Skip to content

CMA Final · Risk Management in Banking and Insurance · Introduction to Insurance Business

Under Section 2C(1) of the Insurance Act, 1938 as it now stands, which entity listed below may carry on insurance business in India?

Section 2C(1)(c) allows a foreign company or body engaged in re-insurance to carry on business in India through a branch set up exclusively for re-insurance. Foreign bodies cannot carry on other classes of insurance, and firms or private companies are not among the permitted entities.

  1. AA foreign company establishing a branch in India exclusively for re-insurance businessCorrect
  2. BA private limited company set up by a foreign insurer for direct life cover
  3. CA partnership firm of insurance agents
  4. DA foreign insurer's branch offering direct general insurance in India

Explanation

Section 2C(1)(c) permits a company or body incorporated outside India and engaged in re-insurance to establish a branch in India exclusively for re-insurance business. Foreign bodies may not carry on insurance other than re-insurance, and partnership firms are not listed entities.

Did you get it right without looking?

One question tells you little. A timed set on Introduction to Insurance Business shows your real accuracy, how long you take and where you lose marks.

Practise Introduction to Insurance BusinessFree diagnostic mock

More Introduction to Insurance Business questions