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Role of Actuaries act, 2006 – An Overview

The Actuaries Act, 2006 was enacted on August 27, 2006 to control and advance the actuaries profession and other issues related with the actuaries. As provided under the Act actuary is the person engaged in deciding the current results of the potential contingent happenings or in the molding of finance and determining of risk in various locations of insurance or computing the rate of life interest and possibilities in insurance etc. It shall also deal with formulation and fixing of rates for policies, calculating the profits, suggesting rates that are concerned with insurance industry, allowances, insurance and rates of pension according to the empirically related tables. It shall also consist of such other persons as specifically provided under the Act. By virtue of the Act, from the date specified by the Government of India, the name of the persons included in the record of the actuarial society during the initiation of the Act and the names of the persons added subsequent to the pioneering of the legislation and till their name persist to be present in the record are established as a body corporate under the Actuaries Institute and the names of the persons included in the record shall be members under the Actuaries Institute. The Institute shall have the status of a company with continuous succession and shall have the authority to deal with property and shall have the power to litigate.

From the commencement of the Act, the properties and obligations of the Actuarial Society shall be assigned and shall be under the control of the Actuaries Institute. The properties and the obligations shall consist of the privileges and authorities added with cash deposits, account books, records, obligations, balances due, properties vested with the society etc. The obligations and balances due that are outstanding, the agreements concluded and the things that are to be performed by the Actuarial Society shall also be assigned to the Actuaries Institute. The litigations in which the society is engaged are also transferred to the Institute. In addition, the fundamental motive of the Institute shall consist of the advancement, support and progression of professional learning, practical experience through training, awareness and activities between the actuaries, uplift the status of actuaries, control the activities of the persons engaged in the actuary’s profession, to advance research and development on the subjects that are important to actuarial science etc. The persons whose name is entered as an associate or fellow shall have his name included in the records of the Institute. To be a member of the Institute, the person must have passed the assessment conducted by the Society of Actuary. He shall also conclude the training as per the guidelines of the Society or by the Council with some exemptions.

The persons under the Actuaries Institute shall be separated into two categories who are assigned the post of associate or fellows. The name of the person included in the records of the Institute shall be designated as associate and shall be eligible to add AIAI subsequent to the name of the member. The Act empowers the Council to select any eminent person for the issues connected with and for the benefit of Actuary’s profession like that of member given honorarium of the Actuary’s Institute but such person so chosen shall not be functioning as an actuary. A person shall be qualified to be a member of the Institute if he complies with the qualifications provided by the Institute and gets the Certificate to prove his practice from the Council. The person who wishes to conduct his practice as an actuary shall apply in the specific format along with prescribed fee. The Act provides for the establishment of Council of the Institute for the administration of the activities and to perform the activities of the Institute. The Central Government shall also establish a Tribunal to decide on the disputes after receiving application in this respect. A Quality Review Board shall also be constituted by the Central Government. The Central Government is entrusted to frame rules for the proper implementation of the provisions of the Act.