The simple meaning of the word “Actuary “is analyzing. Actuary exactly relates or associates in the field of financial transactions. The financial transactions cover vast areas including insurance policies or monetary claim etc. A professional proficient who analyses the risk factors, profit and loss and other account related matters in an insurance company is an actuary. The dawn of insurance companies created a new trend in the economic sector of the country. Insurance companies with government authorization gained credibility of the public that resulted in the huge number of insurance policy holders across the country. Along with the increase in the number of policy holders the chances for committing fraud for getting the policy claim became a great threat to the reputed companies. In order to have a control over this condition, after lot of negotiation in 2006 Actuaries act was enacted as per the notification from the central Government on 27 august 2006. The act extends to the whole of India in nine chapters with 59 sections.
The act mainly aims at the benefit of the actuaries in an insurance company. The upliftment of actuaries in a professional status is another objective of the act. The act permits the setting up of institute of actuaries. The members of the actuaries’ society have all powers conferred by the act. The transfer of assets and liabilities which is a main factor in the functioning of the society is powered by the section 4 of the act and the objectives of the society are clearly stated in section 5 of the act. These two sections are vital part of the act as it specifies the nature of an actuarial institute. Section 16 of the act, deals with the power of putting up of special tribunal for settling the disputes in the institute of actuaries. The institutes of actuaries are bound by the decision or the finding of the tribunal. The decision will be final and absolute. The expense of the tribunal is carried out by the council. The function of the council in accordance with the act is specified in section 19 of the act. The disciplinary action committee can be formed by the virtue of section 26. Section 29 deals with the action to be taken on the basis of the report of the disciplinary committee on the misconduct of the members. Section 32 deals with the appellate authority on how an appeal can be preferred. Section 37 deals with the penalties. Section 48 deals with the dissolution of the actuarial society. Section 50 onwards deals with the miscellaneous provisions.
The actuaries act is definitely a great aid to the economic sector of the country. The rules in the act improve the status of an actuary in an institution. The risk factor in the monetary management in the institution will be controlled by the provisions of the act , which will make the transactions lawful. The benefits of the members are given prime concern in the objectives of the act and at the same time the professional misconduct from the members are also subject to the provisions of the act. The act confers legal entity to the actural institutions.
The act gives privileges to the members to have practice in an actuarial society which in turn gives promotion to public interest to know about the actuarial science and its application. Today the importance of this act is very relevant as the profession of an actuary is upgraded with legal validity. The actuaries act provides the rights, liability and duties of an actuary and other related members of the actuarial society.