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srilawsby aturio
As enacted
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Part V · Accounts, Inspection and Investigation

57. Power of Board to issue directions

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

(1)

Where the Board is satisfied that the affairs of any insurer are being conducted in a manner likely to be detrimental to the public or national interest or the interest of the policy holders or prejudicial to the interests of the insurer, the Board may issue such directions to the insurer as it may consider necessary, and in particular may require the insurer —

(a)

to take such action or recruit such management personnel as may be necessary to enable it to conduct its business in accordance with sound insurance principles ;

(b)

to remove any of its directors or any person whom the Board considers unfit to be associated with it ;

(c)

to take action as to the disposition or recovery of any of its assets ;

(d)

to take steps for the recovery by the insurer of sums appearing to the Board to have been illegally or improperly paid ; and

(e)

to make such arrangements with respect to reinsurance as the Board considers necessary.

(2)

The Board may, upon representations being made to it, or on its own motion, modify or cancel any directions issued under subsection (1) and in so doing, may impose such conditions as it thinks fit.

Regulation of Insurance Industry

(3)

Any insurer who fails to comply with any direction issued to it under subsection (1) shall be guilty of an offence under this Act, and shall be liable on conviction after summary trial before a Magistrate to a fine not less than fifty thousand rupees.

(4)

Where upon a conviction under subsection (3) an insurer continues to fail to comply with a direction issued, the Board shall have the power to suspend the registration granted for a period to be specified by the Board, and the provisions of subsection (2) of section 18 shall apply in respect of such insurer, during that period of suspension.

Part VI

Publicity

Read on from Part VI

Part VII

Management by Administration and Winding Up

Read on from Part VII

Part VIII

Registration of Brokers and Insurance Agents

Read on from Part VIII

Part IX

Offences

Read on from Part IX

Part X

General

Read on from Part X

Schedules