Licentiate Examination - IC 14 - Regulation of Insurance Business Exam - Important Points
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Implementation of KYC should not mean denial of insurance services to the public
AML / CFT guidelines place the responsibility of a robust program on the insurance companies for guarding against insurance products being used to launder unlawfully derived funds or to finance terrorist acts.
Records of transactions reported to FIU will have to be retained for 5 years beginning from the date of occurrence of transaction
In the case of a policy of general insurance, where the remittance made by the proposer or the policyholder is not realized by the insurer, the policy shall be treated as void ab inito i.e. as if no policy existed.
Under the Motor Vehicles Act, insurers do not have ?non-receipt of premium or non-realization of cheque? as a defence against payment of compensation to the third party.
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