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

Under the Insurance Act, 1938, an insurer's obligation to serve the rural sector, the unorganised or informal sector and economically vulnerable or backward classes is stated to include insurance for which of the following?

The correct answer is crops. Section 32C of the Insurance Act, 1938 provides that the policies insurers must offer to rural residents, unorganised-sector workers and economically vulnerable or backward classes shall include insurance for crops. The other types of cover are not named there.

  1. ACropsCorrect
  2. BAircraft hulls
  3. CMarine cargo on international voyages
  4. DDirectors' liability

Explanation

Section 32C requires insurers to discharge the obligations under section 32B for rural persons, unorganised sector workers and backward classes, and says such policies shall include insurance for crops. The other options are not mentioned in that provision.

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