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

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

Updated 11 October 2026 · Fact-checked

Section 64L of the Insurance Act, 1938 sets out what the Executive Committee of the General Insurance Council does. It aids and advises general insurers on standards of conduct, sound practice and efficient service to policyholders. It advises the Authority on commission and expenses, reports prejudicial insurers, and acts in incidental matters.

Understand Functions of Executive Committee of General Insurance Council

The Insurance Act, 1938 recognises 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 insurance business and re-insurance in India. Section 64E says the authority of each Council is its Executive Committee.

So the Executive Committee is the working body. Section 64L lists what it must do for general insurance. Think of it as a self-regulation arm of the industry that works alongside the regulator, called the Authority in the Act.

The functions fall into four groups. First, it aids and advises insurers on standards of conduct and sound practice, and on rendering efficient service to holders of general insurance policies. Second, it advises the Authority on controlling insurers' expenses, in the matter of commission and other expenses. Third, it brings to the Authority's notice any insurer acting in a manner prejudicial to the interests of general insurance policyholders. Fourth, it acts in incidental or ancillary matters.

The fourth group has a condition. Such matters must be notified by the General Insurance Council in the Gazette of India, with the approval of the Authority. Also, to discharge its functions, the Committee 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 that resolution, the Committee shall not collect fees for that year.

Note the direction of each function. Advice goes to insurers in clause (a) and to the Authority in clause (b). Clause (c) is reporting to the Authority. The Committee advises and reports; the power to act against an insurer stays with the Authority.

Key rules to remember

Section 64L(1)(a): Aid and advise general insurers on standards of conduct, sound practice and efficient service to policyholders; Directed at insurers carrying on general insurance business.
Section 64L(1)(b): Render advice to the Authority on controlling expenses of such insurers, in commission and other expenses; Applies to insurers carrying on business in India.
Section 64L(1)(c): Bring to the Authority's notice any insurer acting prejudicially to the interests of general insurance policyholders; A reporting function, not a power to penalise.
Section 64L(1)(d): Act in incidental or ancillary matters notified by the General Insurance Council in the Gazette of India, with the Authority's approval; Both the notification and the approval are needed.
Section 64L(2) and proviso: Collect fees as laid down in the bye-laws; fees for a year may be waived by Council resolution approved by the Authority; The Committee does not collect fees for that year once the resolution is approved.
Composition under section 64F(2): 4 elected representatives of members + 1 eminent person not connected with insurance + 4 persons for agents, third party administrators, surveyors and loss assessors, and policyholders; The Chairperson is elected from the four elected representatives. Nominations are by the Authority.

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

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

1Identify the body: General Insurance Council, its Executive Committee, or the Life Insurance Council. Do not mix them up.
2Name the provision: section 64L, with section 64E for the Committee's status.
3List the functions in order, (a) to (d), each with its direction: to insurers or to the Authority.
4For a case, match each fact to one clause. Advice on commission points to (b). A prejudicial insurer points to (c). Service standards point to (a).
5Check conditions: clause (d) needs Gazette notification and the Authority's approval. Fee waiver needs a resolution and the Authority's approval.
6Conclude clearly. State that the Committee advises or reports, and the Authority decides on action.
7Add a practical point such as bye-laws, fees, or the meeting before 31 March under section 64M.

Quickest way: Four-clause recall

When to use it: Short-answer questions or when you have only a few minutes.

Write the four verbs: aid and advise, advise Authority, bring to notice, act in incidental matters.
Attach the object to each: conduct and service, expenses, prejudicial insurers, notified matters.
Add one line on fees under sub-section (2).
Close with section 64M: it must meet at least once before 31 March each year to advise the Authority on expense limits under section 40C.

Common mistakes in Functions of Executive Committee of General Insurance Council

Saying the Executive Committee can penalise an insurer that acts against policyholders' interests.
Students assume a body that watches conduct also enforces it.
Fix: Section 64L(1)(c) only lets it bring the matter to the Authority's notice. Action lies with the Authority.
Applying section 64L to life insurers.
The Life and General Councils have similar structures and names.
Fix: Section 64L covers the General Insurance Council's Executive Committee and general insurance policyholders only.
Forgetting the conditions in clause (d).
Students remember 'incidental matters' and skip the proviso-like condition.
Fix: Write that the matter must be notified by the General Insurance Council in the Gazette of India, with the Authority's approval.
Writing 'Controller' or 'Central Government' as the body advised.
Old textbooks use the earlier wording.
Fix: The current text says the Authority. Those words were substituted by Act 41 of 1999.
Stating that fees are always payable.
Students overlook the waiver proviso.
Fix: The Council can waive fees for a year by resolution. Once the Authority approves it, the Committee shall not collect fees for that year.

Worked examples

Example 1

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

Show the solution

State the provision: section 64L(1) lists the functions of the Executive Committee of the General Insurance Council.
Clause (a): aid and advise insurers carrying on general insurance business on standards of conduct and sound practice, and on rendering efficient service to policyholders.
Clause (b): advise the Authority on controlling the expenses of such insurers carrying on business in India, in commission and other expenses.
Clause (c): bring to the Authority's notice any such insurer acting in a manner prejudicial to the interests of general insurance policyholders.
Clause (d): act in incidental or ancillary matters, as notified by the General Insurance Council in the Gazette of India with the Authority's approval.
Sub-section (2): it may collect fees under the bye-laws from general insurers to discharge its functions.

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

Example 2

Suraksha General Insurance Ltd., a general insurer, repeatedly delays settlement of small claims and pays unusually high commission to agents. Advise what the Executive Committee of the General Insurance Council can do.

Show the solution

Identify the body and law: the Committee under section 64L, as Suraksha is a general insurer.
Delay in claim settlement relates to efficient service to policyholders. Under clause (a), the Committee can aid and advise Suraksha on standards of conduct and sound practice.
High commission relates to expenses. Under clause (b), the Committee can advise the Authority on controlling commission and other expenses.
If the conduct is prejudicial to policyholders' interests, clause (c) lets the Committee bring the case to the Authority's notice.
Limit of power: the Committee does not itself penalise. Section 64M(2) lets the Authority, after hearing the insurer, give a warning for contravening section 40C on management expenses.
Conclude with the combined course: advise Suraksha, advise the Authority on commission, and report if prejudice continues.

Answer: The Committee can advise Suraksha on claim service standards (clause (a)), advise the Authority on commission control (clause (b)), and report the insurer to the Authority if its conduct is prejudicial (clause (c)). Any action against the insurer rests with the Authority.

Exam tips

Write the four clauses as a numbered list. Examiners look for all four.
Always say 'the Authority' and not 'Controller' or 'Central Government'.
In case questions, tie each fact to a specific clause before concluding.
Add a line on sub-section (2) fees and the waiver proviso to show depth.
Link with sections 64C, 64E, 64F and 64M for a complete answer on the Council structure.

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

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

What is the General Insurance Council?

Under section 64C, it is the representative body of insurers who carry on general, health insurance business and re-insurance in India. Its authority is the Executive Committee, as section 64E provides.

Can the Executive Committee take action against an insurer?

Section 64L only lets it advise insurers, advise the Authority, and bring prejudicial conduct to the Authority's notice. Action against insurers is for the Authority.

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

Under section 64F(2), four elected representatives of members, one eminent person not connected with insurance business, and four persons representing agents, third party administrators, surveyors and loss assessors, and policyholders. The Authority nominates the last two groups, and the Chairperson is elected from the four elected members.

How long does the Executive Committee last?

Section 64H gives it a duration of 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.