of branch office of foreign insurance company in Nepal (1) Regardless of what is written in the prevailing law, the insurance business of the branch office located in Nepal will be automatically closed as soon as the process of Damasahi is started according to the law of the related country against the foreign insurance company.
(2) Regardless of what is written in the current law, if the liability of the branch office of such company in Nepal is affected due to the initiation of the Damasahi process against the foreign insurance company according to the law of the respective country, the information including the details of the property in Nepal to fulfill the liability created by the insurance business conducted by such office in Nepal. It should be given to the authority immediately.
(3) If the authority receives information that the process has been initiated according to sub-section (2), the authority shall appoint an appraiser for that purpose and conduct an assessment of the liability of the insurance business conducted by such office in Nepal and the assets of such office in Nepal. (4) The appraiser appointed in accordance with sub-section (3) shall provide the amount as per section Id, 39, 40 and 41 and the details of other movable and immovable assets of such office: the appraised amount including the amount of the liability to be maintained at the time and when the insurance certificate of such office is issued, Nepal A report should be submitted detailing the amount to be submitted to the government and other amounts to be paid and details of liabilities.
(5) After receiving the report as per sub-section (4), the authority shall withhold the amount for the liability of such office in Nepal so that such insurer cannot spend it.
(6) to be borne by such office from the amount as per sub-section (5); Obligations must be fulfilled as prescribed.
(7) According to sub-section (6), the remaining amount after fulfilling the obligations can be taken back to the respective country according to the prevailing law.
(8) If it appears from the report as per sub-section (4) that due to the conduct of insurance business in Nepal, it is not possible to meet the obligations of the insured or other obligations.The authority will instruct such office to arrange the necessary amount so that it can be completed.
(9) It shall be the duty of the concerned office to arrange for such amount in accordance with sub-section (8). (10) If such amount cannot be arranged from the office according to sub-section (9), the authority will request the Government of Nepal to arrange to receive such amount from the regulatory body of the concerned country through diplomatic channels.
(11) If the liability cannot be paid according to sub-section (10), the authority shall arrange for the necessary amount to be paid from the insured interest protection fund.
(12) If the obligation cannot be fulfilled according to sub-section (11), the Authority may request the Government of Nepal to fulfill the obligation of such amount.