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

The General Insurance Council passes a resolution waiving collection of the prescribed fees for a year, and the Authority approves it. What is the legal effect under section 64L?

Where the General Insurance Council resolves to waive prescribed fees for a year and the Authority approves the resolution, the Executive Committee shall not collect any fees for that year, as the proviso to section 64L(2) provides.

  1. AThe Executive Committee of the General Insurance Council shall not collect any fees for that yearCorrect
  2. BThe Executive Committee may still collect half the fees
  3. CThe fees are collected but refunded later
  4. DThe waiver is valid even without the Authority's approval

Explanation

The proviso to section 64L(2) states that if the Council passes a resolution waiving the fees and the Authority approves it, the Executive Committee shall not collect any fees for that year. Partial collection is not provided, and the waiver's effect depends on approval by the Authority.

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