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

Several policyholders complain that Bluewave General Insurance Ltd. is delaying motor claim settlements. The Executive Committee of the General Insurance Council wishes to act on the complaints. Under the Insurance Act, 1938, which step is within its statutory functions?

The Executive Committee may bring to the Authority's notice the case of a general insurer acting prejudicially to policyholders' interests. Removing the CEO or appointing an Administrator belongs to the Authority, and the Committee only advises on expense control.

  1. AAppointing an Administrator to run Bluewave
  2. BRemoving Bluewave's chief executive officer from office
  3. CBringing to the notice of the Authority the case of an insurer acting in a manner prejudicial to the interests of holders of general insurance policiesCorrect
  4. DDirectly fixing the maximum expenses of management for Bluewave

Explanation

Section 64L(1)(c) empowers the Executive Committee to bring such an insurer's case to the Authority's notice. Removal of managerial persons and appointment of an Administrator are powers of the Authority (sections 34B and 52A), and the Committee only advises on expense control.

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