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

Under the Insurance Act, 1938, which of the following is a statutory function of the Executive Committee of the General Insurance Council?

The Executive Committee of the General Insurance Council aids and advises general insurers on standards of conduct and sound practice and on efficient service to policyholders. It does not fix premium rates, register insurers or adjudicate claims; its role is advisory and reporting to the Authority.

  1. ATo fix the premium rates that every general insurer must charge on motor policies
  2. BTo aid and advise general insurers on standards of conduct and sound practice and on rendering efficient service to policyholdersCorrect
  3. CTo grant and cancel certificates of registration of general insurers
  4. DTo settle individual policyholder claims against insurers as an appellate forum

Explanation

Section 64L(1)(a) says the Executive Committee aids and advises insurers carrying on general insurance business on setting up standards of conduct and sound practice and on efficient service to holders of general insurance policies. Fixing premium rates, registering insurers and deciding claims are not listed functions; the Committee only advises the Authority on controlling expenses and can bring prejudicial conduct to its notice.

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