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

IRDAI directed an Investigating Officer to investigate Nilgiri Insurance Brokers. The Officer employed a chartered accountant to help examine the records. The broker objected, saying only the Officer may examine the records. Under section 33 of the Insurance Act, 1938, what is the position?

The objection fails. The proviso to section 33(1) permits the Investigating Officer, wherever necessary, to employ any auditor or actuary or both to assist in an investigation. The intermediary's consent is not required.

  1. AThe objection is valid; no outside person may assist
  2. BThe Officer may employ an auditor or actuary or both, wherever necessary, to assistCorrect
  3. COnly an actuary may be employed, never an auditor
  4. DEmployment needs prior consent of the broker

Explanation

The proviso to section 33(1) allows the Investigating Officer, wherever necessary, to employ any auditor or actuary or both to assist in the investigation. No consent of the intermediary is needed, and auditors are expressly permitted.

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