CS Professional · Banking and Insurance - Laws and Practice · General and Health Insurance
The General Insurance Council wishes to waive the fees collected by its Executive Committee from insurers for a year. Which statement correctly reflects the Insurance Act, 1938 (section 64L)?
The General Insurance Council may waive the prescribed fees for a year by passing a resolution, and where the Authority approves that resolution, the Executive Committee must not collect fees for that year. Approval of the Authority is the key condition.
- AThe Council may waive by resolution, and once the Authority approves the resolution the Executive Committee shall not collect fees for that yearCorrect
- BThe Executive Committee alone may waive fees without any resolution
- CThe Council's resolution is effective without any approval of the Authority
- DFees can never be waived once laid down in the bye-laws
Explanation
The proviso to section 64L(2) permits the Council, by resolution, to waive collection of fees for any year; where the Authority has approved the resolution, the Executive Committee shall not collect fees for that year. Approval is therefore required for the waiver to take effect.
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