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

The General Insurance Council passes a resolution waiving the fees that its Executive Committee would collect from general insurers for the year. Under Section 64L of the Insurance Act, 1938, when does the Executive Committee actually stop collecting fees for that year?

The Executive Committee stops collecting fees only after the Authority approves the Council's waiver resolution. Under the proviso to Section 64L(2) the Council may waive fees by resolution, but the bar on collection for that year applies where the Authority has approved it.

  1. AImmediately on the resolution being passed by the Council
  2. BOnly when the Council's resolution has been approved by the AuthorityCorrect
  3. COnly when the Central Government notifies it in the Gazette
  4. DWhen a majority of insurers agree in writing

Explanation

The proviso to Section 64L(2) lets the Council waive the fees by resolution, but the Executive Committee is barred from collecting fees for that year only where the Authority has approved the resolution. A resolution alone, without approval, does not stop collection.

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