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Risk Management in Banking and Insurance · General Insurance

Functions and Role of the General Insurance Council

Updated 11 October 2026 · Fact-checked

The General Insurance Council is a representative body of insurers doing general, health and reinsurance business. Through its Executive Committee it advises insurers on standards and service, advises the Authority (IRDAI) on expenses, and reports prejudicial conduct. To answer questions, quote the Section 64L clauses (a) to (d) and link each to the regulator.

Understand Functions and Role of the General Insurance Council

Start with who the Council is. Section 64C says the General Insurance Council is a representative body of insurers who carry on general insurance, health insurance and re-insurance business in India. It sits alongside the Life Insurance Council, which represents life insurers.

The Council acts through its Executive Committee. Section 64E says the authorities of the Council are the Executive Committee. So when an exam asks about the Council's functions, the working body is the Executive Committee.

Section 64L lists the functions. The Committee aids and advises general insurers on standards of conduct, sound practice and efficient service to policyholders. It advises the Authority on controlling insurers' expenses, including commission. It brings to the Authority's notice any insurer acting in a manner prejudicial to policyholders' interests. It can also act in incidental or ancillary matters that the Council notifies in the Gazette of India with the Authority's approval.

Note the direction of the relationship. The Council does not regulate in the way the Authority does. It advises and informs the Authority. Section 64M shows this: the Committee must meet at least once before 31 March every year to advise the Authority on expense limits. The Authority fixes the limits and may warn an insurer after giving it a hearing.

The Council also needs money and rules to work. Under Section 64L(2) the Committee may collect fees laid down in the Council's bye-laws from general insurers. Section 64R gives the Council powers such as appointing staff, making bye-laws on meetings and elections, and requiring insurers to submit information, with copies sent to the Authority.

Key rules to remember

Functions of the Executive Committee (Section 64L(1))
(a) aid and advise insurers on standards, sound practice, service; (b) advise the Authority on expenses and commission; (c) report prejudicial insurers to the Authority; (d) incidental matters notified in the Gazette with the Authority's approval
Learn these four in order. Most questions test one clause.
Fees (Section 64L(2))
Fees as laid down in the Council's bye-laws, collected from general insurers
The Council may waive fees for a year by resolution; if the Authority approves, the Committee collects no fees for that year.
Expense advice (Section 64M(1))
Executive Committee meets at least once before 31 March each year to advise the Authority on expense limits
The Authority fixes the limits and may fix different limits for different groups of insurers.
Warnings (Section 64M(2) and (3))
Contravention of expense provisions → warning after hearing; two warnings disregarded → prescribed action
The Authority, not the Council, warns and acts.
Composition of the Executive Committee (Section 64F(2))
4 elected insurer representatives + 1 eminent person nominated by the Authority + 4 persons nominated by the Authority for agents, third party administrators, surveyors and loss assessors, and policyholders
One elected representative is Chairperson. The Authority may nominate to fill a vacancy if an election fails.

How to solve Functions and Role of the General Insurance Council questions

Use this method for any question on the Council's role, whether it is a short note, a case scenario or an MCQ.

  1. 1Identify the body: General Insurance Council (general, health, re-insurance) or Life Insurance Council.
  2. 2State that it acts through its Executive Committee (Section 64E).
  3. 3Find which Section 64L function the facts match: advising insurers, advising the Authority, reporting an insurer, or an incidental matter.
  4. 4Check who decides. The Council advises or reports. The Authority fixes limits, warns and takes action.
  5. 5Add supporting provisions if relevant: fees (64L(2)), powers and bye-laws (64R), expense advice (64M), composition (64F).
  6. 6Close with a one-line conclusion tying the answer to protecting policyholders and sound market conduct.

Quickest way: Four-clause match

When to use it: For MCQs and short case questions where you must pick the correct function or the correct body.

  1. Read the action in the question and ask: is it advising insurers, advising the Authority, reporting to the Authority, or something incidental?
  2. Map it to clause (a), (b), (c) or (d) of Section 64L(1).
  3. If the action is fixing a limit, warning or penalising, reject the Council and choose the Authority.
  4. Pick the option that matches and discard options that give the Council binding regulatory power.

Common mistakes in Functions and Role of the General Insurance Council

  • Saying the Council fixes expense limits for insurers.

    Students see the Council discussed with expenses and assume it decides them.

    Fix: Under Section 64M the Committee advises. The Authority fixes the limits and may fix different limits for different groups of insurers.

  • Confusing the Life Insurance Council with the General Insurance Council.

    The sections for both Councils sit together in Part II-A.

    Fix: Remember that the General Insurance Council covers general, health insurance and re-insurance. Check the business type in the question.

  • Writing that the Council itself is the authority under Section 64E.

    Students overlook the wording.

    Fix: The authority of the Council is its Executive Committee.

  • Giving the wrong composition of the Executive Committee, such as mixing it up with the life committee.

    Both committees have similar structures, with different nominated members.

    Fix: For general: four elected insurer representatives, one eminent person, and four nominees for agents, third party administrators, surveyors and loss assessors, and policyholders.

  • Ignoring the Authority's approval in clause (d) or in waiver of fees.

    Students memorise the functions but skip the conditions.

    Fix: Clause (d) matters need Authority approval and Gazette notification. A fee waiver resolution takes effect only after Authority approval.

Worked examples

Example 1

An insurer carrying on general insurance business is found to be selling policies in a manner harmful to policyholders. State the role of the General Insurance Council in this situation.

Show the solution
  1. Identify the body: the Executive Committee of the General Insurance Council acts under Section 64L.
  2. Match the function: clause (c) lets it bring to the Authority's notice any insurer acting in a manner prejudicial to policyholders of general insurance.
  3. Note its limit: the Council reports. It does not itself penalise the insurer.
  4. Under clause (a) it can also advise insurers on standards of conduct and sound practice, to prevent such behaviour.

Answer: The Executive Committee should bring the insurer's conduct to the notice of the Authority (IRDAI) under Section 64L(1)(c), and generally advise insurers on standards of conduct. Any action against the insurer is for the Authority.

Example 2

Explain the role of the Executive Committee of the General Insurance Council in controlling expenses of management, and say what happens if an insurer contravenes the expense provisions.

Show the solution
  1. Under Section 64L(1)(b), the Committee advises the Authority on controlling insurers' expenses, including commission and other expenses.
  2. Under Section 64M(1), it must meet at least once before 31 March every year to advise the Authority on the limits by which actual expenses of the preceding year may exceed the prescribed limits.
  3. The Authority fixes the limits, having due regard to conditions in general insurance business in the preceding year, and may fix different limits for different groups of insurers.
  4. If an insurer contravenes the provisions, the Authority may, after giving it an opportunity of being heard, warn it (Section 64M(2)).
  5. If two warnings are disregarded, the Authority may take the prescribed action (Section 64M(3)).

Answer: The Committee advises and the Authority decides. The Committee meets before 31 March each year to advise on expense limits. The Authority fixes limits, warns after a hearing, and after two disregarded warnings takes prescribed action.

Exam tips

  • Write the four Section 64L(1) clauses as a short list and tie each to a fact in the question.
  • Always state who advises (Council) and who decides (Authority). This is the most tested distinction.
  • In case scenarios, quote the exact condition, such as a hearing before a warning or Authority approval for clause (d).
  • Know the committee composition numbers: four elected, one eminent person, four nominees.
  • Do not quote the percentage or limits for expenses; the text you rely on leaves them to the Authority.

Practice questions from General Insurance

Functions and Role of the General Insurance Council in other exams

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

Functions and Role of the General Insurance Council: frequently asked questions

What is the main role of the General Insurance Council?

It is a representative body of insurers in general, health and re-insurance business. Through its Executive Committee it advises insurers on standards and service, advises the Authority on expenses, and reports insurers acting against policyholders' interests.

Does the General Insurance Council regulate insurers like IRDAI?

No. The Council advises and reports to the Authority. The Authority fixes expense limits, gives warnings after a hearing and takes prescribed action.

Can the Council collect fees from insurers?

Yes. Under Section 64L(2), the Executive Committee 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 it, no fees are collected for that year.

Who sits on the Executive Committee of the General Insurance Council?

Four representatives elected by Council members, one eminent person not connected with insurance business nominated by the Authority, and four nominees of the Authority representing agents, third party administrators, surveyors and loss assessors, and policyholders. One elected member is the Chairperson.