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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 wishes to take up a matter that is incidental or ancillary to its core functions of advising insurers, advising the Authority on expenses, and reporting prejudicial insurers. What must happen for it to act on that matter as a function?

Such a matter becomes a function only when the General Insurance Council notifies it in the Gazette of India with the approval of the Authority. Under section 64L(1)(d), an internal resolution alone, a court order or a members' meeting does not suffice.

  1. AIt must pass a resolution of its own, with no further step
  2. BIt must be notified by the General Insurance Council in the Gazette of India with the Authority's approvalCorrect
  3. CIt must obtain a court order from the High Court
  4. DIt must be notified by the insurers' members in a general meeting

Explanation

Section 64L(1)(d) allows action in incidental or ancillary matters as notified by the General Insurance Council in the Gazette of India with the approval of the Authority. A mere internal resolution is not enough.

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