Section 119: Power of The Authority to Initiate the liquidation Process

Notwithstanding anything contained elsewhere in this Act or in the prevailing laws, the Authority may proceed the insolvency process of any insurer in the following conditions if there are sufficient grounds to prove the existence of these conditions:

(a) The liabilities of the insurer being more than the assets for three consecutive fiscal years,

(b) Being failure to fulfil the liabilities being matured for payment or payment to be made immediately till the date prescribed,

(c) If it is decided to commence the process of Insolvency pursuant to clause (e) of Section 109,

(d) If it is found that the insurer, its director or Chief executive has worked against the interest of the insured and repeatedly violated the directions provided by the Authority for its reform,

(e) Capital fund of the insurer being negative for three consecutive years,

(f) If the license of the insurer has been cancelled pursuant to Section 137,

(g) If an application is submitted by the insurer for liquidation pursuant to Section 117.