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

The Executive Committee of the General Insurance Council finds that a general insurer is acting in a way prejudicial to the interests of general insurance policyholders. What function does Section 64L(1) assign to the Committee in this situation?

The Committee must bring the insurer's case to the notice of the Authority. Section 64L(1)(c) gives it this reporting function for general insurers acting prejudicially to policyholders; it has no power to cancel registration, fix premiums or pay claims.

  1. ATo bring the insurer's case to the notice of the AuthorityCorrect
  2. BTo cancel the insurer's registration directly
  3. CTo fix the premium rates the insurer must charge
  4. DTo pay policyholders' claims out of the Council's fees

Explanation

Section 64L(1)(c) makes it a function of the Executive Committee to bring to the notice of the Authority the case of any general insurer acting in a manner prejudicial to policyholders' interests. The section gives it no power to cancel registration, fix premiums or settle claims.

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