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

Which of the following insurers may the Authority exempt by regulations from the minimum third party motor vehicle underwriting obligation under Section 32D of the Insurance Act, 1938?

An insurer primarily engaged in health business may be exempted. The proviso to Section 32D allows the Authority to exempt, by regulations, insurers primarily engaged in health, re-insurance, agriculture or export credit guarantee business. Motor own-damage, fire and marine hull insurers are not on that list.

  1. AAn insurer primarily engaged in health businessCorrect
  2. BAn insurer primarily engaged in motor own-damage business
  3. CAn insurer primarily engaged in fire insurance business
  4. DAn insurer primarily engaged in marine hull business

Explanation

The proviso to Section 32D lets the Authority exempt by regulations any insurer primarily engaged in health, re-insurance, agriculture or export credit guarantee business. Of the options, only health appears in that list. Fire, marine hull and motor own-damage are not listed.

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