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CS Professional · Banking and Insurance - Laws and Practice · Life Insurance

Sunrise Life Insurance Co., an insurance company, is in liquidation. Its policyholder, Meera, believes a reduction of contract amounts is the only way to protect the remaining policyholders. Under Section 61 of the Insurance Act, 1938, who can apply to the Tribunal for an order reducing the insurance contracts?

The application may be made by the liquidator, by or on behalf of the company, by a policy-holder, or by the Authority. Section 61(3) lists all of them, so Meera as a policy-holder can apply, and affected persons the Tribunal considers likely to be affected may be heard.

  1. AOnly the liquidator
  2. BOnly the Authority
  3. COnly the company through its board
  4. DThe liquidator, the company or someone on its behalf, a policy-holder, or the AuthorityCorrect

Explanation

Section 61(3) allows an application by the liquidator, by or on behalf of the company, by a policy-holder, or by the Authority. Any person the Tribunal thinks likely to be affected is entitled to be heard. So Meera as a policy-holder may apply.

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