Dear Professional friends,
I want to know about provision of IRDA Act (Insurance regulatory development Act) relating collection and payment of insurance premium.
A company in my example, as part of its business modality, collects insurance premium from its customers at the tiime of selling its service. It is supposed to deposit the same with the insurance company. Now, I want to know, what are the consequences in following scenarios :
a) Is there any due date for paying this premium to the insurance company ? If yes, what if company don't comply with this due date norm ?
b) What if company doesn't pay or pays less than the insurance amount collected towards Insurance Premium.
Your early responses would be very much helpful to understand provisions of IRDA better.
Regards.
CAclubindia
