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

Gramin Bima Ltd., a general insurer, wrote 1,000 policies in a year, of which 80 were to rural-sector persons. Which obligation under the Insurance Act, 1938 text applies to its rural business?

Every insurer, including a general insurer, must provide policies to rural persons, unorganised-sector workers and economically vulnerable or backward classes as specified in regulations, and these policies include crop insurance. The duty is not restricted to life insurers or to public sector companies.

  1. ARural obligations apply only to life insurers
  2. BPolicies to rural persons, unorganised workers and backward classes must be offered per regulations, and such policies include crop insuranceCorrect
  3. CRural policies must be limited to crop insurance only
  4. DOnly public sector insurers must discharge rural obligations

Explanation

Section 32C requires every insurer, life or general, to discharge the section 32B obligations for rural sector persons, unorganised workers and economically vulnerable or backward classes, as specified by regulations. It states that such policies shall include insurance for crops. It is not limited to life insurers, public sector insurers or crops alone.

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