As enacted

Contents

Regulation of Insurance Industry Act 2000 · As enacted · Part V · Accounts, Inspection and Investigation

54. Power to order investigation

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

(1)

Where the Board has reason to believe —

(a)

that the interests of the policy holders of an insurer are in danger ; or

(b)

that any insurer is unable to meet its obligations or has made default in complying with any of the provisions of this Act, the Board may, after giving the insurer reasonable notice and an opportunity of being heard, order an investigation of the affairs of the insurer to be made on behalf of the

Board by an auditor or an actuary or by both an auditor and an actuary appointed simultaneously or first an auditor only or an actuary only and afterwards by an actuary or auditor, or may itself make such investigation :

Provided that, an auditor or actuary appointed for the purpose by the Board shall not be an auditor or actuary in the employment of the insurer.

(2)

The cost and expenses of any investigation under subsection (1) shall be paid for by the insurer.

(3)

In carrying out an investigation under this section, the

Board may, by notice in writing require —

(a)

the insurer, or any person having the custody of books of accounts, records or other documents on behalf of the insurer ;

Regulation of Insurance Industry

(b)

any person who is or has at any time been or acted as a director, actuary, auditor, an officer or servant or agent of the insurer ; or

(c)

any past or present member or policy holder of the insurer, to produce for its inspection and allow it to copy, the whole or any part of any books, accounts, records or other documents of the insurer, including documents evidencing the insurer’s title to assets held for the purposes of such business :

Provided that, a requirement under this subsection shall extend only to documents relating to business carried on by the insurer evidencing the insurer’s title to assets held for the purposes of any such business.

(4)

In making an investigation under this section, the

Board may require any such individual as is specified in subsection (3), to attend before it and be examined on oath with respect to the insurer’s business, and for the purpose of this section, it may administer oaths.

(5)

Any person who refuses or fails when required to do so under subsection (3) or (4) to produce any document in his or her custody or to attend for or submit for examination by the Board or any person appointed by it, or to answer any question put to him or her on such examination, shall be guilty of an offence and shall on conviction after summary trial before a Magistrate be liable to a fine not less than fifty thousand rupees.

(6)

The results of any investigation made under this section shall be recorded in writing by the auditor or actuary appointed, as the case may be, and copies of the record shall be supplied to the Board and to the insurer.

Read on from s 55

Part VI