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

Under Section 64L, the Executive Committee of the General Insurance Council receives a complaint that a general insurer is acting in a manner prejudicial to policyholders' interests. What is the Committee's function?

The Executive Committee of the General Insurance Council should bring the case of the insurer acting prejudicially to policyholders' interests to the notice of the Authority. It only aids, advises and reports; it cannot cancel registration or penalise.

  1. ACancel the insurer's registration
  2. BImpose a monetary penalty on the insurer
  3. CBring the case of the insurer to the notice of the AuthorityCorrect
  4. DOrder the insurer to modify its reinsurance treaties

Explanation

Section 64L(1)(c) makes it a function of the Executive Committee to bring to the Authority's notice any general insurer acting prejudicially to the interests of policyholders. It has no power to cancel registration, penalise, or direct changes to reinsurance treaties; those lie with the Authority.

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