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

    Question

    The ______________ may if it is satisfied that it is

    necessary to issue directions to insurers generally or to any insurer in particular, he may, from time to time, issue such directions as he deems fit, and the insurers or the insurer, as the case may be, shall be bound to comply with such directions, under the Insurance Act, 1938?
    A Authority Correct Answer Incorrect Answer
    B Administrator Correct Answer Incorrect Answer
    C Central Government Correct Answer Incorrect Answer
    D All the above Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Explanation: Section 34 Power of the Authority to issue directions- (1) Where the 2[Authority] is satisfied that-- (a) in the public interest; or (b) to prevent the affairs of any insurer being conducted in a manner detrimental to the interests of the policy-holders or in a manner prejudicial to the interests of the insurer; or (c) generally to secure the proper management of any insurer, it is necessary to issue directions to insurers generally or to any insurer in particular, he may, from time to time, issue such directions as he deems fit, and the insurers or the insurer, as the case may be, shall be bound to comply with such directions.

    Practice Next