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

Himalaya General Insurance wants advice on setting standards of conduct and sound practice, and on rendering efficient service to holders of general insurance policies, including prompt claim settlement. Under section 64L, what is the Executive Committee of the General Insurance Council's role?

The Executive Committee of the General Insurance Council aids and advises general insurers on setting standards of conduct and sound practice and on rendering efficient service to policyholders. Under section 64L it is an advisory and aiding body, not an adjudicator of claims, a rate-fixing body or a winding-up authority.

  1. AIt aids and advises insurers on standards of conduct, sound practice and efficient service to policyholdersCorrect
  2. BIt directly settles disputed claims between insurers and policyholders
  3. CIt fixes premium rates that every insurer must charge
  4. DIt orders the winding up of insurers that delay claims

Explanation

Section 64L(1)(a) says the Executive Committee aids and advises general insurers on setting standards of conduct and sound practice and on rendering efficient service to policyholders. The provision gives it no power to settle claims, fix premium rates or order winding up.

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