Incorporation of the Insurance Association of India
64A. (1) All insurers carrying on insurance business in India at the commencement of the Insurance (Amendment) Act, 1950 (47 of 1950), all insurers who may after such
commencement begin to carry on insurance business in India, and, if the Central Government, by notification in the official Gazette, so declares all provident societies carrying on insurance business in India on the date of such notification and all provident societies which may begin to carry on insurance business in India after such date are hereby constituted a body corporate by the name of the Insurance Association of India.
(2) All insurers and provident societies incorporated or domiciled in India shall be known as members of the Insurance Association of India, and all insurers and provident societies incorporated or domiciled elsewhere than in India shall be known as associate members of that Association.¬
(3) The Insurance Association of India shall have perpetual succession and a common seal and shall have power to acquire, hold and dispose of all property both moveable, and immoveable and shall by the said name sue and be sued.
Entry of names of members in the register
64B. (1) The Authority shall take or cause to be taken through such agency as he thinks fit such steps as may be necessary to have the names of all insurers and provident societies, who or which are entitled to have their names entered in the register of members and associate members of the Insurance Association of India maintained for this purpose entered therein.
(2) Where any insurer or provident society has ceased to carry on business as such the Authority shall cause such steps to be taken as may be necessary to have the name of such insurer or provident society, as the case may be, removed from the register.
Councils of the Insurance Association of India
64C. There shall be two Councils of the Insurance Association of India, namely:
(a) the Life Insurance Council consisting of all the members and associate members of the Association, who carry on life insurance business in India, and
(b) the General Insurance Council consisting of all the members and associate members of the Association who carry on general insurance business in India.
Authority of members of Association to act through agents
64D. It shall be lawful for any member of the Life Insurance Council or the General Insurance Council to authorise any individual, whether an officer of the insurer or not, to act as the representative of such member at any meeting of the Council concerns or to stand as a candidate for any election held by that Council.
Authorities of the Life Insurance Council and the General Insurance Council
64E. The authorities of the Life Insurance Council and the General Insurance Council shall be the Executive Committees constituted in the manner provided in this Part.
Executive Committees of the Life Insurance Council and the General Insurance Council
64F.1) The Executive Committee of the Life Insurance Council shall consist of the following persons, namely:
(a) two officials nominated by the Authority, one as the Chairman and the other as a member;
(b) eight representatives of members of the Insurance Association of India carrying on life insurance business elected in their individual capacity by the said members in such manner, from such groups of members and from such areas as may be specified by the Authority.
(c) one official not connected with any insurance business, nominated by the Authority and
(d) five persons connected with life insurance business, nominated by the Authority for the purpose of representing such groups of insurers carrying on life insurance business or such areas as have not been able to secure adequate representation on the Executive Committee of the Life Insurance Council or for any other purpose.
(2) The Executive Committee of the General Insurance Council shall consist of the following persons, namely:
(a) two officials nominated by the Authority, one as the Chairman and the other as a member;
(b) eight representatives of members of the Insurance Association of India carrying on general insurance business elected in their individual capacity by the said members in such manner, from such groups of members and from such areas as may be specified by the Authority
© one non official not connected with any insurance business, nominated by the Authority and
(d) five persons connected with general insurance business, nominated by the Authority for the purpose of representing such groups of insurers carrying on general insurance business or such areas as have not been able to secure adequate representation on the Executive Committee of the General Insurance Council or for any other purpose.
(3) If any body of persons specified in sub sections (1) and (2) fails to elect any of the members of the Executive Committees of the Life Insurance Council or the General Insurance Council, the Authority may nominate any person to fill the vacancy, and any person so nominated shall be deemed to be a member of the Executive Committee of the Life Insurance Council or the General Insurance Council, as the case may be, as if he had been duly elected thereto.
(4) No official nominated by the Authority shall be entitled, whether as chairman or as a member, to vote in respect of any matter coming up before any meeting of the Executive Committee of the Life Insurance Council or the Executive Committee of the General Insurance Council, as the case may be, and subject thereto each of the said Executive Committees may, with the approval of the Authority, make bye laws for the transaction of any business at any meeting of the said Committee, and any such bye law may provide that any member of the Committee who is interested in any matter for the time being before that Committee may not be present at or take part in any meeting thereof.
(5) The life insurance Council or the General Insurance Council may form such other committees consisting of such persons as it may think fit to discharge such functions as may be delegated thereto:
Provided that any action taken by any of the said Council under this sub¬section shall be with the previous consent of the Authority and nothing in this sub section shall derogate from any of the powers vested in the Executive Committees.
(6) The Secretary of the Executive Committee of the Life Insurance Council and of the Executive Committee of the General Insurance Council shall in each case be an official nominated by the Authority.
Resignation and filling up of casual vacancies
64G. (1) Any member of the Executive Committee of the Life Insurance Council or of the General Insurance Council may resign his membership of the Committee by notice in writing addressed to the Chairman of the Committee to that effect.
(2) Casual vacancies in the Executive Committee of the Life Insurance Council or of the General Insurance Council, whether caused by resignation, death or otherwise, shall be filled by nomination by the Authority, and any person so nominated to fill the vacancy shall hold office until the dissolution of the Committee to which he has been nominated.
(3) No act of the Executive Committee of the Life Insurance Council or of the General Insurance Council shall be called in question on the ground merely of the existence of any vacancy in, or defect in the constitution of, the Committee concerned.
Duration and dissolution of Executive Committees
64H. (l) The duration of the Executive Committee of the Life Insurance Council or the General Insurance Council shall be three years from the date of its first meeting on the expiry of which it shall stand dissolved and a new Executive Committee constituted.
(2)Notwithstanding the dissolution of the Executive Committee of the Life Insurance Council or the General Insurance Council, the out going members thereof shall continue to hold office and discharge such administrative and other duties as may be prescribed until such time as a new Executive Committee of the Life Insurance Council or the General Insurance Council, as the case may be, shall have been constituted.
Power of Executive Committee of Life Insurance Council to hold examinations for Insurance agents
64-I The Life Insurance Council may, with the approval of the Authority authorise its Executive Committee to hold examinations for individuals wishing to qualify themselves as insurance agents for the purpose of procuring life insurance business, and if the Authority, by notification in the official Gazette, so declares, then, not withstanding anything contained in Sec. 42, only individuals who have passed any such examination shall be eligible to apply for a 1icence under Section 42:
Provided that nothing in this sub section shall affect the right of any individual, who has been licensed to act as an insurance agent under Section 42 before the date of such notification, to act as such, or to have his 1icence renewed from time to time
Functions of Executive Committee of Life Insurance Council
64J. (1) The functions of the Executive Committee of the Life Insurance Council shall be
(a) to aid, advise and assist insurers carrying on life insurance business in the matter of setting up standards of conduct and sound practice and in the matter of rendering efficient service to holders of life insurance policies;
(b) to render advice to the Authority in the matter of controlling the expenses of insurers in respect of their life insurance business in India;
(c) to bring to the notice of the Authority the case of any insurer acting in a manner prejudicial to the interests of holders of life insurance policies;
(d) to act in any matter incidental or ancillary to any of the matters specified in Clauses (a) to (c) as, with the approval of the Authority, may be notified by the Life Insurance Council in the Gazette of India.
(2) For the purpose of enabling it effectively to discharge its functions, ¬the Executive Committee of the Life Insurance Council may collect such sums of money, whether by way of fees or otherwise, as may be prescribed from all members and associate members of the Insurance Association of India who carry on life insurance business.
Executive Committee of Life Insurance Council may advise in controlling expenses
64K. (1)It shall be the duty of the Executive Committee of the Life Insurance Council to meet at least once before the 31st day of March every year to advise the Authority in fixing under the proviso to sub section (2) of Section 40 B the limits by which the actual expenses incurred by an insurer carrying on life insurance business in respect of such business in the preceding year may exceed the limits prescribed under that sub section, and in fixing any such limits the Authority shall have due regard to the conditions obtaining in life insurance business generally during that year and he may fix different limits for different groups of insurers.
(2) Where an insurer is guilty of contravening the provisions of Section 40B with respect to the expenses of management, the Authority may, after giving the insurer an opportunity of being heard, administer a warning to the insurer.
(3) Where within a period of seven years two warnings have been given to an insurer under sub section (2) and they have been disregarded by him, the Authority may cause an investigation and valuation, as at such date as the Authority may specify, to be made at the expense of the insurer by an actuary appointed by the insurer for this purpose and approved by the Authority, and the insurer shall place at the disposal of the said actuary all the materials required by him for the purpose of such investigation and valuation, within such period, not being less than three months, as the Authority may specify.
(4) The provisions of sub sections (1) and (4) of Section 13 and sub sections (1) and (2) of Section 15, or, as the case may be, of sub section (2) of Sec. 16 shall apply in relation to an investigation and valuation under this section:
Provided that the abstract and statement prepared as the result of such investigation and valuation shall be furnished by such date as the Authority may specify.
(5) There shall be appended to every such abstract a statement signed by the actuary giving such information as may be prescribed.
(6) On receipt of the abstract and statement furnished in accordance with sub section (4), the Authority may take such action as may be prescribed.
Functions of the Executive Committee of General Insurance Council
64L (1) The functions of the Executive Committee of the General Insurance Council shall be
(a) to aid and advise insurers, carrying on general insurance business, in the matter of setting up standards of conduct and sound practice and in the matter of rendering efficient service to holders of policies of general insurance;
(b) to render advice to the Authority in the matter of controlling the expenses of such insurers carrying on business in India in the matter of commission and other expenses;
(c) to bring to the notice of the Authority the case of any such insurer acting in a manner prejudicial the interests of holders of general insurance po1icies;
(d) to act in any matter incidental or ancillary to any of the matters specified in Clauses (a) to (c)
as with the approval of the Authority may be notified by the General Insurance Council in the Gazette of India.
(2) For the purpose of enabling it effectively to discharge its functions, the Executive Committee of the General Insurance Council may collect such fees as may be prescribed from all insurers carrying on general insurance business:
Provided that if the General Insurance Council thinks fit, it may by a resolution passed by it, waive the collection of the prescribed fees for any year and where any such resolution has been approved by the Authority, the Executive Committee of the General Insurance Council shall not collect any fees in relation to that year.
Executive Committee of the General Insurance Council may advise in controlling expenses.
64M. (1) It shall be the duty of the Executive Committee of the General Insurance Council to meet at least once before the 31st day of March every year to advise the Authority in fixing under the proviso to subsection (1) of Section 40 C the limits by which the actual expenses of management incurred by an insurer carrying on general insurance business in respect of such business in the preceding year may exceed the limits prescribed under that sub section, and in the fixing any such limits the Authority shall have due regard to the conditions obtaining in general insurance business in the preceding year, and he may fix different limits for different groups of insurers.
(2) Where an insurer is guilty of contravening the provisions of Section 40C with respect to the expenses of management the Authority may, after giving the insurer an opportunity of being heard, administer a warning to the insurer.
(3) Where in any case two warnings given to an insurer under sub section (2) have been disregarded by him, the Authority may take such action against the insurer as may be prescribed.
Powers of Executive Committees to act together in certain cases
64N. The Central Government may prescribe the circumstances in which, the manner in which, and the conditions subject to which, the Executive committee of the Life Insurance Council and the Executive Committee of the General Insurance Council may hold joint meetings for the purpose of doing with any matter of common interest to both Committee, and it shall be lawful for the two Committees at any such joint meeting to delegate any matter under consideration for the determination of a sub committee appointed for this purpose from amongst the members of the two Committees.
General powers of Life Insurance Council and General Insurance Council
64R (1) For the efficient performance of its duties, the Life Insurance Council or the General Insurance Council, as the case may be, may¬
(a) appoint such officers and servants as may be necessary and fix the conditions of their service;
(b) determine the manner in which any prescribed fee may be collected;
(c) keep and maintain up to date a copy of the list of all insurers who are members or associate members of the Insurance Association of India;
(d) with the previous approval of the Authority, make regulations for¬
(i) the holding of elections other than the first elections;
(ii) the summoning and holding of meetings, the conduct of business thereat and the number of persons necessary to form a quorum;
(iii) the submission by insurers to the Executive Committee of the Life Insurance Council, or the General Insurance Council of such statements or information as may be required of them and the submission of copies thereof by the insurers to the Authority;
(iv) the levy and collection of any fees;
(v) the regulation of any other matter which may be necessary for the purpose of enabling it to carry out its duties under this Act.
(2) The Life Insurance Council or the General Insurance Council may authorise the Executive Committee concerned to exercise any of the powers conferred on the Life Insurance Council or the General Insurance Council, as the case may be, under C1ause (a), C1ause (b) or C1ause (c) of sub section (1).
Power of Central Government to remove difficulties
64S. The Central Government may exercise such powers as may be necessary for bringing the Life Insurance Council, the General Insurance Council or the Executive Committee of any of the said Councils, as the case may be, into effective existence for the purposes of this Part, and any such powers shall include
(a) the power to hold, in such manner as may be directed by the Central Government, the first elections to the Executive Committees of the Life Insurance Council and the General Insurance Council;
(b) where a notification under sub section (1) of Section 64A has been issued declaring provident societies to be members of the Insurance Association of India, the powers to associate provident societies effectively in the exercise of all powers and the discharge of all functions of the Life Insurance Council and the Executive Committee thereof;
(c) the power to make the provisions of Section 40B applicable to the provident societies specified in Clause (b) in the same manner as they apply to insurers.
Power to exempt
64T. The Central Government may, subject to such conditions and restrictions as it may think fit to impose, exempt any insurer specified in sub clause (c) of C1ause (9) of Section 2 from the operation of all or any of the provisions of this Part.
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