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IAI Actuarial Core Principles · Business Management · Activities of the Institute of Actuaries of India

Rahul is a Fellow of the IAI and is asked how the Institute is run day to day. Which statement best describes the governance arrangement under the Actuaries Act, 2006?

The IAI is governed by a Council, with elected members and some nominated ones, and the Council can set up committees to carry out particular functions. The government does not run it directly, members do not vote on daily decisions, and it is not controlled by one person.

  1. AThe Government of India appoints all members of the Council and runs the Institute directly
  2. BEvery member votes on each operational decision at a monthly general meeting
  3. CThe Institute is governed by a Council, which is partly elected by members and may form committees to carry out its functionsCorrect
  4. DThe insurance regulator nominates the full Council and approves every exam paper
  5. The Institute has no governing body and relies on a single President acting alone

Explanation

The Act provides for a Council as the governing body, with members mostly elected by the membership plus some nominated members. The Council may constitute committees for specific functions such as education or discipline. The other options either centralise control in government or the regulator, or deny a governing body exists.

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