(1) An insurer may transfer all or some of the type of insurance business (portfolio) it is doing to another insurer doing the same type of insurance business with the approval of the Authority. (2) According to sub-section (1), if an insurer wishes to transfer or give insurance business, the concerned insurers shall pass a special resolution regarding the same in their respective general meetings and make a joint application to the authority along with the prescribed documents.
(3) While examining the application received according to sub-section (2), if there is any additional matter to be understood from the applicant, and if it is deemed appropriate to transfer the insurance business, the authority shall transfer the insurance business according to the agreement. Can grant approval as specified for transfer.
(4) Notwithstanding anything written in sub-section (3), any insurance business: the transfer of which will cause harm or loss to the insured, may increase unhealthy competition in the insurance business or any insurer. Authority shall not grant approval to transfer or transfer insurance business if there is a possibility that monopoly or controlled business practice may be maintained.
(5) After taking the approval to transfer the insurance business according to subsection (3), after the transfer of the insurance business, the assets and liabilities of such business shall be transferred to the insurer who will transfer the insurance business.
(6) Other arrangements related to the transfer of insurance business shall be as prescribed.