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CS Professional · Banking and Insurance - Laws and Practice · Functions in Insurance and Compliance related thereto (Part II)

Vikram's insurer refuses to act on his assignment and sends its written reasons, which he receives on 10 June. He wishes to challenge the refusal. What does the Insurance Act, 1938 provide?

Vikram may prefer a claim to the Authority within thirty days from the date he receives the insurer's communication giving reasons for refusal. The Act gives an aggrieved person this remedy, so the insurer's refusal is not final.

  1. AHe may prefer a claim to the Authority within thirty days from receipt of the communicationCorrect
  2. BHe may approach the Authority only after ninety days
  3. CHe has no remedy since the insurer's decision is final
  4. DHe must first obtain the transferor's written consent

Explanation

Section 38(4) lets an aggrieved person prefer a claim to the Authority within thirty days from receipt of the insurer's communication giving reasons. Here, the period runs from 10 June. The other options invent a waiting period, finality or consent.

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