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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's bye-laws require insurers to submit certain statements to its Executive Committee. Dhruv Insurance, a member, files them but not copies to the Authority. Under Section 64R(1)(d)(iii), which is correct?

The bye-laws can require insurers to send copies of the statements to the Authority in addition to the Executive Committee. Section 64R(1)(d)(iii) covers both submissions, so Dhruv's failure to send copies to the Authority is a compliance lapse.

  1. AThe bye-laws may require insurers to submit copies of such statements to the Authority as wellCorrect
  2. BCopies go to the Authority only if the Central Government directs
  3. COnly the Executive Committee needs the statements, never the Authority
  4. DBye-laws may not cover submission of statements, only fees

Explanation

Section 64R(1)(d)(iii) empowers the Council to make bye-laws for submission by insurers to the Executive Committee of required statements or information, and for submission of copies by insurers to the Authority. So Dhruv's omission of copies breaches the bye-law requirement. Fees are covered separately in (iv).

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