New Enroll in our GIC Finance Online Course Here!

    Register

    Question

    What is the penalty for withholding property, etc. as

    per section 30 of the General Insurance Business (Nationalisation) Act?
    A Imprisonment for a term which may extend to one year Correct Answer Incorrect Answer
    B Imprisonment for a term which may extend to one year, or with fine which may extend to one thousand rupees Correct Answer Incorrect Answer
    C Imprisonment for a term which may extend to one year, or with fine which may extend to two thousand rupees, or with both Correct Answer Incorrect Answer
    D Imprisonment for a term which may extend to one year, or with fine which may extend to one thousand rupees, and with both Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Section 30.   Penalty for withholding property, etc.: If any person wilfully withholds or fails to deliver to an Indian insurance company as required by section 29 any property or any books, documents or other papers which may be in his possession or unlawfully retains possession of any property of an existing insurer which has been transferred to and vested in an Indian insurance company under section 5 or wilfully applies any such property to purposes other than those expressed in or authorised by this Act, he shall, on the complaint of the Indian insurance company, be punishable with imprisonment for a term which may extend to one year, or with fine which may extend to one thousand rupees, or with both.

    Practice Next