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IAI Actuarial Core Principles · Business Management · Activities of the Institute of Actuaries of India

Ananya, an Associate of the IAI, is accused of professional misconduct by a policyholder. She argues that, as a body governing itself, the IAI should simply let the Council President decide the outcome privately without a hearing. Which response reflects sound governance principles under the Actuaries Act, 2006?

Ananya is wrong. The Act sets up a disciplinary process in which a complaint is inquired into by the designated disciplinary bodies and the member gets a fair hearing. The President cannot decide alone and in private, and the Institute does have power to act on proven misconduct.

  1. AShe is correct, because the President has unlimited personal authority over members
  2. BShe is correct, because only the Government can hold hearings
  3. CShe is wrong, because complaints are dealt with through a defined disciplinary process with an inquiry and an opportunity for her to be heard, with action decided by the proper disciplinary bodyCorrect
  4. DShe is wrong, because misconduct complaints are decided by a vote of all policyholders
  5. She is wrong, because the Institute has no power to take any action against members

Explanation

The Act provides a disciplinary mechanism with inquiry by designated bodies and the member's right to be heard, in line with natural justice. A single person deciding privately would breach this. Policyholder voting and a complete lack of power are both unsupported, and the Government does not hold the hearings.

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