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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 wants its Executive Committee to collect fees from general insurers for the year to meet its costs. Under section 64L(2) and its proviso, which statement is correct?

Fees can be collected from general insurers as laid down in the Council's bye-laws. The Council may pass a resolution waiving them for a year, and once the Authority approves it, the Executive Committee collects no fees for that year, under section 64L.

  1. AFees may be collected as laid down in the Council's bye-laws; the Council may by resolution waive them for a year, and if the Authority approves, no fees are collected for that yearCorrect
  2. BFees are fixed by the insurers individually and cannot be waived
  3. CFees are collected only from life insurers
  4. DThe Council may waive fees for a year without any approval and the Executive Committee must still collect them

Explanation

Section 64L(2) allows fees as per bye-laws from general insurers. The proviso lets the Council waive by resolution, and where the Authority approves, the Executive Committee collects no fees for that year. Option D ignores the effect of approval.

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