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CS Executive · Setting Up of Business, Industrial and Labour Laws · Financial Services Organization

Section 2CA of the Insurance Act, 1938 empowers the Central Government, by notification, to deal with insurers carrying on business in a Special Economic Zone. Which is a power it confers?

The Central Government may, by notification, direct that any provision of the Insurance Act shall not apply to such insurers in a Special Economic Zone, or shall apply only with specified exceptions, modifications and adaptations, as provided in section 2CA.

  1. ATo direct that any provision of the Act shall not apply to such an insurer in an SEZCorrect
  2. BTo transfer the SEZ insurer's regulation to the Reserve Bank
  3. CTo abolish the Insurance Act within all SEZs permanently without notification
  4. DTo appoint the IFSCA as the insurance Authority across India

Explanation

Section 2CA allows the Central Government, by notification, to direct that provisions of the Act shall not apply to such insurers in an SEZ, or shall apply only with specified exceptions, modifications and adaptations. It does not transfer regulation to the RBI, work without notification, or appoint the IFSCA nationwide.

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