CS Professional · Banking and Insurance - Laws and Practice · Functions in Insurance and Compliance related thereto (Part II)
Suraksha General Insurance Ltd, a Mumbai-based insurer, has made several investments of its assets during the year. Under the Insurance Act, 1938, as it now stands (Section 28), what is the insurer required to do about these investments?
Every insurer must submit to the Authority returns giving details of the investments made, in the form, time and manner, including authentication, specified by the regulations. The duty is a standing obligation owed to the Authority, not something that arises only on request or goes to the Council.
- ASubmit to the Authority returns giving details of investments made, in the form, time and manner specified by the regulationsCorrect
- BSubmit the investment details only to the General Insurance Council for its records
- CFile investment details with the Registrar of Companies, since the Act leaves the format open
- DSubmit returns to the Authority only when the Authority specifically asks for them in writing
Explanation
Section 28, as substituted in 2015, requires every insurer to submit to the Authority returns giving details of investments made, in such form, time and manner (including authentication) as the regulations specify. The Council is not the recipient, and the duty is not triggered only by a request.
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