurer, including a service provider or contractor where services are outsourcedCorrect
  4. DOnly officers of the insurer, as the service provider is bound solely by its contract

Explanation

Section 33(3) makes it the duty of every manager, managing director or other officer of the insurer, including a service provider or contractor of outsourced services, to produce the books, registers, documents and database in his custody or power. The option limiting the duty to insurer officers ignores this express inclusion.

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