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Section 14 of the Insurance Act 1938 requires every insurer to maintain a record of:
A{'text': 'Policies and claims (and may use electronic mode)', 'letter': 'A'}
B{'text': 'Only premium-paying policies', 'letter': 'B'}
C{'text': 'Only claims rejected', 'letter': 'C'}
D{'text': 'Only group insurance policies', 'letter': 'D'}
Answer & Solution
Correct answer: A. {'text': 'Policies and claims (and may use electronic mode)', 'letter': 'A'}
1. Section 14 prescribes record-keeping obligations.
2. Records cover the full life-cycle of business.
3. Insurers must maintain a record of policies and a record of claims, in any form including electronic mode.
_Source: Insurance Act 1938 (incorporating amendments till 2021), noc.irdai.gov.in — "Every insurer, in respect of all business transacted by him, shall maintain— (a) a record of policies ... (b) a record of claims ... (c) a record of policies and claims ... may be maintained in any such form, including electronic mode"_