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

Ravi Sharma, a policyholder, alleges that an insurer has contravened a regulation made under the Insurance Act, 1938 and files a private criminal complaint in a magistrate's court. Under the Act as it now stands, how should the court proceed?

The court can take cognizance only on a complaint made by an officer of the Authority or by a person the Authority has authorised. A private policyholder's complaint does not suffice, because Section 109 restricts cognizance of offences under the Act, its rules and regulations to that route.

  1. AIt may take cognizance on the complaint of any aggrieved policyholder
  2. BIt may take cognizance only on a complaint made by an officer of the Authority or a person authorised by itCorrect
  3. CIt may take cognizance only on a complaint by the Central Government
  4. DIt may take cognizance suo motu without any complaint

Explanation

Section 109 bars any court from taking cognizance of an offence under the Act, or its rules or regulations, except on a complaint by an officer of the Authority or a person authorised by it. A private policyholder's complaint therefore cannot found cognizance. The Central Government has no such role under this section.

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