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CS Professional · Banking and Insurance - Laws and Practice · Concept of Insurance

Under Section 63, a foreign insurer files its particulars and later decides to add a new class of business in India. What must it do?

The insurer must forthwith furnish particulars of the change in classes of business to the Authority. Section 63 requires immediate reporting of any alteration in the classes of insurance business to be carried on, so the insurer cannot wait for an annual filing or stay silent.

  1. AForthwith furnish particulars of the alteration in the classes of business to the AuthorityCorrect
  2. BWait until the next annual filing
  3. CInform only its Indian authorised person, with no filing
  4. DNothing, as the classes are fixed at the first filing

Explanation

Section 63 states that if any alteration is made in the classes of business to be carried on, the insurer shall forthwith furnish particulars of the alteration to the Authority. Waiting for an annual filing or doing nothing contradicts this requirement.

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