Skip to content

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

Following an investigation of Tapti General Insurance Ltd ordered by IRDAI, the insurer is aggrieved by the order passed on the report. Where can it appeal, and who bears the investigation expenses under Section 33?

The insurer can appeal to the Securities Appellate Tribunal. The investigation expenses are defrayed by the insurer itself, rank in priority over its debts, and are recoverable as an arrear of land revenue, so IRDAI does not bear them.

  1. AAppeal to the High Court; expenses borne by IRDAI
  2. BAppeal to the Securities Appellate Tribunal; expenses defrayed by the insurer and recoverable as arrear of land revenueCorrect
  3. CAppeal to the Central Government; expenses shared equally with IRDAI
  4. DAppeal to the Registrar of Companies; expenses borne by the Investigating Officer

Explanation

Section 33(8) gives an appeal to the Securities Appellate Tribunal. Section 33(9) makes the investigation expenses payable by the insurer, with priority over its debts and recoverable as arrear of land revenue.

Did you get it right without looking?

One question tells you little. A timed set on Inspection, Investigation, Penalty and Appellate Procedure shows your real accuracy, how long you take and where you lose marks.

Practise Inspection, Investigation, Penalty and Appellate ProcedureFree diagnostic mock

More Inspection, Investigation, Penalty and Appellate Procedure questions