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CS Professional · Banking and Insurance - Laws and Practice · Regulatory Framework in Insurance

IRDAI gives Arogya Life Ltd. a written notice suspending its registration because it contravened a regulation made under the Act (clause (d) of Section 3(4)). The notice is received on 5 June. Which effective date specified by IRDAI would be valid under Section 3(5)?

20 July is valid. For a clause (d) contravention, Section 3(5) requires written notice with an effective date between one and two months after receipt. From 5 June, that window runs from 5 July to 5 August, so 20 July qualifies while the other dates fall outside it.

  1. A5 June, the date of receipt
  2. B20 June
  3. C20 JulyCorrect
  4. D5 September

Explanation

For suspension or cancellation under clauses (a), (d), (e), (f), (g) or (i), Section 3(5) requires written notice and an effective date not less than one month and not more than two months from receipt. 20 July falls within 5 July to 5 August. 5 June and 20 June are under one month; 5 September exceeds two months.

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