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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 the fees collected by its Executive Committee from general insurers for a particular year. Under section 64L, when will the Executive Committee not collect any fees for that year?

The Executive Committee will not collect fees for that year once the Authority has approved the Council's waiver resolution. The Council may resolve to waive prescribed fees for any year, but under the proviso to section 64L(2) the approval of the Authority makes the waiver effective.

  1. AWhen the Authority has approved the Council's resolution of waiverCorrect
  2. BWhen any one insurer objects to the fee
  3. CWhen the Central Government notifies it in the Gazette
  4. DWhen the resolution is passed by the Council alone, without approval

Explanation

The proviso to section 64L(2) lets the Council by resolution waive the prescribed fees for a year, and where the Authority has approved the resolution, the Executive Committee shall not collect fees for that year. A resolution without approval is not enough, so the last option is wrong.

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