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CS Professional · Banking and Insurance - Laws and Practice · Functions in Insurance and Compliance related thereto (Part IV)

Sagar Mutual Insurance Ltd., a general insurer, is accused by a fellow insurer of paying claims late and treating policyholders unfairly. Under the Insurance Act, 1938 as given, which body has the function of bringing such an insurer's prejudicial conduct to the notice of the Authority?

The Executive Committee of the General Insurance Council brings to the Authority's notice any general insurer acting in a manner prejudicial to the interests of general insurance policyholders. This is one of its statutory functions under section 64L, alongside advising insurers on conduct and service standards.

  1. AThe Executive Committee of the General Insurance CouncilCorrect
  2. BThe Executive Committee of the Life Insurance Council
  3. CThe Central Government through a reciprocal notification
  4. DThe Tribunal acting under the winding-up provisions

Explanation

Section 64L(1)(c) makes it a function of the Executive Committee of the General Insurance Council to bring to the Authority's notice any general insurer acting prejudicially to the interests of general insurance policyholders. The Life Insurance Council does not deal with general insurance business. The Tribunal and the Central Government have no such role here.

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