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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 wants to take up a matter incidental to its functions under clauses (a) to (c) of Section 64L(1). What must happen for it to act under clause (d)?

Under Section 64L(1)(d), incidental or ancillary matters can be acted upon only if the Authority approves and the General Insurance Council notifies them in the Gazette of India. Central Government approval is not the requirement, and the matter is not free of approval merely because it is ancillary.

  1. AThe matter must be approved by the Authority and notified by the General Insurance Council in the Gazette of IndiaCorrect
  2. BThe matter must be approved by the Central Government and notified by the Authority
  3. CThe Life Insurance Council must pass a resolution approving it
  4. DNo approval is needed if the matter is purely ancillary

Explanation

Section 64L(1)(d) allows action in incidental or ancillary matters as, with the approval of the Authority, may be notified by the General Insurance Council in the Gazette of India. Central Government approval was replaced by the Authority's approval.

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