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

During an inspection of Bharat Life Insurance Ltd., the Investigating Officer asks the managing director to furnish a statement on reinsurance arrangements within 5 days. The managing director replies that he will supply it whenever convenient. Which statement best reflects section 33 of the Insurance Act, 1938?

The statement must be furnished within the time the Investigating Officer specifies. Section 33(3) of the Insurance Act, 1938 obliges managers, managing directors and other officers to give information within the time the Officer sets, for both investigation and inspection.

  1. AThe Officer cannot fix a time limit; the officer may respond within a reasonable period of his own choosing
  2. BTime may be fixed only by IRDAI Chairperson, not the Investigating Officer
  3. CThe statement must be furnished within the time the Investigating Officer specifiesCorrect
  4. DA time limit applies only to investigation, not to inspection

Explanation

Section 33(3) requires officers to furnish statements and information as the Investigating Officer may require within such time as the Officer may specify. This applies to both investigation under sub-section (1) and inspection under sub-section (2). The managing director cannot set his own timeline.

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