Skip to content

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

Suraksha General Insurance Ltd, which writes motor and health cover, is a member of the General Insurance Council. Its Chief Financial Officer, Mr. Iyer, is asked to attend a Council meeting on the company's behalf, as the Managing Director is travelling. Under the Insurance Act, 1938, what is the position?

A member of the General Insurance Council may authorise any of its officers to act as its representative at a Council meeting. The Act does not restrict this to directors or the Managing Director, and no approval or nomination by the Authority is required.

  1. AHe cannot attend unless the Authority nominates him
  2. BThe member may authorise any of its officers to act as its representative at the meetingCorrect
  3. COnly a director of the member can attend as representative
  4. DOnly the Managing Director may represent a member

Explanation

Section 64D makes it lawful for any member of the Life Insurance Council or the General Insurance Council to authorise any of its officers to act as its representative at a meeting of the Council concerned. The authorisation is not limited to directors or the Managing Director, so option 3 and 4 are wrong. No nomination by the Authority is needed.

Did you get it right without looking?

One question tells you little. A timed set on Functions in Insurance and Compliance related thereto (Part II) shows your real accuracy, how long you take and where you lose marks.

Practise Functions in Insurance and Compliance related thereto (Part II)Free diagnostic mock

More Functions in Insurance and Compliance related thereto (Part II) questions