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

The General Insurance Council passes a resolution waiving collection of fees for the year 2026-27 from general insurers. The Authority has approved the resolution. Under Section 64L(2) and its proviso, what is the legal position?

The Executive Committee cannot collect any fees for that year. The proviso to Section 64L(2) allows the Council to waive fees by resolution, and once the Authority approves it, the Committee shall not collect fees in relation to that year.

  1. AThe Executive Committee shall not collect any fees for that yearCorrect
  2. BThe Executive Committee may still collect half the fees
  3. CThe resolution is void because only the bye-laws can fix fees
  4. DFees must be collected and later refunded

Explanation

Section 64L(2) lets the Executive Committee collect fees laid down in the bye-laws. Its proviso says the Council may by resolution waive collection for any year, and where the Authority has approved the resolution, the Committee shall not collect any fees for that year. A partial collection or later refund is not provided for, and the waiver proviso is itself statutory.

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