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

The Executive Committee of the General Insurance Council collects fees from general insurers under the bye-laws of the Council. For a particular year, the General Insurance Council passes a resolution to waive the fees. Under the Insurance Act, 1938, when will the Executive Committee be barred from collecting fees for that year?

The Executive Committee stops collecting fees only when the Council's waiver resolution has been approved by the Authority. Passing the resolution alone is not enough, and neither Central Government notification nor unanimous consent of insurers is required.

  1. AImmediately upon the Council passing the resolution
  2. BWhen the resolution is approved by the AuthorityCorrect
  3. CWhen the resolution is notified by the Central Government
  4. DWhen all member insurers consent in writing

Explanation

The proviso to section 64L(2) allows the Council to waive fees by resolution, but the Executive Committee must not collect fees for that year only where the resolution has been approved by the Authority. The resolution alone (option 1) is insufficient.

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