Banking and Insurance - Laws and Practice · Functions in Insurance and Compliance related thereto (Part III)

Functions of the General Insurance Council Executive Committee (Section 64L)

Updated 11 October 2026 · Fact-checked

Section 64L of the Insurance Act, 1938 lists what the Executive Committee of the General Insurance Council does. It advises general insurers on conduct, sound practice and efficient service; advises the Authority on controlling commission and expenses; reports prejudicial insurers to the Authority; and acts in notified incidental matters. It may also collect fees.

Understand Functions of the General Insurance Council Executive Committee

The General Insurance Council is the body of general insurers under the Act. Its working authority is the Executive Committee (section 64E). So when a question asks what the Council does in practice, you answer through the Executive Committee's functions in section 64L.

Think of the Committee as a bridge between general insurers and the regulator, the Authority (IRDAI). It does not regulate insurers itself. It guides insurers, advises the Authority and flags problems. The power to act against an insurer stays with the Authority.

Section 64L(1) gives four functions:

(a) Standards and service: aid and advise insurers carrying on general insurance business on standards of conduct and sound practice, and on rendering efficient service to holders of general insurance policies.
(b) Expenses: render advice to the Authority on controlling the expenses of such insurers carrying on business in India, in the matter of commission and other expenses.
(c) Prejudicial conduct: bring to the notice of the Authority the case of any such insurer acting in a matter prejudicial to the interests of holders of general insurance policies.
(d) Incidental matters: act in any matter incidental or ancillary to clauses (a) to (c), as notified by the General Insurance Council in the Gazette of India with the approval of the Authority.

Section 64L(2) deals with money. To discharge its functions effectively, the Committee may collect fees laid down in the Council's bye-laws from general insurers. The proviso lets the Council, by resolution, waive the fees for any year. If the Authority has approved that resolution, the Committee shall not collect fees for that year.

The words "general insurance" matter. The functions cover insurers carrying on general insurance business and holders of general insurance policies. Life insurers fall under the Life Insurance Council's own Committee.

Key rules to remember

Section 64L(1)(a): Aid and advise insurers on standards of conduct, sound practice and efficient service to policyholders; Advisory role towards insurers carrying on general insurance business.
Section 64L(1)(b): Advise the Authority on controlling expenses, including commission and other expenses; Advice goes to the Authority, not to insurers.
Section 64L(1)(c): Bring to the Authority's notice any insurer acting prejudicially to policyholders' interests; Reporting role. The Committee does not punish.
Section 64L(1)(d): Act in incidental or ancillary matters notified by the Council in the Gazette with the Authority's approval; Both a Gazette notification and the Authority's approval are needed.
Section 64L(2) and proviso: Collect fees as per bye-laws; Council may waive fees for a year by resolution, and if the Authority approves it, no fees are collected that year; Waiver takes effect on collection only when the Authority has approved the resolution.
Related: Section 64M(1): Executive Committee must meet at least once before 31 March every year to advise the Authority on limits of excess expenses of management under the proviso to section 40C(1); Links the expense-control function in 64L(1)(b) to a specific duty.

How to solve Functions of the General Insurance Council Executive Committee questions

Use this method for any question on the Committee's functions, whether a theory question or a case-based one.

1Identify the body: the Executive Committee of the General Insurance Council, and confirm the facts concern general insurance business.
2Read the facts and match each act or issue to a limb of section 64L(1): advice on conduct and service, expense advice, reporting prejudicial conduct, or incidental matters.
3State the provision in plain words, using the exact conditions (for example, advice on expenses goes to the Authority).
4Apply it: say who advises whom, who reports to whom, and who holds the power to act.
5If money is involved, apply section 64L(2): fees as per bye-laws and the waiver proviso.
6Where the facts mention the annual meeting or limits on expenses of management, add section 64M and section 40C.
7Conclude clearly: whether the action is within the Committee's function, and what the Committee or the Authority should do next.

Quickest way: A-B-C-D recall for section 64L(1)

When to use it: Use this when you have a few minutes and need a short, correct answer on the functions.

A = Advise insurers on conduct, sound practice and efficient service.
B = Brief the Authority on controlling commission and other expenses.
C = Complain to (bring to the notice of) the Authority about insurers acting prejudicially to policyholders.
D = Do incidental matters notified in the Gazette with the Authority's approval.
Add one line on fees under section 64L(2), including the waiver proviso.

Common mistakes in Functions of the General Insurance Council Executive Committee

Saying the Committee can penalise or take action against an insurer that acts prejudicially.
Students assume a Council body has regulatory teeth.
Fix: Write that under 64L(1)(c) it only brings the case to the notice of the Authority. Action rests with the Authority.
Saying expense-control advice goes to insurers.
Clause (a) advises insurers, so students merge the clauses.
Fix: Under clause (b) the advice on commission and other expenses is rendered to the Authority.
Applying the section to life insurers.
Both Councils have similar structures.
Fix: Section 64L covers the General Insurance Council's Committee and general insurance business only.
Saying incidental functions can be assumed by the Committee on its own.
The word 'incidental' sounds open-ended.
Fix: Clause (d) needs notification by the General Insurance Council in the Gazette of India with the Authority's approval.
Stating that fees are always collected, or that the Council alone can waive them.
The proviso is skipped.
Fix: Fees are collected as per the bye-laws. A waiver resolution of the Council, once approved by the Authority, stops collection for that year.
Citing 'Controller' or 'Central Government' as the supervising authority.
Old text and older notes use those words.
Fix: The current text says 'Authority'. Those words were substituted from 19-4-2000.

Worked examples

Example 1

List and explain the functions of the Executive Committee of the General Insurance Council under section 64L of the Insurance Act, 1938.

Show the solution

Introduce: the Executive Committee is the authority of the General Insurance Council (section 64E), and section 64L sets out its functions.
Function (a): it aids and advises general insurers on standards of conduct and sound practice, and on rendering efficient service to holders of general insurance policies.
Function (b): it advises the Authority on controlling expenses of such insurers carrying on business in India, in the matter of commission and other expenses.
Function (c): it brings to the notice of the Authority any insurer acting in a manner prejudicial to the interests of holders of general insurance policies.
Function (d): it acts in matters incidental or ancillary to (a) to (c), as notified by the Council in the Gazette of India with the Authority's approval.
Fees: under section 64L(2) it may collect fees laid down in the bye-laws. The Council may waive fees for a year by resolution, and if the Authority approves, no fees are collected for that year.

Answer: The Committee advises insurers on conduct and service, advises the Authority on commission and expenses, reports prejudicial insurers to the Authority, acts in notified incidental matters, and may collect bye-law fees subject to the waiver proviso.

Example 2

A general insurer pays commission at rates that policyholders' groups say are excessive, and it repeatedly delays settling claims, harming policyholders. The Executive Committee of the General Insurance Council learns of this. Advise on what the Committee may do under section 64L.

Show the solution

Identify the body: the Executive Committee of the General Insurance Council, and the insurer carries on general insurance business, so section 64L applies.
Delay in settling claims is a service issue. Under 64L(1)(a) the Committee may aid and advise the insurer on sound practice and efficient service to policyholders.
Excessive commission is an expense issue. Under 64L(1)(b) the Committee may render advice to the Authority on controlling commission and other expenses of such insurers.
If the conduct is prejudicial to policyholders' interests, 64L(1)(c) lets the Committee bring the case to the notice of the Authority.
The Committee cannot itself penalise the insurer. Any action lies with the Authority.
Conclude with the compliance point: the Committee should record its advice and the report to the Authority in writing.

Answer: The Committee may advise the insurer on sound practice and efficient claim service, advise the Authority on commission and expenses, and report the prejudicial conduct to the Authority. It cannot penalise the insurer itself.

Exam tips

Write section 64L(1)(a) to (d) as four separate numbered points. Examiners look for each limb.
Always say who the advice or report goes to: insurers for (a), the Authority for (b) and (c).
In case-based questions, follow provision, analysis and conclusion. Match each fact to one clause.
Use the word 'Authority', not 'Controller', and mention the fees clause and its proviso for a full answer.
Link to section 64M and section 40C only when the facts mention expenses of management limits.

Practice questions from Functions in Insurance and Compliance related thereto (Part III)

Functions of the General Insurance Council Executive Committee in other exams

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

Functions of the General Insurance Council Executive Committee: frequently asked questions

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

It lists 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 acting in notified incidental matters. It also allows collection of fees.

Can the Executive Committee take action against a general insurer?

No. Under section 64L(1)(c) it can only bring the case of a prejudicial insurer to the notice of the Authority. Action is for the Authority.

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

Under section 64F(2), it has four elected representatives of the Council's members, an eminent person unconnected with insurance business nominated by the Authority, and four persons nominated by the Authority to represent insurance agents, third party administrators, surveyors and loss assessors, and policyholders. One elected representative is the Chairperson.

How long does the Executive Committee last?

Under section 64H, its duration is three years from its first meeting, after which it stands dissolved and a new Committee is constituted. Outgoing members continue in office until the new Committee is constituted.