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The Insurance Act, 1938

( ACT NO. IV Of 1938 )

Power of Chief Controller of Insurance to order investigation
33. (1) The Chief Controller may, at any time investigate the affairs of an insurer and, wherever necessary, employ an auditor or actuary or both for assisting him in any such investigation.
 
 
 
 
(2) It shall be the duty of every manager, managing director or other officer of the insurer to produce before the Chief Controller, auditor or actuary all such books of account, registers and other documents in his custody or power and to furnish him with any such statement or information relating to the affairs of the insurer within such time as the Chief Controller, auditor or actuary may require.
 
 
 
 
(3) When an investigation is made under this section, the Chief Controller may, after giving an opportunity to the insurer to make a representation in writing or be heard in person, by order in writing,-
 
 
 
 
(a) require the insurer to take such action in respect of any matter arising out of the investigation as he may think fit to secure compliance with the provisions of this Act, or
 
 
(b) cancel the registration of the insurer under clause (f) of sub-section (4) of section 3, or
 
 
 
 
(c) apply to the Court for the winding up of the insurer, if a company, whether the registration of the insurer has been cancelled under clause (b) or not.
 
 
 
 
(4) No order made under this section other than an order made under clause (b) of sub-section (3) shall be called in question in any Court.
 
 
 
 
(5) All expenses of, and incidental to, any investigation made under this section shall be defrayed by the insurer, and shall have priority as debts due from the insurer and be recoverable as an arrear of land revenue.

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Ministry of Law, Justice and Parliamentary Affairs