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64K. Executive Committee of Life Insurance Council may advise in controlling expenses.-

(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 1[Authority] in fixing under the proviso to sub-section (2) of section 40B 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 1[Authority] shall have due regard to the conditions obtaining in life insurance business generally during that year, and he may fix 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 1[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 hi m, the 1[Authority] may cause an investigation and valuation, as at such date as the 1[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 1[Authority], and the insurer shall place at the disposal of the said actuary all the materials required by hi m for the purpose of such investigation and valuation, within such period, not being less than three months, as the 1[Authority] may specify.

(4) The provisions of sub-sections (1) and (4) of section 13 and of sub-sections (1) and (2) of section 15, or, as the case may be, of sub-section (2) of section 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 1[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 1[Authority] may take such action as may be prescribed.

1. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000).

2. Subs. by s. 30 and The First Schedule, ibid., for "Central Government" (w.e.f. 19-4-2000).

3. Subs. by Act 5 of 2015, s. 75, for sub-section (2) (w.e.f. 26-12-2014).

Insurance Act, 1938 Back

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