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

Suraksha General Insurance Ltd. has been investing policyholder funds in various instruments through the year. Under the Insurance Act, 1938 as amended in 2015, what must every insurer do about the details of those investments?

Every insurer must submit to the Authority returns giving details of its investments, in the form, time and manner, including authentication, specified by regulations. The insurer cannot choose the format, and the duty is not limited to inspection time or to returns made to the Council.

  1. ASubmit to the Authority returns giving details of investments made, in the form, time and manner (including authentication) specified by the regulationsCorrect
  2. BSubmit the details to the Central Government annually in a form chosen by the insurer
  3. CSubmit returns to the General Insurance Council, which forwards them to the Authority at its discretion
  4. DKeep the details in its own records and produce them to the Authority only when an inspection is ordered

Explanation

Section 28 requires every insurer to submit to the Authority returns giving details of investments made. The form, time, manner and authentication are fixed by regulations, not by the insurer. Routing the returns through the Council or the Central Government is not what the section provides.

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