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

The Authority asks the Executive Committee of the General Insurance Council for input on commission and other expenses of general insurers carrying on business in India. Which Section 64L function does this reflect?

This reflects the function of rendering advice to the Authority in controlling the expenses of general insurers, including commission and other expenses, under Section 64L(1)(b). The Committee only advises; it does not fix the limits itself, and its fees come from insurers.

  1. ARendering advice to the Authority in controlling insurers' expenses such as commissionCorrect
  2. BFixing the maximum commission payable by each insurer
  3. CCollecting fees from policyholders
  4. DAdvising policyholders on claim settlement

Explanation

Section 64L(1)(b) gives the Committee the function of rendering advice to the Authority in controlling expenses of general insurers, including commission and other expenses. It advises, not fixes limits; fees under 64L(2) are collected from insurers, not policyholders.

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