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

Under the Act, for a particular year the General Insurance Council passes a resolution waiving collection of the prescribed fees from general insurers. Which is correct about the effect of this waiver?

The waiver binds the Executive Committee only when the Authority has approved the Council's resolution. Under the proviso to section 64L(2), once approved, the Committee shall not collect any fees for that year. A resolution without the Authority's approval does not stop collection.

  1. AThe waiver is effective immediately once the Council passes the resolution
  2. BThe Executive Committee must not collect fees for that year only where the Authority has approved the resolutionCorrect
  3. CThe waiver takes effect only if the Central Government notifies it in the Gazette
  4. DThe waiver is effective only if two-thirds of insurers consent in writing

Explanation

The proviso to section 64L(2) lets the Council waive fees for any year by resolution, but the Executive Committee is barred from collecting fees only where the Authority has approved that resolution. Council resolution alone is not enough, and the Act does not require Central Government notification or insurer consent.

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