Business Management · Actuaries Act, 2006 and IAI governance

Council, Committees and Governance Structure of the IAI

Updated 11 October 2026 · Fact-checked

The Institute of Actuaries of India is a statutory body set up under the Actuaries Act, 2006. Its Council is the main governing body. It has elected members and Central Government nominees, and it elects a president. The Council delegates work to committees. To answer exam questions, separate who decides from who does the work.

Understand Council, Committees and Governance Structure

The Institute of Actuaries of India (IAI) is a body corporate created by the Actuaries Act, 2006. Because it is a statute-based body, its structure comes from the Act and from rules and regulations made under it. The Act sets the framework. The Institute runs itself inside that framework.

The Council is the governing body. It manages the affairs of the Institute and exercises the powers the Act gives it. Its members are mostly elected by the membership from among themselves. The Central Government also nominates some members. This mix gives the profession self-governance with a public-interest check. The Council elects a president and a vice-president from among its members. The president chairs the Council and leads the Institute.

A Council cannot do every task itself. So it sets up committees. Some committees are required by the Act, such as those dealing with discipline. Others are created by the Council for practical needs, such as education and examinations, professional conduct, or standards. A committee works within the powers and terms of reference the Council gives it. The Council stays accountable for the Institute as a whole.

The core difference is simple. The Council is the top decision-making body with overall responsibility. Committees are smaller groups that carry out specific functions and report back. Discipline is handled by separate bodies so that a complaint is examined fairly and is not decided by the people who run the Institute day to day.

Exact numbers of members, term lengths and quorum rules are set out in the Act and the regulations. Learn them from the IAI study material and the Act itself. Do not rely on memory from other professional bodies, because their structures differ.

Key rules to remember

Governance chain: Actuaries Act, 2006 → Council → President and Vice-President → Committees; The Act gives authority. The Council exercises it. Committees carry out delegated or statutory tasks.
Council membership rule: Council = elected members + Central Government nominees; Remember the two sources. Check the exact numbers in the Act and IAI study material before the exam.
Office-bearers rule: President and Vice-President are chosen by the Council from among its own members; They are not appointed from outside the Council.
Council versus committee test: Council = overall governance and policy; Committee = specific function, delegated or statutory; Use this test for any 'difference between' question.
Discipline separation: Complaint handling sits with Disciplinary Committee and Board of Discipline, not with routine management; The aim is fair, independent handling of misconduct complaints.

How to solve Council, Committees and Governance Structure questions

Use this method for any question on the Council, its office-bearers or its committees.

1Read the command word. 'Describe' needs structure and detail. 'Explain' needs reasons. 'Distinguish' needs a comparison on the same points.
2Name the source of authority first: the Actuaries Act, 2006 and the rules and regulations under it.
3State the Council's composition: elected members and Central Government nominees. Add exact numbers or terms only if you are sure of them.
4State the role of the president and vice-president, and how they are chosen.
5Describe the committees. Split them into statutory ones, such as discipline bodies, and those set up by the Council for functions like education or standards.
6Link each body to its purpose: policy, delegated work, or independent discipline.
7Close with the public-interest point: nominees, separation of discipline and accountability to the Council.
8Check that you have not mixed up Council and committees, and that every claim is something you know.

Quickest way: Three-layer recall: Act, Council, Committees

When to use it: Use it for multiple-choice questions and for planning a short written answer in a few minutes.

Write A, C, K on your paper for Act, Council and Committees.
Under A, note the Actuaries Act, 2006 as the source of power.
Under C, note elected members, Government nominees, president and vice-president chosen by the Council.
Under K, note statutory discipline bodies and Council-created functional committees.
Pick the option that fits the layer asked about. If a statement gives a committee the power of the whole Council, reject it.

Common mistakes in Council, Committees and Governance Structure

Saying all Council members are elected.
Students assume a professional body is wholly member-run.
Fix: Remember there are two sources: elected members and Central Government nominees.
Saying the president is appointed by the Central Government.
Students confuse nominees with office-bearers.
Fix: Remember the Council chooses its president and vice-president from among its members.
Treating committees as having the same powers as the Council.
Both bodies make decisions, so the difference blurs.
Fix: A committee works only within its terms of reference or statutory role. The Council keeps overall responsibility.
Quoting exact numbers of members or years of term from memory.
Students borrow figures from other professional bodies.
Fix: Use figures only if checked against the Act or IAI study material. Otherwise describe the structure in words.
Mixing up education or examination committees with disciplinary bodies.
Both are called committees.
Fix: Link each to its purpose. Education bodies run the qualification. Disciplinary bodies deal with misconduct complaints.
Writing a list of names with no explanation.
Students memorise labels but not reasons.
Fix: For each body, add one line on what it does and why it exists.

Worked examples

Example 1

Distinguish between the Council of the IAI and its committees. (Written question)

Show the solution

Source: both exist under the Actuaries Act, 2006 and the regulations made under it.
Role of the Council: it is the governing body and has overall responsibility for managing the Institute's affairs.
Role of committees: each handles a specific function, such as education or discipline, within its terms of reference or statutory role.
Composition: the Council has elected members and Central Government nominees. Committee membership is set by the Council or the regulations, often drawing on Council members and other members of the profession.
Accountability: committees report to the Council, except that disciplinary bodies must decide cases independently of routine management.
Conclusion: the Council sets direction and holds final responsibility. Committees do focused work.

Answer: The Council is the overall governing body with elected and Government-nominated members. Committees are narrower bodies that carry out specific delegated or statutory functions and report to the Council. Discipline is kept independent of day-to-day management.

Example 2

State whether each statement is true or false and give a reason. (a) The president of the IAI is nominated by the Central Government. (b) A committee set up by the Council can exercise any power of the Council.

Show the solution

(a) The president is chosen by the Council from among its members. The Central Government nominates some Council members but does not choose the president. So the statement is false.
(b) A committee acts only within the powers and terms of reference given to it, or its role under the Act. It does not hold the whole Council's authority. So the statement is false.
Check both reasons use the Council versus committee test.

Answer: (a) False. The Council chooses its president from among its members. (b) False. A committee has only the powers delegated to it or given by the Act.

Exam tips

Start every answer with the Actuaries Act, 2006 as the source of the structure. It earns marks for framing.
Use the words 'elected members' and 'Central Government nominees' when describing the Council. Examiners look for both.
In 'distinguish' questions, compare on the same points: role, composition, powers and accountability.
Do not give exact numbers or term lengths unless you have checked them against the Act or IAI study material.
In multiple-choice questions, reject options that give a committee full Council powers or have the Government choosing the president.

Practice questions from Actuaries Act, 2006 and IAI governance

Council, Committees and Governance Structure in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

CS ProfessionalCouncil of the Institute and Its Committees

Council, Committees and Governance Structure: frequently asked questions

What is the IAI Council?

It is the governing body of the Institute of Actuaries of India under the Actuaries Act, 2006. It manages the Institute's affairs and exercises the powers the Act gives it. It has elected members and Central Government nominees.

What is the difference between the Council and committees at the IAI?

The Council is the top governing body with overall responsibility. Committees handle specific functions such as education or discipline. They work within the powers given to them and report to the Council.

Who chooses the president of the IAI?

The Council chooses the president and vice-president from among its own members. They are not appointed from outside the Council. Check the Act and the regulations for the exact election rules.

Do I need to remember exact numbers of Council members for the exam?

Learn the exact numbers and term only from the Act and the IAI study material, and use them only if you are sure. If you are unsure, describe the structure clearly in words. Examiners mainly reward correct roles and reasoning.