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CMA Final · Corporate and Economic Laws · Laws and Regulations related to Insurance Sector

Under Section 32D of the Insurance Act, 1938, every insurer carrying on general insurance business must underwrite a minimum percentage of business in which class of risk?

The correct answer is third party risks of motor vehicles. Section 32D requires each insurer carrying on general insurance business to underwrite the minimum percentage of such business that the regulations specify. Crop insurance belongs to the rural-sector obligation in Section 32C, not to this provision.

  1. AThird party risks of motor vehiclesCorrect
  2. BCrop risks of small farmers
  3. CMarine cargo risks on export shipments
  4. DPersonal accident risks of employees

Explanation

Section 32D obliges every general insurer to underwrite the minimum percentage of insurance business in third party risks of motor vehicles that the regulations specify. Crop insurance appears in Section 32C, which concerns the rural sector, so it is not the answer here.

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