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IAI Actuarial Core Principles · Business Management · Professional negligence

In 2019 an actuary gave advice to a Hyderabad firm. The firm discovered the error in 2023 and sued in 2024. The actuary argues the claim is time-barred. Which approach is correct in principle?

Limitation is governed by statute: a fixed period generally runs from when the cause of action accrued, with statutory extensions for matters like fraud or concealment. Claims are not unlimited in time, and the size of the loss does not remove the time bar.

  1. ANo time limit applies to claims against professionals
  2. BThe claim is barred automatically after one year in all cases
  3. CLimitation depends on the applicable statute, and the period generally runs from when the right to sue accrued, subject to statutory extensions such as for fraud or concealmentCorrect
  4. DThe period runs only from the date the actuary retires
  5. The court may ignore limitation if the loss is large

Explanation

Indian limitation law sets fixed periods for suits, normally running from accrual of the cause of action, with specified extensions such as fraud or concealment. It is not unlimited, not one year for all, and size of loss does not override it.

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