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IAI Actuarial Core Principles · Business Management · Actuaries Act, 2006 and IAI governance

Vikram, a member of the Institute, is the subject of a disciplinary inquiry. Which principle of natural justice must the disciplinary process follow before any penalty is imposed on him?

The member must be given a reasonable opportunity to be heard and to answer the allegations, before an unbiased decision-maker. Penalising without informing him of the charges, or letting the complainant decide, would violate natural justice.

  1. AHe must be given a reasonable opportunity to be heard and to respond to the allegationsCorrect
  2. BHe may be penalised without being told the charges to protect the complainant
  3. CThe decision-maker must be the complainant himself
  4. DThe inquiry must be held in secret without any record
  5. He loses the right to appeal once a complaint is filed

Explanation

Natural justice requires fair hearing: the member must know the allegations and have a reasonable chance to respond, and the decision-maker must be unbiased. The other options contradict these basic requirements.

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