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

The General Insurance Council passes a resolution waiving collection of fees for the year from general insurers. Under the Insurance Act, 1938, when will the Executive Committee be barred from collecting fees for that year?

The Executive Committee is barred from collecting fees for the year once the Council's waiver resolution has been approved by the Authority. A resolution without that approval does not stop collection. No Central Government notification or unanimous insurer consent is required.

  1. AImmediately on passing of the resolution by the Council
  2. BOnly after the Central Government notifies the waiver in the Gazette
  3. COnce the resolution has been approved by the AuthorityCorrect
  4. DOnly if all insurers unanimously consent to the waiver

Explanation

The proviso to section 64L(2) lets the Council waive fees by resolution, and where the Authority has approved the resolution, the Executive Committee shall not collect fees for that year. The resolution alone is not enough. Central Government notification and unanimous insurer consent are not required.

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