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

While constituting the Executive Committee of the General Insurance Council, the members of the Council fail to elect one of the four representatives of members. What does the Insurance Act, 1938 provide?

If the members fail to elect a representative to the Executive Committee, the Authority may nominate a person to fill the vacancy. The nominee is treated as a duly elected member, so the seat need not remain vacant.

  1. AThe seat stays vacant until the next election
  2. BThe Central Government fills the seat by nomination
  3. CThe Authority may nominate a person to fill the vacancy, who is deemed to be a duly elected memberCorrect
  4. DThe Chairperson of the Committee co-opts a person

Explanation

Section 64F(3) states that if a body of persons fails to elect any member of the Executive Committee, the Authority may nominate a person to fill the vacancy. That person is deemed to be a member as if duly elected. The Central Government and the Chairperson have no such power under this provision.

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