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

Section 64L: Functions of the Executive Committee

Updated 11 October 2026 · Fact-checked

Section 64L of the Insurance Act, 1938 lists the functions of the Executive Committee of the General Insurance Council. It advises general insurers on conduct and service standards, advises the Authority on commission and expenses, reports prejudicial insurers to the Authority, acts in notified incidental matters, and may collect fees under bye-laws.

Understand Section 64L: Functions of Executive Committee

The Insurance Act, 1938 sets up two representative bodies: the Life Insurance Council and the General Insurance Council. Section 64C deems the existing councils to be constituted under the Act. The General Insurance Council represents insurers who carry on general, health insurance business and re-insurance in India.

A council works through its authority. Under section 64E, the authority of each council is its Executive Committee. So the Executive Committee does the real work. Section 64F fixes its composition: four elected representatives of members, an eminent person unconnected with insurance 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 states what this committee does. Think of it as three core jobs plus one residual job. First, aid and advise general insurers on standards of conduct, sound practice and efficient service to policyholders. Second, advise the Authority on controlling insurers' commission and other expenses. Third, bring to the Authority's notice any insurer acting in a manner prejudicial to the interests of general insurance policyholders. The residual job is to act in matters incidental or ancillary to these, as notified by the General Insurance Council in the Gazette of India with the Authority's approval.

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 waive the fees for any year by resolution. If the Authority approves that resolution, the committee must not collect fees for that year.

Note the role. The committee advises and reports. It does not itself punish insurers. Enforcement and decisions rest with the Authority.

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; Applies to insurers carrying on general insurance business. Section 64L(1)(a).
Function (b): expenses: Render advice to the Authority on controlling expenses of such insurers in commission and other expenses; Advice goes to the Authority, not to insurers. Section 64L(1)(b).
Function (c): prejudicial conduct: Bring to the Authority's notice any insurer acting prejudicially to holders of general insurance policies; The committee reports; it does not penalise. Section 64L(1)(c).
Function (d): incidental matters: Act in matters incidental or ancillary to (a) to (c), as notified by the General Insurance Council in the Gazette of India with the Authority's approval; Needs both notification and approval. Section 64L(1)(d).
Fees: Collect fees laid down in the Council's bye-laws from general insurers; Section 64L(2). Proviso: Council may waive fees for a year by resolution; if approved by the Authority, no fees are collected for that year.
Related provisions: s.64E authority = Executive Committee; s.64F composition; s.64H term of three years; s.64M annual meeting before 31 March on expense limits; Use these to support answers on the committee's status and work.

How to solve Section 64L: Functions of Executive Committee questions

Section 64L questions are usually short law or case-based questions. Use a fixed structure so you cover the provision, the facts and the conclusion.

1Identify the body. Confirm the question is about the Executive Committee of the General Insurance Council, not the Life Insurance Council.
2State the rule: Section 64L lists its functions in sub-section (1) and its fee power in sub-section (2).
3Pick the clause that fits the facts: (a) advice to insurers, (b) advice to the Authority on expenses, (c) reporting prejudicial conduct, (d) incidental matters.
4Check who the recipient is. Advice on conduct goes to insurers; advice on expenses and reports of prejudicial acts go to the Authority.
5For fee questions, apply sub-section (2) and the proviso: bye-laws set fees; waiver needs a Council resolution and the Authority's approval to bind the committee.
6Support with related sections where useful: 64E, 64F, 64H, 64M.
7Conclude clearly: state whether the committee can do the act, and by which clause.

Quickest way: Four-clause recall: advise, advise, report, incidental

When to use it: Use when you have little time and need a quick, safe answer on what the committee can do.

Write the four clauses in one line each: (a) advise insurers on conduct and service; (b) advise the Authority on commission and expenses; (c) report prejudicial insurers to the Authority; (d) incidental matters notified with approval.
Add the fee line: bye-law fees from general insurers, waivable by Council resolution approved by the Authority.
Add one line: it advises and reports, the Authority decides.
Cite 64L, and 64E or 64F if the question asks about status or composition.

Common mistakes in Section 64L: Functions of Executive Committee

Saying the committee can penalise insurers who act prejudicially.
Students assume a committee that watches conduct also enforces it.
Fix: Section 64L(1)(c) only lets it bring the case to the Authority's notice. Action is for the Authority.
Mixing up the Life and General Insurance Councils.
The two sets of sections (64C to 64R) are drafted in parallel.
Fix: Section 64L is for the General Insurance Council only. Check the word 'general' in the question.
Saying the committee advises insurers on expenses.
Clause (a) mentions advising insurers, so students blur it with clause (b).
Fix: Under clause (b) the advice on commission and expenses is rendered to the Authority.
Treating clause (d) as a free general power.
The words 'incidental or ancillary' sound wide.
Fix: It covers only matters incidental to clauses (a) to (c), notified by the Council in the Gazette with the Authority's approval.
Saying fees can be waived by the Executive Committee alone.
Students overlook who passes the resolution.
Fix: The General Insurance Council waives by resolution. The committee stops collecting only if the Authority approves it.

Worked examples

Example 1

A general insurer repeatedly delays settling claims and rejects them on weak grounds. Policyholders complain to the General Insurance Council's Executive Committee. Advise on what the committee can do under Section 64L.

Show the solution

Provision: Section 64L(1)(c) allows the committee to bring to the Authority's notice any such insurer acting in a manner prejudicial to the interests of holders of general insurance policies.
Facts: delays and weak rejections of claims harm policyholders, so the conduct is prejudicial.
Also under clause (a) the committee can aid and advise insurers on sound practice and efficient service to policyholders.
Limit: the committee does not itself penalise the insurer.

Answer: The committee can advise insurers on proper standards of service and should report the insurer to the Authority under Section 64L(1)(c). Any enforcement action is for the Authority.

Example 2

The General Insurance Council passes a resolution waiving fees for the current year. Can the Executive Committee still collect fees from insurers under Section 64L?

Show the solution

Provision: Section 64L(2) lets the committee collect fees laid down in the Council's bye-laws from general insurers.
The proviso lets the Council waive fees for any year by resolution.
Where the Authority has approved the resolution, the committee shall not collect any fees for that year.
Facts: the resolution exists, but approval by the Authority is not stated.

Answer: If the Authority has approved the resolution, the committee cannot collect fees for that year. Without such approval, the waiver does not bar collection under the proviso, so you should confirm approval first.

Exam tips

Learn the four clauses of 64L(1) in order and write them as short points.
Always name the recipient of advice or reports: insurers or the Authority.
Write section numbers only where sure: 64L, 64E, 64F, 64H, 64M are safe from the text.
In case questions, quote the clause, apply the facts, then give a one-line conclusion.
Mention the fee waiver proviso when a question touches on fees; it is a favourite detail.

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

Section 64L: Functions of 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.

CMA FinalExecutive Committee of General Insurance Council (64L)

Section 64L: Functions of Executive Committee: frequently asked questions

What is Section 64L of the Insurance Act, 1938?

It sets out the functions of the Executive Committee of the General Insurance Council. These are advising general insurers, advising the Authority on expenses, reporting prejudicial insurers and acting in incidental notified matters. It also allows fee collection.

Who is the Executive Committee of the General Insurance Council?

Under Section 64E it is the authority of the Council. Section 64F says it has four elected members, an eminent outsider nominated by the Authority, and four Authority nominees representing agents, third party administrators, surveyors and loss assessors, and policyholders.

Can the Executive Committee fine an insurer?

No. Section 64L only lets it bring prejudicial conduct to the Authority's notice. The Authority decides on any action.

Can the fees be waived?

Yes. The General Insurance Council may waive fees for a year by resolution. If the Authority approves it, the Executive Committee must not collect fees for that year.