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

Under the Insurance Act, 1938, who may by regulations exempt an insurer primarily engaged in health, re-insurance, agriculture or export credit guarantee business from the obligation to underwrite a minimum percentage of motor third party risk business?

The Insurance Regulatory and Development Authority can grant this exemption. The proviso to section 32D allows the Authority, by regulations, to exempt an insurer primarily engaged in health, re-insurance, agriculture or export credit guarantee business from underwriting the minimum percentage of motor third party risks.

  1. AThe Central Government through a gazette notice only
  2. BThe Insurance Regulatory and Development AuthorityCorrect
  3. CThe General Insurance Council
  4. DThe insurer's own board of directors

Explanation

The proviso to section 32D lets the Authority, by regulations, exempt insurers primarily engaged in health, re-insurance, agriculture or export credit guarantee. The Central Government, a council or the insurer's board is not given this power in the provision.

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