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CMA Final · Risk Management in Banking and Insurance · General Insurance

Consider these statements about the Insurance Act, 1938. (I) The General Insurance Council may collect fees from insurers carrying on general insurance business, as laid down in its bye-laws. (II) If the General Insurance Council resolves to waive the fees for a year and the Authority approves the resolution, the Executive Committee shall not collect fees for that year. (III) The Council may waive the fees for a year without any approval of the Authority. Which statements are correct?

Statements I and II are correct. The Executive Committee may collect fees laid down in the Council's bye-laws, and a Council resolution waiving fees for a year bars collection only when the Authority has approved it. Statement III is wrong because a waiver needs the Authority's approval.

  1. AI and II onlyCorrect
  2. BII and III only
  3. CI and III only
  4. DI, II and III

Explanation

The Executive Committee may collect fees laid down in the bye-laws (I). A waiver by Council resolution takes effect, so that no fees are collected, only where the Authority has approved the resolution (II). Statement III omits the approval requirement and is wrong.

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