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

The General Insurance Council wants its Executive Committee to collect fees from general insurers for the year but the Council passes a resolution waiving the fees for that year. Under Section 64L, when will the Executive Committee actually not collect fees for that year?

The Executive Committee stops collecting fees only where the Council's waiver resolution has been approved by the Authority. A resolution passed by the General Insurance Council alone does not suffice under the proviso to Section 64L(2).

  1. AImmediately once the Council passes the resolution
  2. BOnly when the resolution has been approved by the AuthorityCorrect
  3. COnly when every insurer consents in writing
  4. DOnly when the Central Government notifies it in the Gazette

Explanation

The proviso to Section 64L(2) allows the Council to waive fees by resolution, but the Executive Committee does not collect fees for the year only where the resolution has been approved by the Authority. A resolution alone is not enough.

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