Section 136: Suspension of License or Ban of Insurance Business

1) The Authority may suspend the license of an Insurer for a certain period or impose a full or partial ban to perform the insurance business if any insurer performs any of the following acts:

(a) In case of failure to maintain the minimum paid-up capital pursuant to Section 36,

(b) In case the decision regarding the loss, damage or payment of claim pursuant to the provisions of Section 128 or 129 is not implemented within the specified time,

(c) In case it is deemed to cause serious detriment (loss) to the insured if allowed the insurer to operate the insurance business,

(d) Closing the insurance business without the approval of the Authority,

(e) Performing any other acts prohibited by this Act or Rules, By-laws framed under this Act or the existing laws,

(f) Frequent violations of the directions or order provided by the Authority.

2) The Authority shall provide a reasonable opportunity to the insurer to submit clarification before suspending the license or imposing a full or partial ban pursuant to sub-section (1).

3) The Authority may release the suspension or ban if the clarification submitted by the insurer pursuant to sub-section (2) seems to be satisfactory.

4) In case the insurer is banned from performing the insurance business fully or partially, the information shall be published in at least two national-level daily newspapers and through the Authority’s website for the general public pursuant to sub-section (1).