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CS Professional · Banking and Insurance - Laws and Practice · General and Health Insurance

Several health insurers complain that one insurer is paying commission and other expenses in a way that harms policyholders of health policies. Under section 64L, what is the Executive Committee of the General Insurance Council empowered to do?

The Executive Committee of the General Insurance Council can bring the case of an insurer acting prejudicially to the interests of policyholders to the notice of the Authority. It can also advise on controlling commission and expenses, but cannot cancel registration or penalise.

  1. ACancel the registration of that insurer
  2. BImpose a monetary penalty on the insurer directly
  3. CBring the case of an insurer acting prejudicially to policyholders' interests to the notice of the AuthorityCorrect
  4. DFix the premium of the insurer's health policies

Explanation

Section 64L(1)(c) lets the Executive Committee bring to the Authority's notice any insurer acting in a manner prejudicial to policyholders' interests. It also advises the Authority on controlling expenses, but it has no power to cancel registration or penalise.

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