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

To meet its costs of discharging functions, the Executive Committee of the General Insurance Council collects fees from member insurers. Which statement is correct under section 64L?

Fees are collected according to the Council's bye-laws, and the Council may waive them for a year by resolution. Once the Authority approves that resolution, the Executive Committee collects no fees for that year, as provided in section 64L(2) and its proviso.

  1. AFees are collected as laid down in the bye-laws made by the Council, and the Council may by resolution waive collection for a year, which takes effect once the Authority approves the resolutionCorrect
  2. BFees are fixed by the Central Government annually
  3. CFees can never be waived
  4. DWaiver takes effect on the Council's resolution alone

Explanation

Section 64L(2) lets the Committee collect fees as laid down in the Council's bye-laws. The proviso allows a Council resolution waiving fees for a year, and once the Authority approves it, the Committee collects no fees for that year. Approval is therefore needed, so a resolution alone is insufficient.

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