(1) Within thirty days of commencement of this Act, a licensed insurer shall, within thirty days of commencing insurance business, and an insurer that has not established an audit committee at the time of commencement of this Act, within thirty days of the commencement of this Act, shall constitute a three-member audit committee under the coordination of one director representing the common shareholders. The information should be given to the authority.
(2) The chairman, chief executive, chief accountant or his close relative of the insurer cannot be a member of the committee under sub-section (1).
(3) The work, duties and powers of the Audit Committee shall be as follows:-
(a) To review the financial statements of the insurer and ascertain the basis, truth and veracity of the information contained in such statements,
(b) Monitoring and ascertaining whether the insurer's accounting, budget, internal control system is appropriate or not,
(c) To inspect and monitor whether the procurement system of the insurer is appropriate and economical or not,
(d) whether or not the bookkeeping, internal audit system records or electronic records of the insurer are kept in an appropriate manner; To determine,
(f) To ascertain whether the accounting, audit, balance sheet or financial statement of the insurer is in accordance with this Act or the regulations made under this Act or the instructions issued by the authority or the regulations of the insurer,
(g) To recommend the names of three auditors for the appointment of auditors of the insurer,
(h) Giving opinions and advice on matters requested by the board of directors of the insurer,
(j) To ascertain whether the insurer has complied with the instructions given by the authority or not.
(4) The Audit Committee shall submit a report of its proceedings to the Board of Directors of the Insurer.