3. Incorporation of Institute.—(1) With effect from such date as the Central Government may, by
notification in the Official Gazette, appoint, all persons whose names are entered in the register of the
Actuarial Society at the commencement of this Act and all persons who may thereafter have their names
entered in the register to be maintained under this Act, so long as they continue to have their names borne
on the register, are hereby constituted a body corporate by the name of the Institute of Actuaries of India
and all such persons shall be known as members of the Institute.
(2) The Institute shall have perpetual succession and a common seal and shall have power to acquire,
hold and dispose of property, both movable and immovable, and shall by its name sue or be sued.
(3) The head office of the Institute shall be situated at such place as may be decided by the Central
Government.
4. Transfer of assets, liabilities, etc., of Actuarial Society.—On the appointed day,—
(a) all the assets and liabilities of the Actuarial Society shall stand transferred to, and vested in,
the Institute.
Explanation.—The assets of the Actuarial Society shall be deemed to include all rights and
powers and all properties, whether movable or immovable, including, in particular, cash balances,
deposits and all other interests and rights in, or arising out of, such properties as may be in the
possession of the said Society and all books of account and other documents relating to the same; and
liabilities shall be deemed to include all debts, liabilities and obligations of whatever kind;
(b) without prejudice to the provisions of clause (a), all debts, obligations and liabilities incurred,
all contracts entered into and all matters and things engaged to be done by, with or for the Actuarial
Society immediately before that day, for or in connection with the purpose of the said Society, shall
be deemed to have been incurred, entered into or engaged to be done by, with or for, the Institute;
(c) all sums of money due to the Actuarial Society immediately before that day shall be deemed
to be due to the Institute; and
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(d) all suits and other legal proceedings instituted or which could have been instituted by or
against the Actuarial Society immediately before that day may be continued or may be instituted by
or against the Institute.
5. Objects of Institute.—The objects of the Institute shall be—
(a) to promote, uphold and develop the standards of professional education, training, knowledge,
practice and conduct amongst Actuaries;
(b) to promote the status of the Actuarial profession;
(c) to regulate the practice by the members of the profession of Actuary;
(d) to promote, in the public interest, knowledge and research in all matters relevant to Actuarial
science and its application; and
(e) to do all such other things as may be incidental or conducive to the above objects or any of
them.
6. Entry of names in register.—(1) Any of the following persons shall be entitled to have his name
entered in the register, namely:—
(a) any person who immediately before the appointed day was an associate or a fellow (including
an honorary fellow) of the Actuarial Society;
(b) any person who has passed the examination conducted by the Actuarial Society and has
completed training either as specified by the said Society or as specified by the Council, except any
such person who is not a permanent resident of India;
(c) any person who has passed such examination and completed such training, as may be
specified for membership of the Institute;
(d) any person who has passed such other examination and completed such other training outside
India as is specified as being equivalent to the examination and training specified under this Act for
membership of the Institute:
Provided that in the case of any person belonging to any of the classes mentioned in this sub-section
who is not permanently residing in India, the Central Government or the Council may impose such further
conditions as it may deem necessary or expedient in the public interest.
(2) Every person mentioned in clause (a) of sub-section (1) may have his name entered in the register
without the payment of any entrance fee.
(3) Every person belonging to any of the classes mentioned in clauses (b), (c) and (d) of sub-section
(1) shall have his name entered in the register on an application being made and granted in the specified
manner and on payment of such fees, as may be specified.
(4) The Council shall take such steps as may be necessary for the purpose of having the names of all
persons belonging to the class mentioned in clause (a) of sub-section (1) entered in the register before the
appointed day.
(5) Notwithstanding anything contained in this section, the Council may confer on any person
honorary fellow membership, if the Council is of the opinion that such person has made a significant
contribution to the profession of Actuary and thereupon the Council shall enter the name of such person
in the register but such person shall not have any voting rights in any election or meetings of the Institute
and shall not also be required to pay any fee to the Institute.
7. Associates and fellows.—(1) The members of the Institute shall be divided into two classes
designated respectively as associates and fellows.
(2) Any person other than a person to whom the provisions of sub-section (3) apply, shall, on his
name being entered in the register, be deemed to have become an associate and as long as his name
remains so entered, shall be entitled to use the letters "AIAI" after his name to indicate that he is an
associate.
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(3) Any person who was a fellow of the Actuarial Society and who is entitled to have his name
entered in the register under clause (a) of sub-section (1) of section 6 shall be entered in the register as a
fellow.
(4) Any person whose name is entered in the register as fellow shall, so long as his name remains so
entered, be entitled to use the letters "FIAI" after his name to indicate that he is a fellow.
8. Honorary, affiliate and student members.—(1) The Council may choose, in such manner as may
be specified, any person of eminence in matters relating to and of interest to the profession of Actuary as
an honorary member of the Institute provided that he is not practicing as an Actuary.
(2) Any person, who is a fellow member, or is a holder of membership considered equivalent to the
fellow membership of the Institute, of any other institution similar to the Institute, whether within or
outside India, may be admitted as an affiliate member for such period, and on such terms and conditions
as may be specified.
(3) Any person who enrolls himself for examination of the Institute, and possesses such academic
qualifications as may be specified, may be admitted as a student member of the Institute on such terms
and conditions as may be specified.
(4) An honorary member or an affiliate member or a student member shall have no right to vote on
any matter or resolution in any meeting of the Institute.
9. Certificate of practice.—(1) No member of the Institute shall be entitled to practice unless he
fulfils the qualifications as may be specified and obtains from the Council a certificate of practice.
(2) A member who desires to be entitled to practice shall make an application in such form and pay
such annual fee for certificate of practice as may be specified and such fee shall be payable on or before
the first day of April in each year.
(3) The certificate of practice obtained under sub-section (1) may be cancelled by the Council under
such circumstances as may be specified.
10. Members to be known as Actuaries.—Every member of the Institute in practice shall, and any
other member may, use the designation of an Actuary and no member using such designation shall use
any other description whether in addition thereto or in substitution therefor:
Provided that nothing contained in this section shall be deemed to prohibit any such member from
adding any other description or letters to his name, if entitled thereto, to indicate membership of such
other Institute, whether in India or elsewhere, as may be recognised in this behalf by the Council, or any
other qualification that he may possess, or to prohibit a firm, all the partners of which are members of the
Institute and in practice, from being known by its firm name as Actuaries.
11. Disqualifications.—Notwithstanding anything contained in section 6, a person shall not be
entitled to have his name entered in, or borne on, the register if he—
(a) has not attained the age of twenty-one years at the time of his application for the entry of his
name in the register; or
(b) is of unsound mind and stands so adjudged by a competent court; or
(c) is an undischarged insolvent; or
(d) being a discharged insolvent, has not obtained from the court a certificate stating that his
insolvency was caused by misfortune and without any misconduct on his part; or
(e) has been convicted by a competent court whether within or outside India, of an offence
involving moral turpitude and punishable with imprisonment or of an offence, not of a technical
nature, committed by him in his professional capacity unless in respect of the offence committed he
has either been granted a pardon or, on an application made by him in this behalf, the Central
Government has, by an order in writing, removed the disqualification; or
(f) has been removed from the membership of the Institute on being found on inquiry to have
been guilty of a professional or other misconduct:
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Provided that a person who has been removed from the membership for a specified period shall not be
entitled to have his name entered in the Register until the expiry of such period.
12. Composition of Council of Institute.—(1)There shall be a Council of the Institute for the
management of the affairs of the Institute and for discharging the functions assigned to it by or under this
Act.
(2) The Council shall be composed of the following persons, namely:—
(a) a minimum of nine and not more than twelve persons from amongst fellow members to be
elected by the fellow and the associate members of the Institute in such manner as may be prescribed:
Provided that a fellow of the Institute, who has been found guilty of any professional or other
misconduct and whose name is removed from the Register or has been awarded penalty of fine, shall
not be eligible to contest election,—
(i) in case of misconduct falling under the Schedule of this Act [except Part IV(B)], for a
period of three years; or
(ii) in case of misconduct falling under Part IV(B) of the Schedule of this Act, for a period of
six years,
after the completion of the period of removal of name of the fellow from the Register or the payment
of fine is made, as the case may be; and
(b) (i) an officer not below the rank of Joint Secretary to the Government of India, to be
nominated by the Central Government to represent the Ministry of Finance;
(ii) one person from the Insurance Regulatory and Development Authority constituted under the
Insurance Regulatory and Development Authority Act, 1999 (41 of 1999) nominated by the Central
Government; and
(iii) not more than two persons having knowledge in the field of life insurance, general insurance,
finance, economics, law, accountancy or any other discipline which in the opinion of the Central
Government, would be useful to the Council, to be nominated in such manner as may be prescribed:
Provided that till such time as the Council is constituted under this Act, the Executive Committee of
the Actuarial Society shall discharge all the functions and shall have all the powers of the Council.
(3) No person holding a post under the Central Government or a State Government, as the case may
be, shall be eligible for election to the Council under clause (a) of sub-section (2).
(4) One-third of the members of the Council referred to in clause (a) of sub-section (2) shall retire as
soon as may be on the expiration of every second year by rotation but shall be eligible for re-election.
(5) Any person nominated under clause (b) of sub-section (2) shall hold office for a period of six
years from the date of his nomination unless he is removed earlier by the Central Government and shall
be eligible for re-nomination:
Provided that he shall be given an opportunity of being heard before such removal.
13. Annual general meetings.—The Council shall every year hold an annual general meeting of the
Institute to elect its members under clause (a) of sub-section (2) of section 12, or to discuss any matter
which it deems fit, and not more than fifteen months shall elapse between the date of one annual general
meeting of the Institute and that of the next:
Provided that from the appointed day the Institute may hold its first annual general meeting within a
period of not more than eighteen months and if such general meeting is held within that period, it shall
not be necessary for the Institute to hold any general meeting in that year:
Provided further that the Central Government may, for sufficient reasons, extend the time within
which any general meeting shall be held.
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14. Re-election to Council.—(1) Subject to the provisions of sub-section (2), a member of the
Council elected under clause (a) of sub- section (2) of section 12 shall be eligible for re-election but not
for more than two consecutive terms.
(2) A member of the Council, who is or has been elected, as the President under sub-section (1) of
section 17, shall not be eligible for election or nomination as a member of the Council.
15. Settlement of disputes regarding election.—In case of any dispute regarding any election under
clause (a) of sub-section (2) of section 12, the aggrieved person may make an application within thirty
days from the date of the declaration of the result of the election to the Council which shall forward the
same forthwith to the Central Government.
16. Establishment of Tribunal.—(1) On receipt of any application under section 15, the Central
Government shall, by notification, establish a Tribunal consisting of a Presiding Officer and two other
Members to decide such dispute and the decision of such Tribunal shall be final.
(2) A person shall not be qualified for appointment,—
(a) as a Presiding Officer of the Tribunal unless he has been a member of the Indian Legal
Service and has held a post in Grade I of the service for at least three years;
(b) as a Member unless he has been a member of the Council for at least one full term and who is
not a sitting Member of the Council or who has not been a candidate in the election under dispute;
and
(c) as a Member unless he holds the post of a Joint Secretary to the Government of India or any
other post under the Central Government carrying a scale of pay which is not less than that of a Joint
Secretary to the Government of India.
(3) The terms and conditions of service of the Presiding Officer and Members of the Tribunal, their
place of meetings, remuneration and allowances shall be such as may be prescribed.
(4) The expenses of the Tribunal shall be borne by the Council.
17. President, Vice-President and Honorary Secretary.—(1) The Council shall, at its first meeting,
elect three of its members from amongst persons referred to in clause (a) of sub-section (2) of section 12,
to be respectively the President, Vice-President and Honorary Secretary thereof, and as often as the office
of the President, Vice-President and Honorary Secretary falls vacant, the Council shall choose one of the
member in the same manner:
Provided that the Chairperson of the Council of the Actuarial Society shall continue to hold such
office as President after the commencement of this Act, until such time as a President is elected under the
provisions of this sub-section.
(2) The President shall be the Chief Executive Officer of the Council.
(3) The President, the Vice-President or the Honorary Secretary shall hold office for a period of two
years from the date on which he is chosen provided that he continues to be a member of the Council.
(4) The President and the Vice-President shall, notwithstanding the expiration of his term, continue to
hold office until his successor enters upon his office.
(5) In the event of occurrence of any vacancy in the office of the President, the Vice-President shall
act as the President until a new President is elected in accordance with the provisions of this section to fill
such vacancy and enters upon his office.
(6) When the President is unable to discharge his functions owing to absence, illness or any other
cause, the Vice-President shall discharge his functions until the President resumes his duties.
18. Resignation from membership and filling up of casual vacancies.—(1) Any member of the
Council may at any time resign his membership by writing under his hand addressed to the President, and
the seat of such member shall become vacant when such resignation is accepted and notified by the
Council.
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(2) A member of the Council, other than a member nominated under clause (b) of sub-section (2) of
section 12 shall be deemed to have vacated his seat if he is declared by the Council to have been absent
without sufficient reason from three consecutive meetings of the Council, or of any of the Committees
constituted by the Council, and of which he is a member or he has been found guilty of any professional
or other misconduct and awarded penalty of fine or if his name is, for any cause, removed from the
register under the provisions of sections 24 and 30.
(3) A casual vacancy in the office of a member of the Council shall be filled by fresh election or by
nomination by the Central Government, as the case may be, and the person elected or nominated to fill the
vacancy shall hold office only for the remainder of the term for which the member in whose place he was
elected or nominated would have held that office:
Provided that no election shall be held to fill a casual vacancy occurring within one year prior to the
date of the expiration of the term of such member.
(4) No act done by the Council shall be called in question on the ground merely of the existence of
any vacancy in, or defect in the constitution of the Council.
19. Functions of Council.—(1) The duty of carrying out the functions under the provisions of this
Act shall be vested in the Council.
(2) In particular and without prejudice to the generality of the foregoing power, the functions of the
Council shall include—
(a) the holding of examination of the candidates for enrolment and specifying fees therefor;
(b) the specifying of qualifications for entry in the register;
(c) the recognition of foreign qualifications and training for the purposes of enrolment;
(d) the granting of or refusal to grant the certificate of practice under this Act;
(e) the maintenance and publication of a register of persons qualified to practice as Actuaries;
(f) the levy and collection of fees from members, students, examinees and other persons;
(g) the removal of names from the register and the restoration to the register of names which have
been removed;
(h) the regulation and maintenance of the status and standard of professional qualifications of
members of the Institute;
(i) to issue guidelines for the observance of the members, including the student members;
(j) to receive gifts, grants, donations or benefactions from the Central or State Governments and
to receive bequests, donations and transfer of movable or immovable properties from testators, donors
or transferors, as the case may be;
(k) co-operating with educational or other institutions in any part of the world having objects
wholly or partly similar to those of the Institute by exchange of members and generally in such
manner as may be conducive to achievement of their common objects;
(l) instituting and awarding fellowships, scholarships, prizes and medals;
(m) giving gifts, grants, donations or benefactions to other institutions or bodies having objects
similar to those of the Institute;
(n) the carrying out, by granting financial assistance to persons other than members of the
Council, or in any other manner, of research in the actuarial science;
(o) the maintenance of a library and publication of books, journals and periodicals relating to
actuarial science;
(p) the exercise of disciplinary powers conferred by this Act;
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(q) establishing such regional council or councils as may be decided from time to time and fixing
their headquarters; and
(r) doing all such things as may be necessary, incidental or conducive to the attainment of all or
any of the objects of the Institute.
20. Staff, remuneration and allowances.—(1) For the efficient performance of its functions, the
Council may—
(a) appoint an Executive Director, a Treasurer and such other officers and employees as it deems
necessary and fix their salaries, fees, allowances and other conditions of service; and
(b) fix the allowances of the President, the Vice-President, the Honorary Secretary and other
members of the Council and its Committees, in such manner as may be specified.
(2) The Executive Director of the Council shall be entitled to participate in the meetings of the
Council but shall not be entitled to vote thereat.
21. Committees of Council.—(1) The Council may constitute such committees from amongst its
members, and co-opt therein persons who are not members of the Institute, as it deems necessary for the
purpose of carrying out the provisions of this Act:
Provided that the number of co-opted members shall not exceed one-third of the total membership of
the committee.
(2) Every committee constituted under this section shall elect its own Chairman:
Provided that—
(i) where the President is a member of such committee, he shall be the Chairman of such
committee, and in his absence, the Vice-President, if he is a member of such committee, shall be its
Chairman; and
(ii) where the President is not a member of such committee but the Vice-President is a member,
he shall be its Chairman.
(3) The committees shall exercise such functions and be subject to such conditions as may be
specified.
22. Finances of Council.—(1) There shall be established a fund under the management and control
of the Council into which shall be paid all moneys (including donations and grants) received by the
Council and out of which shall be met all expenses and liabilities incurred by the Council.
(2) The Council may invest any money for the time being standing to the credit of the fund in any
security as it may deem prudent consistent with the considerations of security of such investments and
maximum returns thereon.
Explanation.—For the purposes of this sub-section, the expression "securities" shall have the
meaning assigned to it in section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) as
amended from time to time.
(3) The Council shall keep proper accounts of the fund distinguishing capital account from revenue
account.
(4) The annual accounts of the Institute shall be subject to audit by a Chartered Accountant in practice
within the meaning of the Chartered Accountants Act, 1949 (38 of 1949) to be appointed annually by the
Council:
Provided that no member of the Council who is a Chartered Accountant or a person who is in
partnership with such member shall be eligible for appointment as an auditor under this sub-section.
(5) As soon as may be practicable at the end of each year, but not later than the 30th day of
September of the year next following, the Council shall cause to be published in the Gazette of India, a
copy of the audited accounts and the report of the Council for that year and copies of the said accounts
and report shall be forwarded to the Central Government and to all the members of the Institute.
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(6) The Council may borrow from a scheduled bank, as defined in the Reserve Bank of India Act,
1934 (2 of 1934) or from any public financial institution—
(a) any money required for meeting its liabilities on capital account on the security of the fund or
on the security of any other asset, for the time being belonging to it; or
(b) for the purpose of meeting current liabilities, pending the receipt of income, by way of
temporary loan or overdraft.
Explanation.—The expression "public financial institution" means a financial institution specified in
section 4A of the Companies Act, 1956 (1 of 1956).