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CMA Final · Risk Management in Banking and Insurance · General Insurance

Under the Insurance Act, 1938, the Executive Committee of the General Insurance Council may collect fees from general insurers as laid down in the Council's bye-laws. What does the Act provide about waiver of these fees?

The General Insurance Council may pass a resolution waiving the prescribed fees for any year. Once the Authority approves that resolution, the Executive Committee of the Council must not collect any fees for that year. The Committee alone cannot waive them.

  1. AThe Executive Committee alone may waive fees at any time without approval
  2. BThe Authority may waive fees on its own without any Council resolution
  3. CFees can never be waived
  4. DThe General Insurance Council may by resolution waive fees for a year, and if the Authority approves, the Committee shall not collect fees for that yearCorrect

Explanation

The proviso allows the Council, by resolution, to waive the prescribed fees for any year. Where the Authority has approved the resolution, the Executive Committee cannot collect fees for that year. Waiver needs both the resolution and the approval.

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