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CS Professional · Banking and Insurance - Laws and Practice · Concept of Insurance

Suraksha General Insurance Ltd. began operations after the IRDA Act, 1999 commenced. Its board asks who fixes the percentage of business it must undertake in rural and social sectors. Under the Insurance Act, 1938, who specifies it?

The Authority (IRDAI) specifies, in the Official Gazette, the percentages of life and general insurance business that every insurer must undertake in the rural and social sectors. The insurer's board, the RBI and the Registrar of Companies have no power to fix these percentages.

  1. AThe Authority, specified in the Official GazetteCorrect
  2. BThe insurer's own board by resolution
  3. CThe Reserve Bank of India by circular
  4. DThe Registrar of Companies on incorporation

Explanation

Section 32B requires every insurer to undertake such percentages of life and general insurance business in rural and social sectors as the Authority specifies in the Official Gazette. The insurer's board does not set it.

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