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CS Professional · Banking and Insurance - Laws and Practice · General and Health Insurance

Gramin Bima Cooperative Society is registered under the Multi-State Cooperative Societies Act, 2002 and wants to carry on general insurance business. Considering section 2C of the Insurance Act, 1938 as amended, which statement is correct?

Such a society is within the permitted forms. Section 2C(1)(b) recognises societies registered under the Co-operative Societies Act, 1912, state cooperative laws or the Multi-State Cooperative Societies Act, 2002. It does not need an exemption notification, and it is not limited to public companies or re-insurance.

  1. AIt cannot, because only public companies may carry on insurance business
  2. BIt may qualify as an eligible entity under section 2C(1)(b), since such a registered cooperative society is listedCorrect
  3. CIt can only act as a re-insurer through a foreign branch
  4. DIt may do so only under a Central Government notification valid for up to three years

Explanation

Section 2C(1)(b) lists a society registered under the Co-operative Societies Act, 1912, state cooperative laws, or the Multi-State Cooperative Societies Act, 2002. So it is among the permitted forms. The three-year notification relates to exemptions from the section, not to eligible entities. Option A ignores clause (b).

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