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

Functions of the Executive Committee of the General Insurance Council

Updated 11 October 2026 · Fact-checked

Under section 64L of the Insurance Act, 1938, the Executive Committee of the General Insurance Council advises general insurers on standards of conduct and efficient service, advises the Authority on controlling commission and expenses, reports insurers acting against policyholders' interests, and acts in notified incidental matters. It may collect fees under the bye-laws.

Understand Functions of General Insurance Council Executive Committee

The Insurance Act, 1938 sets up two representative bodies of insurers: the Life Insurance Council and the General Insurance Council. Under section 64C, the General Insurance Council represents insurers who carry on general, health and re-insurance business in India. The Life Insurance Council represents life insurers.

A Council does not act directly. Under section 64E, its authority is the Executive Committee. So the work of the Council is done by the Executive Committee, and section 64L lists what the General Insurance Council's committee must do.

Think of the committee as a bridge. On one side are general insurers, whom it guides on good conduct and good service to policyholders. On the other side is the Authority (the insurance regulator), to whom it gives advice on expenses and reports bad conduct. It is a self-regulating and advisory body. It is not the regulator.

Section 64L has two parts. Sub-section (1) lists four functions in clauses (a) to (d). Sub-section (2) lets the committee collect fees, as laid down in the bye-laws, from general insurers so that it can work effectively. Clause (d) is a residual function and only works with the Authority's approval and a Gazette notification.

Linked sections help in long answers. Section 64F gives its composition, 64H its three-year term, 64M its yearly meeting on management expenses, and 64R the Council's general powers.

Key rules to remember

Function (a): standards and service: Aid and advise general insurers on standards of conduct, sound practice and efficient service to policyholders; Section 64L(1)(a). The advice is to insurers carrying on general insurance business.
Function (b): expenses: Advise the Authority on controlling insurers' commission and other expenses; Section 64L(1)(b). The advice goes to the Authority, not to insurers.
Function (c): reporting: Bring to the Authority's notice any general insurer acting prejudicially to policyholders' interests; Section 64L(1)(c). This is a duty to report to the Authority.
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; Section 64L(1)(d). Both the notification and the approval are needed.
Fees: Collect fees laid down in the Council's bye-laws from general insurers; Section 64L(2). Proviso: the Council may by resolution waive fees for a year, and if the Authority approves the resolution, no fees are collected for that year.

How to solve Functions of General Insurance Council Executive Committee questions

Use this method for any question on the functions of the Executive Committee, whether theory or a short case.

1Identify the body. Check whether the facts concern the General Insurance Council or the Life Insurance Council, and name the committee as the Council's authority (section 64E).
2State the provision: section 64L of the Insurance Act, 1938.
3Match the facts to a clause: standards and service (a), expenses advice (b), reporting a prejudicial insurer (c), incidental matters (d), or fees (sub-section 2).
4Say who the committee deals with: insurers in (a), the Authority in (b) and (c).
5Apply the facts to the clause in one or two sentences, with the reason.
6Check conditions: for (d), Gazette notification and Authority approval; for fees, the bye-laws and the waiver proviso.
7Conclude clearly, and add a compliance or practical point such as the insurer's duty to follow sound practice.

Quickest way: A-B-C-D plus fees

When to use it: Use it for short notes and one-line questions where you must list the functions fast.

Write the section: 64L(1) and (2).
A: Advise insurers on conduct, sound practice and service.
B: Brief the Authority on commission and expenses.
C: Complain to the Authority about prejudicial insurers.
D: Do incidental acts, if notified with approval.
Add fees under the bye-laws and the waiver proviso.

Common mistakes in Functions of General Insurance Council Executive Committee

Saying the committee fixes the limit on management expenses or commission.
Students mix section 64L(1)(b) with the Authority's power in section 40C.
Fix: Write that the committee only advises the Authority. Under section 64M it meets at least once before 31 March each year to advise on expense limits, and the Authority fixes them.
Attributing the functions to the Life Insurance Council.
The two Councils have parallel provisions and similar names.
Fix: Section 64L covers only the General Insurance Council's committee. Remember that the General Council covers general, health and re-insurance business.
Saying the committee penalises insurers that act against policyholders.
Students assume a body that watches conduct also punishes.
Fix: Its function in clause (c) is to bring such cases to the notice of the Authority. It reports; it does not penalise.
Treating clause (d) as a free power to do anything.
The words 'incidental or ancillary' look wide.
Fix: State that such matters must be connected to clauses (a) to (c), and need the Authority's approval and notification by the Council in the Gazette.
Forgetting the fee provision or the waiver proviso.
Students stop after the four clauses of sub-section (1).
Fix: Always add sub-section (2): fees as per bye-laws, and waiver by Council resolution, effective if approved by the Authority.

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

Introduce: under section 64E the Executive Committee is the authority of the General Insurance Council, and section 64L lists its functions.
Clause (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.
Clause (b): it advises the Authority on controlling the expenses of such insurers in India, in the matter of commission and other expenses.
Clause (c): it brings to the Authority's notice any such insurer acting in a manner prejudicial to policyholders' interests.
Clause (d): it acts in incidental or ancillary matters as notified by the Council in the Gazette of India with the Authority's approval.
Sub-section (2): it may collect fees laid down in the bye-laws from general insurers. The Council may waive the 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 collects fees under the bye-laws.

Example 2

Surya General Insurance Ltd., a general insurer, repeatedly delays settling small claims and refuses to follow common service norms, harming policyholders. What can the Executive Committee of the General Insurance Council do?

Show the solution

Provision: section 64L of the Insurance Act, 1938 applies, as Surya is a general insurer.
Clause (a): the committee can aid and advise Surya on standards of conduct, sound practice and efficient service to policyholders.
Clause (c): if Surya's conduct is prejudicial to policyholders' interests, the committee must bring the case to the notice of the Authority.
Limit: the committee has no power under this section to penalise Surya. Any action is for the Authority.
Practical point: Surya should adopt sound claim-handling practice and cooperate with the committee to avoid being reported.

Answer: The committee can advise Surya on service standards under clause (a) and, if the conduct continues and harms policyholders, report it to the Authority under clause (c). It cannot itself penalise Surya.

Exam tips

Learn the clauses by letter. Examiners often ask for 'functions under section 64L', and a lettered list scores cleanly.
Always name who receives the advice: insurers in (a), the Authority in (b) and (c).
Add sub-section (2) on fees and the waiver proviso to lift a short answer.
In case questions, follow provision, analysis, conclusion. Say clearly that the committee reports and advises but does not penalise.
Be ready to contrast the Life and General Insurance Councils: the General Council covers general, health and re-insurance business.

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

Functions of 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 General Insurance Council Executive Committee: 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 acts. It also allows fee collection.

What is the difference between the Life Insurance Council and the General Insurance Council?

Under section 64C, the Life Insurance Council represents insurers carrying on life insurance business. The General Insurance Council represents insurers carrying on general, health insurance and re-insurance business. Each acts through its own Executive Committee.

Can the Executive Committee penalise a general insurer?

No. Under section 64L it advises insurers and the Authority and brings prejudicial conduct to the Authority's notice. Under section 64M, warnings and further action on breach of expense limits are for the Authority.

How is the Executive Committee of the General Insurance Council constituted?

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