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

Under the Insurance Act, 1938, the General Insurance Council resolves to waive collection of the prescribed fees for a year, and the Authority approves the resolution. What is the effect?

Once the Authority approves the Council's resolution waiving fees for a year, the Executive Committee must not collect any fees for that year. The waiver is specific to that year and does not allow partial collection or a standing exemption for future years.

  1. AThe Executive Committee shall not collect any fees in relation to that yearCorrect
  2. BThe Executive Committee may still collect half the fees
  3. CThe Executive Committee collects the fees but refunds them next year
  4. DThe waiver applies to all future years until revoked

Explanation

The proviso to Section 64L(2) lets the Council waive fees for any year by resolution. Where the Authority has approved the resolution, the Executive Committee shall not collect any fees for that year. The waiver is year-specific, so a permanent waiver is wrong, and there is no partial collection.

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