back and in the context of issues which further got
thrown up among ourselves, I am not sure whether we
had taken into account all aspects affecting the actuarial
profession, while recommending the draft in 1997,"
background: In 1997, the professional body drafted a
model legislation for converting itself into a chartered
institute and sent it to the then Insurance Regulatory
Authority (IRA), which is now called the Insurance Regulatory
and Development Authority (IRDA).
September 2000, ASI received the government's draft
Bill for comments. As the draft didn't contain what
it had proposed, ASI in turn gave its views, again in
the form of a draft Bill.
March 2002, ASI convened a general body meeting enclosing
its September 2000 draft Bill to the notice convening
the meeting to pass the resolution enabling transfer
of assets and liabilities to the proposed IAI. At the
meeting the members were assured that their suggestions
will be incorporated in the government Bill and the
resolution for transfer of assets and liabilities was
the Actuaries Bill 2002 introduced in the parliament
in December 2002 did not contain ASI's recommendations.
Under pressure from some lobbies, the Bill was referred
to the standing committee on finance for further examination.
its part ASI constituted a four-member committee under
the chairmanship of K P Narasimhan, former chairman
of Life Insurance Corporation of India (LIC), to study
the Bill and make its recommendations. Today, the setting
up of IAI may not be a smooth affair if the Bill is
passed without incorporating the recommendations of
the Narasimhan Committee.
cause of contention is Section 2 of the Bill that allows
only individuals and partnership firms to undertake
actuarial practice. This is opposed by one section of
actuaries, and the Narasimhan committee favours corporates
and life insurers to carry on actuarial practice (See
'' and '').
the Bill is passed in its old form, we have a cause
to agitate in the court of law. The decision will be
taken by ASI's governing body,"
says Khan. "The resolution for the transfer of
assets and liabilities to IAI was based on the draft
it circulated along with the notice convening the meeting."
parliament is expected to pass the Actuaries Bill during
the current session.