Section 113: Insurance Business May Be Transferred

1) Out of insurance business being performed by any insurer, entire or partial portfolio of insurance business may be handed over to another insurer performing the insurance business of same portfolio by receiving an approval from the Authority.

2) If any insurer desires to take or hand over the insurance business pursuant to sub-section (1), the concerned insurers shall pass the special resolution in their respective General meetings, make a mutual agreement, and submit a joint application to the Authority along with documents as prescribed.

3) The Authority may grant approval as prescribed according to the agreement if it concludes that the transfer of insurance business is reasonable while investigating the application and comprehending additional matters if required pursuant to sub-section (2).

4) Notwithstanding anything contained in sub-section (3), the Authority shall not grant approval to take or hand over the insurance business if it seems possible to cause detriment or loss to the insured, increase unhealthy competition in the insurance business or establish a monopoly or controlled commercial practice.

5) After the assignment of the insurance business pursuant to sub-section (3), obtaining approval for assigning from Nepal Insurance Authority, the assets and liabilities of such insurer shall be transferred to the insurer which takes over the insurance business by assignment.

6) Other provisions concerning with assignment of insurance business shall be as prescribed.