Section 134: Power of The Authority

1) If case an Insurer is found to have violated this Act, Rules, By-laws or Directives framed under this Act or found violation of orders or submitted false statements or data to the Authority, the
Authority may take the following actions upon such insurer or its director, officials, chief executive employees, insurance intermediary or other insurance service provider:

(a) To make aware or issue a warning in writing,

(b) To execute a deed of commitment for improvement or to order for any improvement prescribing the definite period,

(c) To take into control the assets or books of accounts,

(d) To prohibit the distribution of bonuses or issuing bonus shares or right shares to the shareholders,

(e) To suspend or give an order  to the insurer to suspend the director(s), official(s), chief executive or employee(s) and insurance intermediary of the insurer,

(f) To impose a complete or partial ban on the operation of the insurance business,

(g) To file a petition to the concerned High Court to liquidate the insurer.

2) If a promoter, shareholder, director, chief executive or official or any concerned person of any insurer violates this Act or Rules, By-laws, or Directives framed under this Act or order, the Authority may, based on the nature and seriousness of violation, take one or more of the following actions:

(a) To forfeit and freeze the shares of the concerned insurer possessed by him/her and sell or cause to make sell such shares to another person or organisation,

(b) To withhold or suspend or cause to make withhold or suspend some or all privileges including meeting allowance, remuneration to be received by the Board of directors, director, official and other employee,

(c) To remove the chairman, director, chief executive or employee from their post by giving written notice if it is found from regulation, inspection or monitoring that the insurer has not worked in the interest of the insured, shareholder and insurer,

(d) If anyone has taken or given salary, allowances and other privileges in contrary to this Act or Rules, By-laws, Directives framed under this Act; to recover all such facilities or the amount to be involved instead of the same and interest as per the prevailing laws from the persons who have provided such facilities,

(e) To issue an order to the concerned Insurer to write to the concerned agency to take action against a director, chief executive, office bearer or employee of the insurer with whom he/she is professionally affiliated.

3) The person sacked (removed) from the post pursuant to clause (c) of sub-section (2) shall not receive any compensation or facilities in consequence of having retirement and shall not be appointed in the service of any insurer till five years from the date of retirement.

4) If any amount is to be paid by the insurer due to negligence or bad intention of any director, official, chief executive or employee, the Authority may recover or order to make recover such amount from the director, official, chief executive or employee.

5) In accordance with sub-section (4), the concerned director, official, chief executive or employee shall have to pay personally within thirty-five days from the date of obtaining information of order by the Authority.

6) In accordance with sub-section (5), in case such amount is not paid within the prescribed period, the amount shall be recovered from an account maintained in any bank or financial institution in the name of the concerned director, official, chief executive or employee or member of joint family or from movable, immovable properties of his/her own or joint family.

7) In case the Authority carries out regulation, inspection, supervision or any other actions of any Insurer or intermediary under this Act and publishes or broadcasts public notices thereof, the concerned Insurer shall have to pay the expenses to be incurred for publishing such notices.