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Union of India - Section
Section 227 in The Actuaries Act, 2006
227.
Statement of Objects and Reasons.-The insurance sector has already been opened to private sector with the enactment of the Insurance Regulatory and Development Authority Act, 1999. In addition to the six nationalised insurance companies, which were transacting insurance business, twenty-one private sector companies have started transacting insurance business in the country.2. Traditional responsibilities of Actuaries in life and general insurance business include designing and pricing of policies, monitoring the adequacy of the funds to provide the promised benefits, recommending fair rate of bonus where applicable, valuation of the insurance business, ensuring solvency margin and other insurance risks like legal liability, loss of profit, etc. They also define the risk factors, advise on the premia to be charged and re-insurance to be purchased, calculate reserve for outstanding claims and carry out financial modelling. An Actuary works as consultant either individually or in partnership with other Actuaries in multi-disciplines like insurance, information technology, taxation, employees benefit, risk management, investment, etc. Evidently, the scope of the functions and duties of an Actuary has increased considerably under the changed conditions.3. At present, the Actuarial Society of India, which is registered under the Societies Registration Act, 1860 and the Bombay Public Trust Act, 1950 manages the affairs of the Actuarial profession in India. It is proposed to regulate the profession of Actuaries through an enactment on the same lines as the professions of Chartered Accountants, Cost and Works Accountants and Company Secretaries are regulated under the Chartered Accountants Act, 1949, the Cost and Works Accountants Act, 1959 and the Company Secretaries Act, 1980, respectively.4. The Institute of Actuaries of India, to be constituted under the proposed Bill will have the responsibility for conducting examinations for the profession of Actuaries, regulating the profession including professional misconduct, and creating necessary facilities for the growth and training of the Members of the profession. It is also proposed to dissolve the Actuarial Society of India and transfer the assets and liabilities of the said Society to the proposed Institute of Actuaries of India. The Bill, inter alia, makes provision for an Appellate Authority, a Tribunal, a Quality Review Board, etc., for the purposes of the Bill.5. The Bill seeks to achieve the above objects.[27th August, 2006]An Act to provide for regulating and developing the profession of Actuaries and for matters connected therewith or incidental thereto.Be it enacted by Parliament in the Fifty-seventh Year of the Republic of India as follows:-| Received the assent of the President on 27.8.2006 and published in the Gazette of India, Extraordinary, Part II, Section 1, dated 28.8.2006, pp. 1-20, Sl. No. 41.Brought into force on 10.11.2006 vide S.O. 1912(E), dated 8.11.2006. |