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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. Under the Insurance Act, 1938, what may the Central Government do in this situation?

The Central Government may appoint a Controller of Insurance by notification in the Official Gazette. The appointment is temporary and continues only until the Authority is reconstituted under the IRDA Act, 1999, following its supersession.

  1. AAppoint a Controller of Insurance by notification in the Official Gazette until the Authority is reconstitutedCorrect
  2. BAppoint a Controller of Insurance permanently, replacing the Authority
  3. CDirect the RBI to exercise all powers of the Authority until the next Parliament session
  4. DAppoint a Controller of Insurance by a resolution of the insurers' council

Explanation

Section 2B(1) lets the Central Government, if the Authority is superseded under section 19(1) of the IRDA Act, 1999, appoint a Controller of Insurance by Gazette notification. The appointment lasts only till the Authority is reconstituted. A permanent replacement is therefore wrong.

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