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CMA Final · Risk Management in Banking and Insurance · Concept and Types of Health Insurance Policies

Under the proviso to Section 32D of the Insurance Act, 1938 (as reproduced), the Authority may by regulations exempt an insurer from the minimum third-party motor underwriting obligation if the insurer is:

The Authority may exempt an insurer primarily engaged in health, re-insurance, agriculture or export credit guarantee business from the minimum third-party motor underwriting percentage under Section 32D. This exemption is by regulations, so a standalone health insurer need not underwrite motor third-party risks.

  1. AAny insurer with a paid-up capital below the specified limit
  2. BAny life insurer writing annuity business
  3. CPrimarily engaged in the business of health, re-insurance, agriculture or export credit guaranteeCorrect
  4. DAny insurer that has not issued a motor policy in the last three years

Explanation

The proviso allows exemption for insurers primarily engaged in health, re-insurance, agriculture or export credit guarantee business. The other conditions do not appear in the text.

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