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

IRDAI issues a written order directing Mr. Rao to investigate the affairs of Suraksha Life Insurance Ltd. Mr. Rao finds that the work needs actuarial support. Under Section 33 of the Insurance Act, 1938, what may he do?

The Investigating Officer may employ an auditor, an actuary or both wherever necessary to assist the investigation. Section 33(1) proviso gives this power directly, so neither a further IRDAI order nor the insurer's consent is needed.

  1. AEmploy an auditor or an actuary or both to assist him, wherever necessaryCorrect
  2. BEmploy an auditor only; an actuary may be engaged only by the insurer
  3. CSeek the Authority's fresh order before engaging any outside professional
  4. DEmploy outside professionals only if the insurer consents in writing

Explanation

The proviso to Section 33(1) lets the Investigating Officer, wherever necessary, employ any auditor or actuary or both to assist in the investigation. No fresh order or insurer consent is required, and actuaries are not excluded.

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