The Hindu : Business : Actuaries Bill gets LS nod

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Thursday, Aug 03, 2006

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Actuaries Bill gets LS nod

The definition of actuaries expanded and made more comprehensive

NEW DELHI: A bill to regulate and develop the profession of actuaries was passed by the Lok Sabha on Wednesday.

The Actuaries Bill, 2005, saw the Government introduce a number of amendments to the original proposal following suggestions from the Standing Committee on Finance.

These were accepted by the House which passed the bill by a voice vote. The Bill seeks the establishment of an Institute of Actuaries as the regulator for the profession.

The legislation, inter alia, makes provision for an Appellate Authority, a Tribunal and a Quality Review Board.

Replying to a brief debate on the Bill, Minister of State for Finance P. K. Bansal said through the amendments, the Government had expanded the definition of actuaries and made it more comprehensive. Besides, the Government had attempted to increase the level of fines and punishment terms for misconduct by members through new amendments, he said.

Mr. Bansal justified provisions that give Government the power to direct the Institute's Council to make, amend or revoke regulations.

Traditional responsibilities of actuaries in life and general insurance business included designing and pricing of policies, monitoring the adequacy of funds to provide promised benefits, recommending fair rate of bonus where applicable, valuation of the insurance business and ensuring solvency margins, the Minister said. — PTI

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