64M. Executive Committee of General Insurance Council may advise in controlling expenses.-
(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 1[Authority] in fixing under the proviso to sub-section (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 fixing any such limits the 1[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 1[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 hi m, the 1[Authority] may take such action against the insurer 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 ibid., s. 30 and the First Schedule (serial no. 2), for "Central Government (w.e.f. 19-4-2000).
3. Subs. by Act 5 of 2015, s. 76, for sub-section (2) (w.e.f. 26-12-2014).
4. Ins. by Act 62 of 1968, s. 26 (w.e.f. 1-8-1939).