Skip to content

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 notices that Surya General Insurance Ltd has repeatedly acted in a manner harming general policyholders. What is the function of the Committee under Section 64L in this situation?

The Committee brings the case of the insurer acting prejudicially to the interests of general policyholders to the notice of the Authority, under Section 64L(1)(c). It has no stated power to penalise, cancel registration or seek winding up itself.

  1. AImpose a monetary penalty on the insurer directly
  2. BBring the insurer's case to the notice of the AuthorityCorrect
  3. CCancel the insurer's registration and notify the Gazette
  4. DDirect the insurer to be wound up through the Tribunal

Explanation

Section 64L(1)(c) requires the Committee to bring to the Authority's notice any such insurer acting in a manner prejudicial to general policyholders' interests. The Committee itself has no listed power to penalise, cancel registration or wind up; those lie with the Authority or other forums.

Did you get it right without looking?

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

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

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