CS Professional · Banking and Insurance - Laws and Practice · Professional Opportunities
Suman Rao, a practising Company Secretary, is appointed as compliance officer of a life insurance company. The CEO asks what her core function will be in this role. Which is the most accurate description of her principal role?
The Company Secretary's principal role in an insurer is to ensure compliance with insurance and company law, including IRDAI regulations, and to advise the board on governance. Underwriting, actuarial valuation and claims settlement belong to other specialised functions, not the secretarial or compliance role.
- AUnderwriting high-value life proposals and fixing premium rates
- BEnsuring the insurer complies with the Insurance Act, IRDAI regulations and the Companies Act, and advising the board on themCorrect
- CActing as the appointed actuary and certifying policy liabilities
- DSettling claims above a prescribed value on behalf of the insurer
Explanation
A Company Secretary in an insurer acts as a compliance and governance professional, ensuring adherence to insurance and company law and advising the board. Underwriting, actuarial certification and claim settlement are separate functions handled by underwriters, the appointed actuary and the claims team.
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