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

The Executive Committee of the General Insurance Council receives complaints that a general insurer is repeatedly delaying claim settlements to the detriment of policyholders. Which function under section 64L(1) is the Committee primarily exercising if it reports the insurer to the regulator?

The Committee is exercising its function of bringing to the regulator's notice any insurer acting in a manner prejudicial to the interests of general insurance policyholders, under section 64L(1)(c). It cannot itself remove directors or appoint an Administrator; those are regulator powers.

  1. ACollecting fees from insurers under the bye-laws
  2. BBringing to the notice of the regulator the case of any insurer acting in a manner prejudicial to the interests of general insurance policyholdersCorrect
  3. CRemoving the insurer's directors from office
  4. DAppointing an Administrator for the insurer

Explanation

Section 64L(1)(c) lets the Executive Committee bring to the regulator's notice any insurer acting prejudicially to general policyholders. Removal of directors is the regulator's power under section 34B, and Administrator appointment under 52A relates to life insurers. Option A is a funding power, not a reporting one.

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