CHAPTER IV

DUTIES, POWERS AND FUNCTIONS OF AUTHORITY

14. Duties, powers and functions of Authority

(1) Subject to the provisions of this Act and any other law for the time being in force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business.

(2) Without prejudice to the generality of the provisions contained in sub-section (1), the powers and functions of the Authority shall include,--

(a)        issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration;

(b)        protection of the interests of the policy-holders in matters concerning assigning of policy, nomination by policy-holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance;

(c)        specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents;

(d)        specifying the code of conduct for surveyors and loss assessors;

(e)        promoting efficiency in the conduct of insurance business;

(f)         promoting and regulating professional organisations connected with the insurance and re-insurance business;

(g)        levying fees and other charges for carrying out the purposes of this Act;

(h)        calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organisations connected with the insurance business;

(i)         control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938;

(j)         specifying the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries;

(k)        regulating investment of funds by insurance companies;

(l)         regulating maintenance of margin of solvency;

(m)       adjudication of disputes between insurers and intermediaries of insurance intermediaries;

(n)        supervising the functioning of the Tariff Advisory Committee;

(o)        specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organisations referred to in clause (f);

(p)        specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector; and

(q)        exercising such other powers as may be prescribed.

COMMENTS

Sec. 64U of the Insurance Act, 1938 providing for the establishment of Tariff Advisory Committee with effect from the commencement of the Insurance (Amendment) Act, 1968 was to control and regulate the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business.  The Advisory Committee is a body corporate having perpetual succession and a common seal, with power, subject to the provisions of that Act, to acquire, hold and dispose of property, both movable and immovable, and to contract and may, by the said name, sue and be sued.

Sec. 64UA of the Insurance Act, 1938 provides for the composition of the Advisory Committee.  Under that section, the Advisory Committee shall consist of the following members, namely,--

(a)        a Controller of Insurance, ex officio, who shall be the Chairman;

(b)        a senior officer of the office of the Controller nominated by the Controller nominated by the Controller, who shall be the Vice-Chairman;

(c)        not more than ten representatives of Indian insurers, elected (in their individual capacities) by such insurers in such manner, from such areas and from among such insurer or groups of insurers as may be prescribed;

(d)        not more than four representatives of insurers incorporated or domiciled elsewhere than in India but registered in India, elected (in their individual capacities) by such insurers in such manner, and from among such insurers or groups of insurers as may be prescribed.

The Secretary to the Advisory Committee shall be an officer of the office of the Controller, nominated by the Controller.