CS Professional · Banking and Insurance - Laws and Practice · Functions in Insurance and Compliance related thereto (Part IV)
The Executive Committee of the General Insurance Council is being constituted. Which statement about its composition is correct under the Insurance Act, 1938?
The General Insurance Council's Executive Committee has four elected member representatives, one eminent outsider nominated by the Authority, and four nominees representing agents, third party administrators, surveyors and loss assessors, and policyholders. Its Chairperson is elected from among the four elected representatives.
- AFour elected representatives of Council members, one eminent person unconnected with insurance nominated by the Authority, and four nominated persons representing agents, third party administrators, surveyors and loss assessors, and policyholders; the Chairperson is elected from among the four elected representativesCorrect
- BFour elected representatives, one eminent person, and three nominated persons representing agents, intermediaries and policyholders; the Authority appoints the Chairperson
- CEight elected representatives of members only, with the Chairperson nominated by the Authority
- DFour elected representatives and one representative each from self-help groups and Insurance Co-operative Societies
Explanation
Section 64F(2) prescribes four elected members, one eminent person nominated by the Authority, and four nominated persons representing agents, third party administrators, surveyors and loss assessors, and policyholders. The Chairperson is elected from the four elected representatives. The second option mixes in the Life Insurance Council pattern of three nominees, and the fourth is also the life pattern of self-help group and co-operative society representatives.
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