Section 105C of IA : Section 105C: Power To Adjudicate

Explanation using Example

Example:

Imagine a scenario where an insurance company is suspected of violating the guidelines under section 42 of the Insurance Act, 1938, by employing agents who are not properly licensed. To investigate this matter, the Insurance Regulatory and Development Authority (IRDA) appoints an adjudicating officer, who is at least at the rank of a Joint Director, to conduct an inquiry.

The adjudicating officer conducts the inquiry, providing the insurance company with a fair opportunity to present their case. After reviewing the evidence, the officer may find that the insurance company did indeed employ unlicensed agents. The officer then submits a report to the IRDA recommending an appropriate penalty for the non-compliance.

The IRDA reviews the report and, before imposing any penalty, gives another opportunity to the insurance company to be heard. After considering the company's defense, if any, the IRDA decides on the penalty as per the provisions of section 105C of the Insurance Act, 1938.