New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    Which of the following is true regarding the Insolvency

    and Bankruptcy Code (IBC) and its impact on insurance companies in India?  
    A The IBC does not apply to insurance companies in India. Correct Answer Incorrect Answer
    B The IBC allows for the resolution of insolvent insurance companies through a process of liquidation or reorganization. Correct Answer Incorrect Answer
    C The IBC only applies to general insurance companies in India. Correct Answer Incorrect Answer
    D The IBC only applies to life insurance companies in India. Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    The Insolvency and Bankruptcy Code (IBC) is a comprehensive law that was enacted in India in 2016 to address the issue of insolvency and bankruptcy of companies and individuals. The IBC allows for the resolution of insolvent insurance companies through a process of liquidation or reorganization. The code applies to all companies, including insurance companies, and has a significant impact on the functioning of the insurance sector in India. Hence, option B is correct.

    Practice Next