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CS Professional · Banking and Insurance - Laws and Practice · Concept of Insurance

The General Insurance Council passes a resolution waiving collection of the prescribed fees from general insurers for a particular year. Under the Act, when must the Executive Committee refrain from collecting fees for that year?

Only after the Authority approves the resolution. The proviso to Section 64L(2) permits the General Insurance Council to waive fees for a year by resolution, but the Executive Committee is barred from collecting fees only where the Authority has approved that resolution.

  1. AAs soon as the Council passes the resolution
  2. BOnly after the resolution has been approved by the AuthorityCorrect
  3. COnly after a majority of insurers consent in writing
  4. DOnly after the resolution is notified by the Central Government

Explanation

The proviso to Section 64L(2) lets the Council waive fees by resolution, but the Executive Committee stops collecting only where the resolution has been approved by the Authority. The resolution alone is not enough.

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