IAI Actuarial Core Principles · Business Management · Activities of the Institute of Actuaries of India
A newly qualified actuary in Pune asks a colleague which statute provides the legal basis for the Institute of Actuaries of India and establishes it as a body corporate. Which of the following is correct?
The Institute of Actuaries of India derives its legal existence from the Actuaries Act, 2006, which constitutes it as a statutory body corporate. It is not registered under the Companies Act or the Societies Registration Act, and it is not created by insurance legislation.
- AThe Companies Act, 2013, under which the Institute is registered as a company
- BThe Insurance Act, 1938, which created the Institute to supervise insurers
- CThe Actuaries Act, 2006, which established the Institute as a statutory body corporateCorrect
- DThe Indian Contract Act, 1872, which governs membership agreements
- The Societies Registration Act, 1860, under which the Institute is registered as a society
Explanation
The Institute of Actuaries of India is constituted under the Actuaries Act, 2006, as a statutory body corporate. It is not a company, society or an insurance regulator, so the options referring to other statutes are wrong.
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