Skip to content

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

IRDAI orders corrective action against Sunrise Health Insurance Ltd. under Section 33(6), and the insurer is aggrieved. The investigation expenses are also demanded from it. Which statement is correct?

The insurer may appeal to the Securities Appellate Tribunal, and the investigation expenses must be paid by the insurer. Under Section 33(9) they have priority over the insurer's debts and are recoverable as an arrear of land revenue, so IRDAI does not bear them.

  1. AThe insurer may appeal to the Securities Appellate Tribunal, and the investigation expenses are payable by the insurer, rank in priority over its debts and are recoverable as an arrear of land revenueCorrect
  2. BThe insurer may appeal to the High Court only, and IRDAI bears the investigation expenses
  3. CThe insurer may appeal to the SAT, but investigation expenses are borne by IRDAI
  4. DThe insurer has no appeal, but the expenses are payable by it with no priority over its debts

Explanation

Section 33(8) allows an aggrieved insurer to appeal to the Securities Appellate Tribunal against any order made under that section. Under Section 33(9), all expenses of and incidental to the investigation are defrayed by the insurer, have priority over its debts and are recoverable as an arrear of land revenue. The other options misstate the forum or who bears the cost.

Did you get it right without looking?

One question tells you little. A timed set on Inspection, Investigation, Penalty and Appellate Procedure shows your real accuracy, how long you take and where you lose marks.

Practise Inspection, Investigation, Penalty and Appellate ProcedureFree diagnostic mock

More Inspection, Investigation, Penalty and Appellate Procedure questions