Section 38 in The Insurance Regulatory And Development Authority (Insurance Brokers) Regulations, 2002
38. Show-cause notice and order .-(1) On receipt of the report from the enquiry officer, the Authority shall consider it and issue a show-cause notice to the insurance broker if the contents of the report warrant a suspension or cancellation of the license granted to him:
Provided that no such notice as required, in case of provisions of regulation 35 are attracted.(2)The insurance broker shall within twenty-one days of the date of receipt of the show cause notice send a reply to the Authority.(3)The Authority after considering the reply to the show cause notice shall, as soon as possible, but not later than thirty days from the receipt of the reply, pass such an orders as it deems fit:Provided, however, where the insurance broker on serving of the notice under this regulation fails to furnish any reply within the stated period, the Authority may after the expiry of such time proceed to decide the case ex parte .(4)The Authority shall send a copy of the order made under clause (3) to the insurance broker.
