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

Kaveri General Insurance is accused of acting in a way that harms general policyholders. Which function does Section 64L assign to the Executive Committee of the General Insurance Council in such a case?

The Executive Committee of the General Insurance Council is to bring to the notice of the Authority the case of any general insurer acting in a manner prejudicial to the interests of general policyholders. It cannot itself cancel registration or appoint an Administrator.

  1. ATo bring the case of such an insurer to the notice of the AuthorityCorrect
  2. BTo cancel the insurer's registration directly
  3. CTo appoint an Administrator to manage the insurer
  4. DTo fix the insurer's solvency margin

Explanation

Section 64L(1)(c) lets the Executive Committee bring to the Authority's notice any insurer acting prejudicially to general policyholders. Appointing an Administrator is under Section 52A and concerns life insurers and the Authority, not the Committee.

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