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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 resolves to waive collection of fees for a year from general insurers. The Executive Committee's bye-laws otherwise allow it to collect fees. Under section 64L(2) and its proviso, when will the Executive Committee be barred from collecting fees for that year?

The Executive Committee is barred from collecting fees for that year once the Council's waiver resolution has been approved by the Authority. Under the proviso to section 64L(2), the resolution alone is insufficient; Authority approval is the condition that stops collection.

  1. AWhen the Council's waiver resolution has been approved by the AuthorityCorrect
  2. BAs soon as the Council passes the resolution, without any approval
  3. COnly when the Central Government notifies the waiver in the Gazette
  4. DOnly when all insurers consent in writing

Explanation

The proviso allows the General Insurance Council to waive collection by resolution, and where the resolution has been approved by the Authority, the Executive Committee shall not collect fees for that year. A resolution alone, without Authority approval, does not bar collection.

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