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

General Insurance Council under the Insurance Act, 1938

Updated 11 October 2026 · Fact-checked

The General Insurance Council is the representative body of insurers carrying on general, health and re-insurance business in India, deemed constituted under Section 64C of the Insurance Act, 1938. Its authority is the Executive Committee, which advises insurers, advises the Authority on expenses, and reports prejudicial conduct.

Understand General Insurance Council under the Insurance Act, 1938

The Insurance Act, 1938 sets up two industry bodies: the Life Insurance Council and the General Insurance Council. Think of them as self-regulatory forums of insurers that work alongside the regulator, the Insurance Regulatory and Development Authority (called the Authority in the Act).

Under Section 64C, the existing General Insurance Council is a representative body of insurers who carry on general, health insurance business and re-insurance in India. It is deemed to be constituted as the Council under the Act. The Life Insurance Council is the matching body for life insurers.

The Council does not act through a large body. Under Section 64E, the authority of each Council is its Executive Committee. So when a question asks who actually acts, the answer is the Executive Committee.

The Executive Committee has a fixed mix of members, a three-year term, and defined functions. Its functions are about standards of conduct, service to policyholders, advising on expenses, and flagging insurers who harm policyholders. It is an advisory and reporting body. It advises the Authority; it does not replace it.

The Council has housekeeping powers too (Section 64R): it appoints staff, decides how fees are collected, keeps the list of member insurers and makes bye-laws on elections, meetings, quorum, information from insurers and fees.

Key rules to remember

Section 64C – Council: General Insurance Council = representative body of insurers carrying on general, health insurance business and re-insurance in India; Deemed constituted under the Act from its commencement.
Section 64E – Authority of the Council: Authority of the Council = Executive Committee; The Executive Committee is the working body.
Section 64F(2) – Composition: 4 elected insurer representatives + 1 eminent person not connected with insurance business (nominated by the Authority) + 4 nominees of the Authority representing insurance agents, third party administrators, surveyors and loss assessors, and policyholders = 9 members; The Chairperson is one of the four elected insurer representatives. Elected in individual capacity, in the manner laid down in the bye-laws.
Section 64F(3) – Failure to elect: If a body fails to elect a member, the Authority may nominate a person to fill the vacancy; The nominee is deemed to be duly elected.
Section 64G – Resignation and vacancies: Resignation by written notice to the chairman; casual vacancy filled as per the Council's bye-laws; nominee holds office until the Committee is dissolved; Under 64G(3), no act of the Committee can be questioned merely because of a vacancy or a defect in its constitution.
Section 64H – Duration: Term = 3 years from the date of its first meeting, then it stands dissolved; Outgoing members continue to discharge prescribed duties until a new Committee is constituted.
Section 64L(1) – Functions: (a) aid and advise insurers on standards of conduct, sound practice and efficient service to policyholders; (b) advise the Authority on controlling expenses, commission and other expenses; (c) bring to the Authority's notice any insurer acting prejudicially to policyholders; (d) incidental or ancillary matters notified by the Council with the Authority's approval; Memorise the four clauses in order.
Section 64L(2) – Fees: Fees as laid down in bye-laws from general insurers; Council may waive fees for a year by resolution, and if the Authority approves, no fees are collected for that year; Waiver needs the Authority's approval to take effect.
Section 64M – Expenses: Executive Committee must meet at least once before 31 March every year to advise the Authority on limits under the proviso to Section 40C(1); Authority may warn an insurer after a hearing; after two disregarded warnings it may take prescribed action.
Section 64N – Joint meetings: Authority specifies circumstances, manner and conditions for joint meetings of the two Executive Committees; A sub-committee drawn from both Committees may be appointed to decide a matter.

How to solve General Insurance Council under the Insurance Act, 1938 questions

Most questions ask you to state the constitution or functions, or apply them to a short fact pattern. Use the same frame each time.

1Identify the body: Council or Executive Committee. The Council is the representative body; the Executive Committee is its authority (Sections 64C and 64E).
2Name the section that governs the point: 64F composition, 64G vacancies, 64H term, 64L functions, 64M expenses, 64N joint meetings, 64R powers.
3State the rule in plain words, using the exact conditions, such as 'three years from the first meeting' or 'before 31 March'.
4Apply the rule to the facts: count members, check who nominates whom, check whether the body only advises or can decide.
5Check the role of the Authority. Many points need its nomination, approval or action.
6Conclude in one sentence and add a practical compliance point, such as keeping bye-law fees and meeting records in order.

Quickest way: Four-line recall for the General Insurance Council

When to use it: When you have five minutes for a short note or a 'state the functions' question.

Write: Council = representative body of general insurers (64C); acts through Executive Committee (64E).
Write composition as 4 + 1 + 4 with Chairperson from the elected four (64F).
Write term and vacancies: 3 years, outgoing members continue, vacancy defect does not invalidate acts (64G, 64H).
Write the four functions of 64L(1)(a) to (d), then add fees (64L(2)) and the 64M meeting before 31 March.

Common mistakes in General Insurance Council under the Insurance Act, 1938

Saying the Council itself exercises the functions in Section 64L.
The names sound alike and students skip Section 64E.
Fix: Section 64L gives functions to the Executive Committee. Write that the Executive Committee is the Council's authority.
Stating the Executive Committee has nine members but listing them wrongly, for example making the eminent person elected.
Mixing the Life Insurance Council clause with the General one.
Fix: For general: four elected insurers, one eminent person nominated by the Authority, four nominated persons (agents, third party administrators, surveyors and loss assessors, policyholders). The life committee has a different list.
Saying the Chairperson is nominated by the Authority.
Assuming the regulator picks the head.
Fix: The proviso to 64F(2) says the Chairperson is one of the four elected insurer representatives.
Writing that the Committee's acts are invalid if a seat is vacant.
Applying a general idea of quorum and constitution.
Fix: Section 64G(3) says no act can be called in question merely on the ground of a vacancy or a defect in constitution.
Treating the Committee as a regulator that fines insurers.
Confusing advisory functions with enforcement.
Fix: It aids, advises and brings matters to the Authority's notice. Warnings and action under Section 64M are by the Authority.
Confusing the term: saying three years from appointment or that members leave at once on dissolution.
Skipping the exact wording of Section 64H.
Fix: Three years from the first meeting; outgoing members continue to discharge prescribed duties until a new Committee is constituted.

Worked examples

Example 1

Explain the constitution of the Executive Committee of the General Insurance Council and how its Chairperson is chosen. Can a vacancy in the Committee invalidate its decisions?

Show the solution

Provision: Section 64F(2) of the Insurance Act, 1938 lays down the composition.
Members: four representatives of members of the Council, elected in their individual capacity in the manner laid down in the bye-laws; one eminent person not connected with insurance business, nominated by the Authority; four persons nominated by the Authority to represent insurance agents, third party administrators, surveyors and loss assessors, and policyholders.
Total: 4 + 1 + 4 = 9 members.
Chairperson: the proviso requires one of the four elected insurer representatives to be elected as Chairperson.
Failure to elect: under 64F(3), the Authority may nominate a person to fill the vacancy, and that person is deemed duly elected.
Vacancy and validity: Section 64G(3) says no act of the Committee can be questioned merely because of a vacancy or defect in its constitution.
Conclusion: the Committee has nine members, the Chairperson comes from the elected insurers, and decisions stand despite a vacancy.

Answer: The Executive Committee has nine members: four elected insurer representatives, one eminent outsider nominated by the Authority, and four Authority nominees for agents, third party administrators, surveyors and loss assessors, and policyholders. The Chairperson is elected from the four insurer representatives. A vacancy or defect in constitution does not by itself invalidate its acts (Section 64G(3)).

Example 2

The Executive Committee of the General Insurance Council receives complaints that a general insurer is repeatedly delaying claim settlement and paying excessive commission. What can the Committee do under the Act?

Show the solution

Provision: Section 64L(1) lists the Committee's functions.
Claim delays: under clause (a), it can aid and advise insurers on standards of conduct, sound practice and efficient service to policyholders.
Excessive commission: under clause (b), it can advise the Authority on controlling expenses of general insurers, including commission and other expenses.
Prejudicial conduct: under clause (c), it can bring to the Authority's notice any insurer acting in a way prejudicial to policyholders' interests.
Limit of power: the Committee advises and reports. Warnings and further action on breach of Section 40C expense limits rest with the Authority under Section 64M, after hearing the insurer.
Practical point: the Committee can also collect fees under its bye-laws from member insurers to fund its work (Section 64L(2)).
Conclusion: it should advise the insurer, advise the Authority on expenses, and report the insurer's prejudicial conduct to the Authority.

Answer: The Committee can advise the insurer on sound practice and efficient service (64L(1)(a)), advise the Authority on controlling commission and expenses (64L(1)(b)) and bring the insurer's prejudicial conduct to the Authority's notice (64L(1)(c)). It cannot itself penalise the insurer; any warning or action is for the Authority under Section 64M.

Exam tips

Answer in the order provision, facts, conclusion. Name the section before the rule.
Learn the composition as 4 + 1 + 4 and write the three groups clearly. Examiners often test the difference from the Life Insurance Council.
For functions, write all four clauses of 64L(1) and add the fee provision in 64L(2) for a full answer.
Mention 64M: the Committee must meet before 31 March every year to advise on Section 40C limits.
In case questions, state who has the final power. Usually it is the Authority, not the Committee.

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

General Insurance Council under the Insurance Act, 1938 in other exams

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

CMA FinalFunctions and Role of the General Insurance Council

General Insurance Council under the Insurance Act, 1938: frequently asked questions

What is the General Insurance Council?

It is the representative body of insurers carrying on general, health insurance business and re-insurance in India. Section 64C deems the existing Council to be constituted under the Insurance Act, 1938. It acts through its Executive Committee.

How many members does the Executive Committee of the General Insurance Council have?

Nine. Four are elected insurer representatives, one is an eminent person nominated by the Authority, and four are Authority nominees for agents, third party administrators, surveyors and loss assessors, and policyholders. The Chairperson is one of the four elected members.

What is the term of the Executive Committee?

Three years from the date of its first meeting, after which it stands dissolved and a new Committee is constituted. Outgoing members continue to discharge prescribed duties until the new Committee is in place (Section 64H).

What are the main functions of the Executive Committee under Section 64L?

It aids and advises insurers on conduct and service standards, advises the Authority on controlling expenses, brings prejudicial conduct of insurers to the Authority's notice, and acts in incidental matters notified with the Authority's approval. It may also collect fees under the bye-laws.