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

Suraksha General Insurance Ltd. is a member of the General Insurance Council. A policyholder complains that the insurer is acting in a manner prejudicial to the interests of holders of general insurance policies. Under the Insurance Act, 1938, which body's Executive Committee is empowered to bring such a case to the notice of the Authority?

The Executive Committee of the General Insurance Council can bring such a case to the Authority's notice. Section 64L lists this as one of its functions for general insurers acting prejudicially to policyholders' interests. The Life Insurance Council covers life insurers and so does not apply here.

  1. AExecutive Committee of the General Insurance CouncilCorrect
  2. BExecutive Committee of the Life Insurance Council
  3. CThe insurer's own statutory auditor
  4. DThe Secretary of the Life Insurance Council

Explanation

Section 64L(1)(c) makes it a function of the Executive Committee of the General Insurance Council to bring to the Authority's notice any general insurer acting prejudicially to policyholders' interests. The Life Insurance Council deals with life insurers, so its committee is the wrong body. Auditors have no such role under this provision.

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