Registration of insurance company will cancel if the investigation team is not informed

Sunbd Desk || Published: 2021-06-06 11:51:41 || Updated: 2021-06-06 11:51:41

The Insurance Development and Regulatory Authority (IDRA) has finalized the draft Regulation on Inspection and Request for Information, 2021, with the provision of canceling the registration of the insurance company concerned or appointing an administrator if the authority or the investigation team fails to provide the required information or delays unnecessarily.

This was finalized at a meeting of the IDRA’s Committee on Life and Non-Life Rules / Regulations on May 5. Earlier, the draft regulations were uploaded on the authority’s website and the views of stakeholders were taken. Sources said that it will be published in the form of a gazette soon.

The new regulations (Regulation 3A) provide for the inspection procedure, the authority may conduct one or more inspection teams, including a team leader, to monitor the activities of the insurer from time to time.

The inspection team may examine the following documents and books related to the activities of any office, including the insurer’s subsidiary (subsidiary, associate organization, etc.) by written or oral subpoena.

This regulation (Regulation-4A) on offenses and penalties states that the following matters shall be considered as offenses in the conduct of inspection by the authority: In case of non-cooperation in the conduct of inspection; If the investigation is disrupted; Failure to provide the information required by the authorities or the investigation team; Unnecessary delays in providing the required information and ignoring the authority’s instructions to attend the hearing.

If the authority is not satisfied with the written explanation of the insurer regarding the inspection report and the statement raised at the hearing, the authority may charge the insurer in accordance with the provisions of the relevant section of the Act.

Sunbd/NJ

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