(1) The Board may cancel the
registration of an Insurer by providing a written notice with effect from the date
prescribed in the same notice in the following circumstances:
(a) If the Insurance Business is not started within six months from
the date of obtaining the certificate,
(b) If it is felt that the liability of the Insurer exceeds its assets
# within Nepal,
(c) If the Insurer could not fulfill the liability pursuant to the
decision within three months from the date of final decision of
the court in the case filed under the Insurance Policy issued
within Nepal,
(d) If the head office of the Insurance Business of any foreign
Insurer is situated out side Nepal and in case it is felt that
Nepalese Insurer has not obtained equal facilities there which are
enjoyed by the foreign Insurer pursuant to the prevailing law of
such country,
(e) If the Insurer does not open its office inside Nepal,
(f) If the Insurer does not perform the functions to be performed or
has performed any functions which is not to be performed
pursuant to this Act or the Rules made under this Act.
(2) Before canceling the registration of an Insurer pursuant to Sub-
section (1), the Board shall provide a reasonable time-limit to submit clarification
to the concerned Insurer, stating the reasons for canceling its registration.
(3) If the concerned Insurer does not submit its clarification within the
time period mentioned in Sub-section (2) or in case the clarification submitted by
it is found not to be satisfactory, the Board shall cancel the registration of such
Insurer pursuant to Sub-section (1), and shall publish a notice in two major
newspapers to be published Nepal for the information public in general.
(4) Mere cancellation of the registration of an Insurer pursuant to this Section shall not make any effect to the rights and liabilities of the concerned
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# Inserted by 1 st amendment
Insurer regarding to any action taken or functions performed before the
cancellation.