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© Taxmann Price : ` 325 Law stated in this book is as updated till 1st December, 2025 Published by : Taxmann Publications (P.) Ltd. Sales & Marketing : 59/32, New Rohtak Road, New Delhi-110 005 India Phone : +91-11-45562222 Website : www.taxmann.com E-mail : sales@taxmann.com Regd. Office : 21/35, West Punjabi Bagh, New Delhi-110 026 India Printed at : Tan Prints (India) Pvt. Ltd. 44 Km. Mile Stone, National Highway, Rohtak Road Village Rohad, Distt. Jhajjar (Haryana) India E-mail : sales@tanprints.com Disclaimer Every effort has been made to avoid errors or omissions in this publication. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. It is notified that neither the publisher nor the author or seller will be responsible for any damage or loss of action to any one, of any kind, in any manner, therefrom. It is suggested that to avoid any doubt the reader should cross-check all the facts, law and contents of the publication with original Government publication or notifications. No part of this book may be reproduced or copied in any form or by any means [graphic, electronic or mechanical, including photocopying, recording, taping, or information retrieval systems] or reproduced on any disc, tape, perforated media or other information storage device, etc., without the written permission of the publishers. Breach of this condition is liable for legal action. For binding mistake, misprints or for missing pages, etc., the publisher’s liability is limited to replacement within seven days of purchase by similar edition. All expenses in this connection are to be borne by the purchaser. All disputes are subject to Delhi jurisdiction only.
Contents ACTUARIES ACT, 2006 PAGE
CHAPTER I PRELIMINARY 1. Short title, extent and commencement
1
2. Definitions
1 CHAPTER II INSTITUTE OF ACTUARIES OF INDIA
3. Incorporation of Institute
3
4. Transfer of assets, liabilities, etc., of Actuarial Society
3
5. Objects of Institute
4
6. Entry of names in register
4
7. Associates and fellows
5
8. Honorary, affiliate and student members
5
9. Certificate of practice
6
10. Members to be known as Actuaries
6
11. Disqualifications
7
12. Composition of Council of Institute
7
13. Annual general meetings
8
14. Re-election to Council
8
15. Settlement of disputes regarding election
9
16. Establishment of Tribunal
9
17. President, Vice-President and Honorary Secretary
10
I-5
CONTENTS
I-6 PAGE
18. Resignation from membership and filling up of casual vacancies
10
19. Functions of Council
11
20. Staff, remuneration and allowances
12
21. Committees of Council
12
22. Finances of Council
12 CHAPTER III
REGISTER OF MEMBERS 23. Register
13
24. Removal of name from Register
14
25. Re-entry in register
14 CHAPTER IV MISCONDUCT
26. Disciplinary Committee
14
27. Appointment of Prosecution Director
14
28. Authority, Council, Disciplinary Committee and Prosecution Director to have powers of civil court
15
29. Action by Council on Disciplinary Committee’s report
15
30. Member to be afforded opportunity of being heard
15
31. Professional or other misconduct defined
15
CHAPTER V APPEALS 32. Constitution of Appellate Authority
16
33. Term of office of Members of Authority
16
34. Allowances, conditions of service of Members and procedure etc. of Authority
16
35. Officers and others staff of Authority
16
36. Appeal to Authority
16 CHAPTER VI PENALTIES
37. Penalty for falsely claiming to be a member, etc.
17
38. Penalty for using name of Institution, awarding degrees of actuarial science, etc.
18
I-7
CONTENTS PAGE
39. Companies not to engage in actuarial practice
19
40. Unqualified person not to sign documents
19
41. Offences by companies
20
42. Sanction to prosecute
21 CHAPTER VII
QUALITY REVIEW BOARD 43. Establishment of Quality Review Board
22
44. Functions of Board
22
45. Procedure of Board
22
46. Terms and conditions of Chairperson and Members of Board
22
47. Expenditure of Board
22 CHAPTER VIII
DISSOLUTION OF THE ACTUARIAL SOCIETY OF INDIA REGISTERED UNDER THE SOCIETIES REGISTRATION ACT 48. Dissolution of Actuarial Society of India
22
49. Provisions respecting employees of dissolved society
23
CHAPTER IX MISCELLANEOUS 50. Maintenance of more than one offices by Actuary
24
51. Reciprocity
24
52. Power of Central Government to issue directions
24
53. Protection of action taken in good faith
24
54. Members, etc., to be public servants
25
55. Power of Central Government to make rules
25
56. Power to make regulations
26
57. Power of Central Government to issue directions for making or amending regulations
27
58. Laying of rules and regulations
27
59. Power to remove difficulties
27
SCHEDULE : Professional misconduct in relation to members of the institute in practice
28
SUBJECT INDEX
31
CONTENTS
I-8 PAGE
ACTUARIES (ELECTION TO THE COUNCIL) RULES, 2021 1. Short title and commencement
35
2. Definitions
35
3. Dates of election of members to the Council
36
4. Members eligible to vote
37
5. List of voters
37
6. Members eligible to contest election
37
7. Number of members to be elected
38
8. Nomination paper
38
9. Scrutiny of nominations paper
38
10. Preparation of lists of contesting members
39
11. Withdrawal of candidature
39
12. Final list of candidates
39
13. Code of Conduct for Election
39
14. Death of member
40
15. Members deemed to be elected if their number is equal to or less than number of members to be elected
40
16. Admissible number of votes
40
17. Ballot paper
40
18. Presence of member at time of scrutiny of nomination papers and counting of votes
40
19. Procedure for voting
41
20. Grounds for declaring ballot papers or electronic voting invalid
41
21. Time and date for counting of votes
41
22. Appointment of Assistant Returning Officer
41
23. Counting of votes and declaration of results
41
24. Election not to be invalid due to omission, etc.
42
25. Duties of Returning Officer
42
26. Duties of agency
42
27. Decision of Returning Officer to be final
42
28. Vacancy in any seat not to hold up constitution of the Council
43
29. Election expenses
43
I-9
CONTENTS PAGE
30. Disciplinary action against member in connection with conduct of election
43
SCHEDULE 1 : List of voters
45
SCHEDULE 2 : Information to be included in the statement accompanying the nomination
45
SCHEDULE 3 : Final list of candidates
46
SCHEDULE 4 : Procedure for voting
47
SCHEDULE 5 : Procedure for counting of votes and declaration of results
48
FORM A : Guidance to the voter for filling up the ballot paper
50
FORM B : Form of nomination for election to the council, year ........
51
FORM C : List of contesting member
51
FORM D : Notice of withdrawal of nomination from election to the council
52
FORM E : Ballot paper for election to the council
52
FORM F : Results of election to council
52
FORM G : Outer cover addressed to returning officer by name
53
INSTITUTE OF ACTUARIES OF INDIA (TRANSACTION OF BUSINESS AT MEETINGS OF COUNCIL) REGULATIONS, 2011 1. Short title and commencement
54
2. Definitions
54
3. Meetings of Council
55
4. Special meeting of Council
55
5. Notice of meeting of Council
55
6. Chairman of meeting
55
7. Quorum at meeting
56
8. Adjournment of meeting
56
9. Procedure for transaction of business
56
10. Decision in a meeting
57
11. Minutes of Council Meetings
57
12. Participation of Council members in the meeting
57
13. Responsibility of President, Chairman and Secretary for Participation through Electronic Mode
57
CONTENTS
I-10 PAGE
INSTITUTE OF ACTUARIES OF INDIA (MAINTENANCE OF REGISTER, PUBLICATION OF LIST, AND RE-ENTRY OF NAMES IN REGISTER OF MEMBERS) REGULATIONS, 2011 1. Short title and commencement
58
2. Definitions
58
3. Entry in the Register
59
4. Maintenance of the Register
59
5. Publication of List of Members
59
6. Annual Membership Fees
60
7. Re-entry in register of name of members FORM : Register of the members
60 61
ACTUARIES (PROCEDURE FOR INQUIRY OF PROFESSIONAL AND OTHER MISCONDUCT) RULES, 2008 CHAPTER I PRELIMINARY 1. Short title and commencement
62
2. Definitions
62 CHAPTER II PROCEDURES OF INQUIRY RELATED TO COMPLAINTS AND INFORMATION
3. Procedure for filing complaint
64
4. Fee for filing complaint
64
5. Registration of complaint
65
6. Withdrawal of a complaint
66
7. Information
66 CHAPTER III PROCEDURE OF INQUIRY
8. Procedure to be followed by Director on a complaint
67
I-11
CONTENTS PAGE
9. Examination of complaint 10. Mode of sending notice 11. Certain provisions relating to complaint also to be applicable for information relating to misconduct of members 12. Time-limit on entertaining complaint or information
68 69 69 69
CHAPTER IV DISCIPLINARY COMMITTEE 13. 14. 15. 16.
Functioning of the Committee Procedure to be followed by the Committee Report of the Committee Allowances to the members nominated by the Central Government
70 70 72 72
CHAPTER V MISCELLANEOUS 17. Attendance of proceeding by the complainant, defendant and witness
73
18. Participation or attendance in meeting or hearing
73
19. Residuary provision
73
FORM : Procedure for filing complaint
74
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA (ACTUARIAL, FINANCE AND INVESTMENT FUNCTIONS OF INSURERS) REGULATIONS, 2024 CHAPTER I PRELIMINARY 1. Short title, applicability and commencement 2. Objectives 3. Definitions
75 75 76
CHAPTER II GUIDING PRINCIPLES FOR ACTUARIAL, FINANCE AND INVESTMENT FUNCTIONS 4. Principles governing the Actuarial, Finance and Investment functions of insurers
77
CONTENTS
I-12 PAGE
5. Board approved policies of the insurer
78
6.
78 CHAPTER III MISCELLANEOUS
7. Power to issue circulars, guidelines and directions
78
8. Power to issue clarifications and to remove difficulties
78
9. Repeals
78
SCHEDULE I : Actuarial Functions
79
SCHEDULE II : Finance Functions
104
SCHEDULE III : Investment Functions
164
SCHEDULE IV : Loans and advances by insurance companies
217
SCHEDULE V : Inspection and supply of returns
218
SAMPLE CHAPTER
Actuaries Act, 2006 [35 OF 2006]*
An Act to provide for regulating and developing the profession of Actuaries and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-seventh Year of the Republic of India as follows:— CHAPTER I PRELIMINARY Short title, extent and commencement. 1. (1) This Act may be called the Actuaries Act, 2006. (2) It extends to the whole of India (3) It shall come into force on such date† as the Central Government may, by notification in the Official Gazette, appoint: Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the commencement of that provision. Definitions. 2. (1) In this Act, unless the context otherwise requires,— (a) “Actuary” means a person skilled in determining the present effects of future contingent events or in finance modelling and risk analysis in different areas of insurance, or calculating the value of life interests and insurance risks, or designing and pricing of policies, working out the benefits, recommending rates relating to insurance business, annuities, insurance and pension rates on the basis of empirically based tables and includes a statistician engaged in such technology, taxation, employees’ benefits and such other risk management and investments and who is a fellow member of the Institute, and the expression “actuarial science” shall be construed accordingly; *Dated 27-8-2006. †With effect from 10-11-2006.
1
S. 2
ACTUARIES ACT, 2006
2
(b) “Actuarial Society” means the Actuarial Society of India registered under the Societies Registration Act, 1860 (21 of 1860) and the Bombay Public Trusts Act, 1950 (Bombay Act No. XXXIX of 1950); (c) “appointed day” means the date on which the Institute is constituted under sub-section (1) of section 3; (d) “Authority” means the Appellate Authority referred to in section 32; (e) “Board” means the Quality Review Board constituted under sub-section (1) of section 43; (f) “Council” means the Council of the Institute as referred to in section 12; (g) “fellow” means a fellow member of the Institute; (h) “Institute” means the Institute of Actuaries of India constituted under section 3; (i) “member” means an individual whose name appears in the register of members maintained by the Institute; (j) “prescribed” means prescribed by rules made under this Act; (k) “President” means the President of the Council; (l) “register” means the register of members maintained by the Institute under this Act; (m) “specified” means specified by regulations made under this Act; (n) “Tribunal” means a Tribunal established under sub-section (1) of section 16; (o) “Vice-President” means the Vice-President of the Council; (p) “year” means the period commencing on the 1st day of April of any year and ending on the 31st day of March of the succeeding year. (2) Save as otherwise provided in this Act, a member of the Institute shall be deemed “to be in practice” when individually or in partnership with Actuaries in practice as a member or an employee of a company, he, whether or not in consideration or remuneration received or to be received,— (i) engages himself in actuarial profession; or (ii) offers to perform or performs services involving the application of actuarial techniques in the fields of insurance, pension, investment, finance and management; or (iii) renders such other services as, in the opinion of the Council, are or may be rendered by an actuary in practice; or (iv) is in employment of a person engaged in one or more of the activities mentioned in clauses (i), (ii) and (iii) above, and the words “to be in practice” with their grammatical variations and cognate expressions shall be construed accordingly.
3
ACTUARIES ACT, 2006
S. 4
Explanation.—For the purpose of this sub-section, the expression “company” includes a public financial institution as defined in section 4A of the Companies Act, 1956 (1 of 1956)*. COMMENTS SECTION NOTES
2.1 “Actuary” [Section 2(1)(a)] An "Actuary" is defined as a professional skilled in evaluating the present effects of
future contingent events or in financial modelling and risk analysis in insurance and related domains. Their work encompasses: Valuation Tasks: Determining the value of life interests and insurance risks Designing and pricing insurance policies Calculating insurance business, annuities, insurance and pension rates on the
basis of empirically-based tables Includes: Statistician engaged in such technology, taxation, employees’ benefits and such
other risk management and investments and who is a fellow member of the Institute, and the expression “actuarial science” shall be construed accordingly
CHAPTER II INSTITUTE OF ACTUARIES OF INDIA Incorporation of Institute. 3. (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. Transfer of assets, liabilities, etc., of Actuarial Society. 4. On the appointed day,— (a) all the assets and liabilities of the Actuarial Society shall stand transferred to, and vested in, the Institute. * See now section 2(72) of the Companies Act, 2013.
S. 6
ACTUARIES ACT, 2006
4
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 (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. Objects of Institute. 5. 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. Entry of names in register. 6. (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:
5
ACTUARIES ACT, 2006
S. 8
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. Associates and fellows. 7. (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. (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. Honorary, affiliate and student members. 8. (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.
S. 10
ACTUARIES ACT, 2006
6
(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. Certificate of practice. 9. (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. Members to be known as Actuaries. 10. 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. COMMENTS SECTION NOTES
10.1 Use of designation of actuary Every member of the Institute in practice shall and any other member may use the
designation of “Actuary.” A member using the designation “Actuary” is prohibited from using any other
description, whether: In addition to "Actuary", or In substitution of "Actuary".
10.2 Proviso: However, the section includes an important exception: Permitted Additional Descriptions: Members may add other designations or
letters to their name if they are entitled, such as: z Membership of other Institutes (within India or internationally), reco-
gnised by the Council. z Other professional qualifications the member possesses. Firm Naming Permission: A firm, where all partners are practicing members of
the Institute, may use the firm name with the term “Actuaries.”
ACTUARIES ACT 2006 WITH RULES – BARE ACT WITH SECTION NOTES AUTHOR : PUBLISHER : DATE OF PUBLICATION : EDITION : ISBN NO : NO. OF PAGES : BINDING TYPE :
Taxmann's Editorial Board Taxmann December 2025 2026 Edition 9789371266680 276 Paperback
Rs. 325 DESCRIPTION Actuaries Act 2006 with Rules [Bare Act with Section Notes] by Taxmann is a comprehensive statutory reference. This Edition provides the complete, amended text of the Act, along with all allied and updated rules, regulations, and major recent developments impacting the actuarial profession in India. The book features clear, section-wise notes for practical understanding, compliance, and application, making it an essential resource for readers. This book is intended for the following audience: • Actuaries & Actuarial Professionals • Members, Students & Associates of the Institute of Actuaries of India (IAI) • Regulators, Government Authorities & Policy Makers • Legal Practitioners & Corporate Legal Departments • Academics & Students The Present Publication is the 2025 Edition, covering the amended and updated text of the Actuaries Act [Act No. 35 of 2006] and Rules, with the following noteworthy features: • [Comprehensive Bare Act] Complete, updated text of the Actuaries Act 2006 with statutory footnotes • [Latest Amendments ] Covers all changes up to date, including IRDAI's 2024 actuarial and finance regulations • [Pre-amendment Provisions] Footnotes of earlier provisions for comparative reference • [Detailed Section Notes] Interpretation, compliance, and procedural guidance • [Allied Rules & Regulations] Includes all key rules up to date: o Actuaries (Election to the Council) Rules 2021 o IAI (Transaction of Business at Meetings of Council) Regulations 2011 o IAI (Maintenance of Register, Publication of List, and Re-entry of Names in Register of Members) Regulations 2011 o Actuaries (Procedure for Inquiry of Professional and Other Misconduct) Rules 2008 o IRDAI (Actuarial, Finance and Investment Functions of Insurers) Regulations 2024 • [Practical Utility] Subject index, detailed table of contents, statutory forms, and compliance templates • [Designed for Professional Use] Supports all compliance and disciplinary requirements under the Act
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