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

Bharat Shield General Insurance Ltd seeks guidance on setting standards of conduct and sound practice and on delivering efficient service to its general insurance policyholders. Under the Insurance Act, 1938, which function of the Executive Committee of the General Insurance Council covers this?

The Committee's function of aiding and advising general insurers applies. Section 64L(1)(a) empowers it to help insurers set standards of conduct and sound practice and to render efficient service to holders of general insurance policies.

  1. AAdvising the Authority on commission and other expenses
  2. BAiding and advising insurers carrying on general insurance businessCorrect
  3. CCollecting fees from life insurers
  4. DAppointing the Secretary of the Life Insurance Council

Explanation

Section 64L(1)(a) says the Committee aids and advises general insurers on standards of conduct, sound practice and efficient service to policyholders. Option A concerns advice to the Authority, not insurers, and the others are unrelated to this function.

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