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CS Professional · Banking and Insurance - Laws and Practice · Regulatory Framework in Insurance

The Central Government supersedes the Insurance Regulatory and Development Authority of India under the IRDA Act, 1999. Until the Authority is reconstituted, the Insurance Act, 1938 allows the Central Government to do which of the following?

On supersession of the Authority, the Central Government may appoint a person as Controller of Insurance by notification in the Official Gazette. The appointment lasts only until the Authority is reconstituted. Neither a parliamentary resolution nor the RBI is involved in the appointment.

  1. AAppoint a person as Controller of Insurance by notification in the Official GazetteCorrect
  2. BAppoint the Controller of Insurance by a resolution of Parliament
  3. CDirect the Reserve Bank of India to act as Controller of Insurance
  4. DAppoint the Controller of Insurance only after the Authority is reconstituted

Explanation

If the Authority is superseded, the Central Government may, by notification in the Official Gazette, appoint a person as Controller of Insurance. The appointment lasts only until the Authority is reconstituted, so it cannot wait for reconstitution. The Act provides for no parliamentary resolution and no role for the RBI.

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