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

The Executive Committee of the Life Insurance Council has four elected insurer representatives, and the bodies entitled to elect them fail to elect one of the four. Which statement is correct under the Insurance Act, 1938?

The Authority may nominate any person to fill the vacancy. That nominee is deemed to be a member of the Executive Committee as if duly elected. The seat does not remain vacant, and neither the Chairperson nor the Central Government fills it.

  1. AThe seat stays vacant until the next election
  2. BThe Authority may nominate a person, who is deemed to be duly elected as a memberCorrect
  3. CThe Chairperson of the Committee fills the vacancy by casting vote
  4. DThe Central Government fills the vacancy by notification

Explanation

Section 64F(3) provides that where a body fails to elect any member, the Authority may nominate a person to fill the vacancy, and that person is deemed a member as if duly elected. The seat need not stay vacant, and neither the Chairperson nor the Central Government has this power.

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