Let staff of firms act as actuaries: Panel

The standing committee on finance has said that employees of companies should be allowed to act as actuaries in practice.

This would be in tune with other enactments regulating professional bodies like the ICAI and ICWI and would also ensure fixing of unlimited liability on the actuary in practice in his individual capacity.

In its report on the Actuaries Bill, 2002, the committee has said that Clause 2(2) of the Bill should be amended accordingly.

While noting that the government is not in favour of allowing the entry of corporates into actuarial practice, it has noted that the objections, which are mainly on account of a preference for a system of unlimited liability to be carried by individual actuaries and the inability of Institute of Actuaries of India to fix responsibility in case of misconduct, would be addressed by allowing employees of companies to act as actuaries in practice.

The committee has also suggested that the word 'Actuary' be defined in the proposed Act, instead of leaving it to be defined by the Insurance Regulatory and Development Authority (IRDA) regulations.

"Actuaries have a multidisciplinary role beyond the area of insurance. They have equally important role in areas such as employees benefit, information technology, taxation, risk management and investments," the committee's 54th report states.

Given this, it is imperative that actuaries should be defined in a wider context.

The Actuaries Bill, 2002 was introduced in the Lok Sabha on 16 December 2002 and referred to the committee for examination.

The Bill envisages the establishment of a professional body, Institute of Actuaries of India which will be self financing and will maintain a register of actuaries for their members.