Page 122 - DCOM309_INSURANCE_LAWS_AND_PRACTICES

Unit 7: Insurance Regulatory and Development Authority Act (IRDA Act)

Provided that before issuing any such notification, the Central Government shall give a reasonable Notes
opportunity to the Authority to make representations, if any, of the Authority.
(2) Upon the publication of a notification under sub-section (1) superseding the Authority, -

(a) The Chairperson and other members shall, as from the date of super-session, vacate their
offices as such;
(b) All the powers, functions and duties which may, by or under the provisions of this Act, be
exercised or discharged by or on behalf of the Authority shall, until the Authority is
reconstituted under sub-section (3), be exercised and discharged by the Controller of
Insurance; and
(c) All properties owned or controlled by the Authority shall, until the Authority is
reconstituted under sub-section (3), vest in the Central Government.

(3) On or before the expiration of the period of super-session specified in the notification issued
under sub-section (1), the Central Government shall reconstitute the Authority by a fresh
appointment of its Chairperson and other members and in such case any person who had
vacated his office under clause (a) of sub-section (2) shall not be deemed to be disqualified for
reappointment.
(4) The Central Government shall cause a copy of the notification issued under sub-section (1)
and a full report to any action to be laid before each House of Parliament at the earliest.
20. Furnishing of returns, etc., to central government - (1) The Authority shall furnish to the
Central Government at such time and in such form and manner as may be prescribed, or as the
Central Government may direct to furnish such returns, statements and other particulars in
regard to any proposed or existing programme for the promotion and development of the
insurance industry as the Central Government may, from time to time, require.

(2) Without prejudice to the provisions of sub-section (1), the Authority shall, within nine
months after the close of each financial year, submit to the Central Government a report giving
a true and full account of its activities including the activities for promotion and development of
the insurance business during the previous financial year.
(3) Copies of the reports received under sub-section (2) shall be laid, as soon as may be after they
are received, before each House of Parliament.
21. Chairperson, Members, Officers and Other Employees of Authority to be Public Servants -
The Chairperson, members, officers and other employees of Authority shall be deemed, when
acting or purporting to act in pursuance of any of the provisions of this Act, to be public servants
within the meaning of section 21 of the Indian Penal Code (45 of 1860).
22. Protection of Action Taken in Good Faith - No suit, prosecution or other legal proceedings
shall lie against the Central Government or any officer of the Central Government or any
member, officer or other employee of the Authority for anything which is in good faith done or
intended to be done under this Act or the rules or regulations made thereunder:
Provided that nothing in this Act shall exempt any person from any suit or other proceedings
which might, apart from this Act, be brought against him.
23. Delegation of Powers - (1) The Authority may, by general or special order in writing,
delegate to the Chairperson or any other member or office of the Authority subject to such
conditions, if any, as may be specified in the order such of its powers and functions under this
Act as it may deem necessary.

(2) The Authority may, by a general or special order in writing, also form committees of the
members and delegate to them the powers and functions of the Authority as may be specified by
the regulations.

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