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IAI Actuarial Core Principles · Business Management · Actuaries Act, 2006 and IAI governance

Asha has just qualified as an actuary and asks her mentor about the legal status of the Institute of Actuaries of India (IAI). Which statement correctly describes the IAI under the Actuaries Act, 2006?

The IAI is a statutory body corporate created by the Actuaries Act, 2006, with perpetual succession and a common seal. It is not a government department, a company or a voluntary society, and it does not supervise insurers.

  1. AA statutory body corporate established by an Act of Parliament, with perpetual succession and a common sealCorrect
  2. BA voluntary society registered only under the Societies Registration Act, with no statutory powers
  3. CA government department functioning under the Ministry of Finance
  4. DA private limited company incorporated under the Companies Act
  5. A regulatory arm of the insurance regulator that supervises insurers directly

Explanation

The Actuaries Act, 2006 established the IAI as a body corporate by statute, with perpetual succession and a common seal. It is not a society, company or government department. It is also not an insurance supervisor; the insurance regulator does that.

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