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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 wishes to relieve insurers from paying the prescribed fees to its Executive Committee for the coming year. Which course matches the Insurance Act, 1938?

The General Insurance Council may pass a resolution waiving the prescribed fees for a year. Once the Authority approves that resolution, the Executive Committee must not collect any fees for that year. Neither the Committee alone nor the Authority alone can waive them.

  1. AThe Executive Committee alone may waive the fees by a simple notice to members
  2. BThe Council may pass a resolution waiving the fees for a year, and once the Authority approves it the Executive Committee shall not collect fees for that yearCorrect
  3. CThe Authority may waive fees on its own without any Council resolution
  4. DFees can never be waived once laid down in the bye-laws

Explanation

The proviso to section 64L(2) lets the Council, if it thinks fit, waive collection of prescribed fees for any year by resolution. Where the Authority has approved the resolution, the Executive Committee shall not collect fees for that year. Waiver by a notice from the Executive Committee alone or by the Authority alone does not follow this route.

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