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

Bharat General Insurance Ltd. is underwriting a fresh portfolio of motor risks. The company wants guidance on setting standards of conduct and sound practice and on rendering efficient service to policyholders of general insurance. Under the Insurance Act, 1938, which body's Executive Committee is statutorily tasked to aid and advise insurers on these matters?

The Executive Committee of the General Insurance Council aids and advises general insurers on standards of conduct, sound practice and efficient service to policyholders. The Life Insurance Council covers life business, and the Tariff Committee and Regional Councils no longer figure as authorities.

  1. AExecutive Committee of the General Insurance CouncilCorrect
  2. BExecutive Committee of the Life Insurance Council
  3. CRegional Council of the Authority
  4. DTariff Committee of the General Insurance Council

Explanation

Section 64L(1)(a) says the Executive Committee of the General Insurance Council aids and advises general insurers on standards of conduct, sound practice and efficient service to policyholders. The Life Insurance Council deals with life business. The Tariff Committee was omitted from the Councils' authorities by the 1968 amendment, and the section on Regional Councils was omitted.

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