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Insurance Laws and Practices

Notes (b) The other expenses of the Authority in connection with the discharge of its functions and
for the purposes of this Act.
17. Accounts and Audit - (1) The Authority shall maintain proper accounts and other relevant
records and prepare an annual statement of accounts in such form as may be prescribed by the
Central Government in consultation with the Comptroller and Auditor-General of India.

(2) The accounts of the Authority shall be audited by the Comptroller and Auditor-General of
India at such intervals as may be specified by him and any expenditure incurred in connection
with such audit shall be payable by the Authority to the Comptroller and Auditor-General.
(3) The Comptroller and Auditor-General of India and any other person appointed by him in
connection with the audit of the accounts of the Authority shall have the same rights, privileges
and authority in connection with such audit as the Comptroller and Auditor-General generally
has in connection with the audit of the Government accounts and, in particular, shall have the
right to demand the production of books of account, connected vouchers and other documents
and papers and to inspect any of the offices of the Authority.

(4) The accounts of the Authority as certified by the Comptroller and Auditor-General of India
or any other person appointed by him in this behalf together with the audit-report thereon shall
be forwarded annually to the Central Government and that Government shall cause the same to
be laid before each House of Parliament.

7.4.6 Chapter VI – Miscellaneous

18. Power of Central Government to Issue Directions - (1) Without prejudice to the foregoing
provisions of this Act, the Authority shall, in exercise of its powers or the performance of its
functions under this Act, be bound by such directions on questions of policy, other than those
relating to technical and administrative matters, as the Central Government may give in writing
to it from time to time:

Provided that the Authority shall, as far as practicable, be given an opportunity to express its
views before any direction is given under this sub-section.

(2) The decision of the Central Government, whether a question is one of policy or not, shall be
final.
19. Power of Central Government to Supersede Authority - (1) If at any time the Central
Government is of the opinion-
(a) That, on account of circumstances beyond the control of the Authority, it is unable to
discharge the functions or perform the duties imposed on it by or under the provisions of
this Act, or
(b) That the Authority has persistently defaulted in complying with any direction given by
the Central Government under this Act or in the discharge of the functions or performance
of the duties imposed on it by or under the provisions of this Act and as a result of such
default the financial position of the Authority or the administration of the Authority has
suffered; or
(c) That circumstances exist which render it necessary in the public interest so to do, the
Central Government may, be notification and for reasons to be specified therein, supersede
the Authority for such period, not exceeding six months, as may be specified in the
notification and appoint a person to be the Controller of Insurance under section 2B of the
Insurance Act, 1938 (4 of 1938), if not already done:

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