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

Two insurers, Kaveri Life and Narmada Life, amalgamate without a scheme approved by the Authority under section 36. In addition to a certified copy of the agreement and the declaration, which further documents must be furnished to the Authority?

When the amalgamation is not under an approved scheme, the insurer must also furnish balance-sheets of each insurer's insurance business in the prescribed Form and certified copies of any other reports on which the scheme was founded, besides the agreement copy and declaration.

  1. AOnly a certified copy of the reinsurance treaties of each insurer
  2. BBalance-sheets of each insurer's insurance business in the prescribed Form, and certified copies of other reports on which the scheme was foundedCorrect
  3. COnly the actuary's valuation report of the larger insurer
  4. DNo further documents are required

Explanation

Under Section 37(c), where the amalgamation is not under an approved scheme, balance-sheets of each insurer's insurance business in the Part II First Schedule Form and certified copies of any other reports on which the scheme was founded must be furnished. The other options are not required by that clause.

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