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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 the fees prescribed in its bye-laws for a year, since underwriting results were poor. Which statement is correct under section 64L?

The waiver is effective only once the Authority approves the Council's resolution. After approval, the Executive Committee shall not collect any fees for that year. The Council's resolution alone is insufficient, and there is no partial collection requirement.

  1. AThe waiver takes effect as soon as the Council passes the resolution
  2. BThe waiver needs approval of the Authority; once approved, the Executive Committee shall not collect fees for that yearCorrect
  3. CThe waiver can be made only by the Executive Committee, not the Council
  4. DThe Executive Committee must still collect half the fees

Explanation

The proviso to section 64L(2) lets the Council waive fees by resolution, but where the Authority has approved the resolution, the Executive Committee shall not collect any fees for that year. Passing the resolution alone is not enough, and the waiver is by the Council, not the Committee. No half-fee rule exists.

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