(1) In any of the following cases, the chairman or member shall not remain in office:-
(a) If he resigns in writing to the Government of Nepal,
(b) If he is ineligible to hold office according to sub-section (3) of section D,
(c) If he is dismissed from office by the Government of Nepal in accordance with sub-section (2) on the basis of bad conduct, lack of work capacity or non-compliance with official responsibilities.
(2) If the Government of Nepal has to dismiss the chairman or member on the basis mentioned in clause (c) of sub-section (1), it may dismiss the chairman or member on the recommendation of the inquiry committee as follows:-
(a) One person appointed by the Government of Nepal from amongst the judges retired from the High Court - Chairman (b) Two persons from different fields appointed by the Government of Nepal from among the persons who have obtained a master's degree and have at least ten years of experience in the insurance or financial sector - members
(3) In the case of the chairman or any member, after the investigation committee is formed according to sub-section (2), such person shall be automatically suspended until the investigation period is over.
(4) The term of office of the committee formed as per sub-section (2) shall be three months at most from the date of formation.
(5) If for any reason the position of the chairman or member of the inquiry committee constituted as per sub-section (2) becomes vacant, such member shall be filled for the remaining period according to the procedure by which he was appointed.