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

The General Insurance Council resolves to waive collection of the prescribed fees for the year and the Authority approves the resolution. What is the effect under the Insurance Act, 1938?

The Executive Committee shall not collect any fees for that year. Under the proviso to section 64L(2), once the General Insurance Council passes a waiver resolution and the Authority approves it, no fees can be collected from general insurers for the year concerned.

  1. AThe Executive Committee must collect half the fees
  2. BThe Executive Committee shall not collect any fees for that yearCorrect
  3. CThe Executive Committee may still collect fees from insurers with a large premium
  4. DThe Executive Committee must collect fees but only from intermediaries

Explanation

The proviso to section 64L(2) lets the Council waive fees by resolution. Once the Authority approves it, the Executive Committee shall not collect any fees for that year. The other options contradict this outright bar.

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