Chapter-2 Establishment of Authority and Its Functions, Duties and Power

Section 12: Vacancy in the office of Chairperson or Member

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1) The Chairperson or a member shall not continue in office in any of the following circumstances:-

(a) If one submits a written resignation to the Government of Nepal.

(b) If one becomes disqualified as a Chairperson or member pursuant to Section 8 of sub-section (3).

(c) If the Government of Nepal removes him due to reasons of misconduct or incompetence to carry on his functions or inability to fulfil his duties and responsibilities pursuant to sub-section (2).

2) For the purpose of removal of the Chairperson or member pursuant to sub-section (1) clause (c), the Government of Nepal may release the Chairperson or member upon the recommendation of the Inquiry Committee formed as under:

(a) Appointed by the Government of Nepal from amongst retired judges of the High Court Chairman
(b) Appointed by the Government of Nepal from amongst persons who had acquired master’s degrees and obtained a minimum of ten years experience in the field of insurance or financial sectors (2 members from different sectors) Member

3) The Chairperson or member against whom inquiry is being made by the Inquiry committee shall remain ipso facto suspended for the period of inquiry made by the committee so formed.

4) The tenure of the inquiry committee formed under sub-section (2) shall be a maximum of three months from the date of formation.

5) If due to any reasons, the post of Chairperson or member of the inquiry committee formed under sub-section (2) becomes vacant, the Government shall appoint any person to that vacancy for the remaining tenure by fulfilling the same procedures as the person was appointed.

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