Section 137: Revocation (Cancellation) of License of the Insurer

1) The Authority may revoke the license of the insurer in the following conditions:

(a) Being failure to release the ban to perform the insurance business or the suspension of the license pursuant to Section 136 up to one year,

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

(c) In case the insolvency proceedings are commenced by the court as per the prevailing laws against the insurer,

(d) In case an application is submitted by the insurer for the dissolution and the process of dissolution is completed.

2) The Authority shall provide reasonable opportunity by allowing an appropriate period, as prescribed to the insurer, for submitting clarification before revoking the license of the insurer except the conditions of clauses (c) or (d) of sub-section (1).

3) Notwithstanding anything contained in this section, in case the condition as mentioned in clauses (a) or (b) of Sub-section (1) is created and the insurer has committed to improve the condition and not to repeat the weaknesses, the Authority may provide a reasonable period for once to the concerned insurer to improve its condition or for correcting weaknesses.

4) In case the license of any insurer is revoked pursuant to this Section, the liabilities taken by the insurer before revocation of the license shall be settled as prescribed.

5) In case the license is revoked as per this Section, the Authority shall publish the name of the concerned insurer in at least two national-level daily newspapers and through the Authority’s website for the information of the general public.