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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 wants to take up a matter incidental to its core functions under section 64L, which is not listed in clauses (a) to (c). What must happen before it can act on it as a statutory function?

The matter must be notified by the General Insurance Council in the Gazette of India with the approval of the Authority. Under section 64L(1)(d), only incidental or ancillary matters so notified become functions of the Executive Committee beyond clauses (a) to (c).

  1. ANothing, as the Committee has unrestricted power to act
  2. BThe matter must be notified by the General Insurance Council in the Gazette of India with the Authority's approvalCorrect
  3. CThe insurers must pass a unanimous resolution
  4. DA court must give permission

Explanation

Section 64L(1)(d) lets the Committee act on incidental or ancillary matters only as notified by the General Insurance Council in the Gazette of India with the Authority's approval. Unrestricted power, an insurer resolution or a court order is not the route.

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