Risk Management in Banking and Insurance · General Insurance

Section 64L: Functions of the General Insurance Council's Executive Committee

Updated 11 October 2026 · Fact-checked

Section 64L lists what the Executive Committee of the General Insurance Council does. It advises general insurers on standards of conduct, sound practice and efficient service to policyholders. It advises the Authority on controlling commission and other expenses. It reports insurers acting against policyholders' interests, and may collect fees under the bye-laws.

Understand Executive Committee of General Insurance Council (64L)

The General Insurance Council is the representative body of insurers carrying on general insurance, health insurance and re-insurance business in India (Section 64C). Its authority is the Executive Committee (Section 64E). So the Council is the wider body of member insurers, and the Executive Committee is the working body that acts for it.

Section 64F says how the Executive Committee is made up. It has four representatives of Council members elected in their individual capacity, one eminent person not connected with insurance business nominated by the Authority, and four persons nominated by the Authority to represent agents, third party administrators, surveyors and loss assessors, and policyholders. One of the four elected representatives is elected Chairperson.

Section 64L then gives its functions. There are four. First, aid and advise general insurers on standards of conduct and sound practice, and on rendering efficient service to holders of general insurance policies. Second, advise the Authority on controlling the expenses of such insurers in India, in the matter of commission and other expenses. Third, bring to the notice of the Authority any insurer acting in a manner prejudicial to the interests of general insurance policyholders. Fourth, act in incidental or ancillary matters, but only those notified by the General Insurance Council in the Gazette of India with the Authority's approval.

Note the direction of each function. The Committee advises and informs. It does not itself punish an insurer. Action on expenses and warnings sits with the Authority (Section 64M).

Section 64L(2) lets the Committee collect fees laid down in the bye-laws from general insurers, so it can discharge its functions. The proviso lets the Council, by resolution, waive the fees for any year. If the Authority has approved that resolution, the Committee must not collect fees for that year.

Key rules to remember

Function (a): conduct and service: Aid and advise general insurers on standards of conduct, sound practice and efficient service to policyholders; Directed at insurers carrying on general insurance business.
Function (b): expenses: Advise the Authority on controlling insurers' commission and other expenses; Advice goes to the Authority, not to insurers.
Function (c): prejudicial conduct: Bring to the Authority's notice any insurer acting prejudicially to general policyholders; The Committee reports. It does not penalise.
Function (d): incidental matters: Act in matters incidental or ancillary to (a) to (c), as notified by the Council in the Gazette with Authority approval; Both notification and approval are needed.
Fees, Section 64L(2) and proviso: Collect fees as per Council bye-laws; Council may waive for a year by resolution, and if the Authority approves, no fees are collected for that year; Waiver needs both the Council's resolution and the Authority's approval.

How to solve Executive Committee of General Insurance Council (64L) questions

Use this method for any question on the Committee's functions, whether theory, scenario or MCQ.

1Identify who is acting: the Council, the Executive Committee, the Authority or the insurer.
2Match the activity to one of the four functions (a) to (d), or to the fee power in sub-section (2).
3Check the direction: advising insurers, advising the Authority, or reporting to the Authority.
4Check the business class. Section 64L covers insurers carrying on general insurance business, not life insurance.
5For incidental matters, check for Gazette notification by the Council and the Authority's approval.
6For fees, check the bye-laws basis and whether a waiver resolution exists and has been approved.
7State your conclusion with the section reference and a one-line reason.

Quickest way: Four-function recall: Conduct, Cost, Complaint, Ancillary

When to use it: Use for MCQs and short scenario questions where you must pick the correct function or spot a wrong statement.

Conduct: standards and service, advice to insurers.
Cost: commission and expenses, advice to the Authority.
Complaint: prejudicial insurer, reported to the Authority.
Ancillary: incidental matters, Gazette plus Authority approval.
Then check fees: bye-laws, and waiver needs Authority approval.

Common mistakes in Executive Committee of General Insurance Council (64L)

Saying the Executive Committee can penalise an insurer that acts against policyholders.
Students assume a regulatory body can punish.
Fix: Under Section 64L(1)(c) it only brings the case to the Authority's notice. Warnings and further action under Section 64M come from the Authority.
Confusing the General Insurance Council with its Executive Committee.
Both names appear together and look interchangeable.
Fix: The Council is the representative body of insurers (Section 64C). The Executive Committee is its authority (Section 64E) and performs the Section 64L functions.
Applying Section 64L to life insurers.
Councils for life and general insurance are covered side by side.
Fix: Section 64L refers to insurers carrying on general insurance business. The Life Insurance Council has its own Executive Committee under Section 64F(1).
Saying the Committee advises insurers on controlling expenses.
Functions (a) and (b) are mixed up.
Fix: Function (b) is advice to the Authority on commission and other expenses. Function (a) is aid and advice to insurers on conduct and service.
Thinking a fee waiver needs only the Council's resolution.
The proviso is read quickly.
Fix: The Council passes a resolution, and the Committee stops collecting fees for that year only where the Authority has approved it.
Treating any extra activity as within function (d).
The word 'incidental' feels wide.
Fix: Only matters incidental or ancillary to clauses (a) to (c), and notified by the Council in the Gazette with Authority approval.

Worked examples

Example 1

State the functions of the Executive Committee of the General Insurance Council under Section 64L of the Insurance Act, 1938.

Show the solution

Say the Executive Committee is the authority of the General Insurance Council, the representative body of general insurers (Sections 64C and 64E).
Function (a): it aids and advises general insurers on standards of conduct and sound practice, and on efficient service to policyholders.
Function (b): it advises the Authority on controlling these insurers' commission and other expenses.
Function (c): it brings to the Authority's notice any insurer acting prejudicially to the interests of general policyholders.
Function (d): it acts in incidental or ancillary matters notified by the Council in the Gazette with Authority approval.
Add that under sub-section (2) it may collect fees as laid down in the bye-laws, subject to waiver by Council resolution approved by the Authority.

Answer: Four functions: advise insurers on conduct and service, advise the Authority on commission and expenses, report prejudicial insurers to the Authority, and act in notified incidental matters. It may also collect bye-law fees.

Example 2

A general insurer pays commission that other members consider excessive, and its claim handling harms policyholders. Advise what the Executive Committee of the General Insurance Council can and cannot do under Section 64L.

Show the solution

Excessive commission falls under function (b): the Committee can advise the Authority on controlling commission and other expenses.
Harm to policyholders falls under function (c): the Committee can bring the insurer's conduct to the Authority's notice.
Under function (a) it can also aid and advise the insurer on sound practice and efficient service.
The Committee cannot itself impose a penalty under Section 64L. The power to warn and act on breach of expense limits lies with the Authority (Section 64M).

Answer: The Committee can advise the insurer, advise the Authority on commission, and report the insurer to the Authority. It cannot punish the insurer. Any action is for the Authority.

Exam tips

Write the four functions as separate points, each with its beneficiary: insurers, or the Authority.
In an MCQ, a statement saying the Committee penalises insurers is almost certainly wrong.
Quote the section: 64L for functions, 64F for composition, 64E for the Committee being the Council's authority.
In case scenarios, label each fact with the function it triggers before you conclude.
Remember the fee waiver needs the Authority's approval before collection stops.

Practice questions from General Insurance

Executive Committee of General Insurance Council (64L) in other exams

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

CS ProfessionalSection 64L: Functions of Executive Committee

Executive Committee of General Insurance Council (64L): frequently asked questions

What does Section 64L of the Insurance Act, 1938 deal with?

It sets out the functions of the Executive Committee of the General Insurance Council. These are advising insurers on conduct and service, advising the Authority on expenses, reporting prejudicial insurers, and notified incidental matters. Sub-section (2) deals with fees.

What is the difference between the General Insurance Council and its Executive Committee?

The Council is the representative body of insurers carrying on general, health and re-insurance business (Section 64C). The Executive Committee is the Council's authority under Section 64E. It performs the functions listed in Section 64L.

Can the Executive Committee take action against an insurer?

Under Section 64L it advises and reports. It brings an insurer's prejudicial conduct to the Authority's notice. Warnings and further action on expense limits are by the Authority under Section 64M.

Can the Executive Committee collect fees from insurers?

Yes, under Section 64L(2) it may collect fees laid down in the Council's bye-laws from general insurers. The Council may waive fees for a year by resolution, and if the Authority approves, no fees are collected for that year.