IAI Actuarial Core Principles · Business Management · Professional negligence

Kavita, an appointed actuary, gave a report to an insurer. A client, Deepak, who had suffered loss from errors in it, learned of them in 2020 and waited. Which principle about limitation is correct under Indian law in general terms?

A claim must be filed within the prescribed limitation period, and once that period expires the remedy is generally barred even if the claim was strong. Limitation applies to tort as well as contract, and it does not depend on whether the professional still practises.

1. ALimitation never applies to professional negligence claims
2. BA claim must be brought within the prescribed period, after which the remedy is generally barred even if the claim had meritCorrect
3. CLimitation only runs while the professional is still practising
4. DThe court must always extend limitation if the loss is large
5. Limitation applies only to claims in contract and never to tort