Section 49 in Insurance Regulatory and Development Authority of India (Insurance Brokers) Regulations, 2018
49. Suspension or Cancellation of certificate of registration with notice.
(1)The certificate of registration of an insurance broker may be suspended or cancelled after due notice and after giving them a reasonable opportunity of being heard if they -a) violate the provisions of the Insurance Act,1938 (4 of 1938), Insurance Regulatory and Development Authority Act, 1999 (41 of 1999) or rules or regulations, made thereunder as amended from time to time;b) fail to furnish any information relating to their activities as an insurance broker as required by the Authority;c) fail to comply with the directions issued by the Authority;d) furnish wrong or false information; or conceals or fails to disclose material facts in the application submitted for obtaining a registration or during the validity of certificate of registration;e) do not submit periodical returns as required by the Authority;f) do not co-operate with any inspection or enquiry conducted by the Authority;g) fail to resolve the complaints of the policyholders or fails to give a satisfactory reply to the Authority in this behalf;h) indulge in rebates or inducements in cash or kind to a client or any of the client's directors or other employees or any person acting as an introducer except as permitted under these regulations;i) are found guilty of misconduct or their conduct is not in accordance with the Code of Conduct specified in Schedule I - Form H and Schedule I - Form I, whichever is applicable;j) fail to maintain the capital, net-worth and deposit requirements in accordance with the provisions of regulations;k) fail to pay the fees, penalties imposed or the reimbursement of expenses under these regulations;l) violate the conditions of certificate of registration;m) do not carry out their obligations as specified in the regulations;n) undertakes multi-level marketing for soliciting and procuring of insurance policies;o) carry on the business with a Principal Officer who does not acquire practical training and pass the examination within the stipulated period as specified in regulations;p) the Authority is of the view that the establishment of an insurance broker is only to divert funds within a group of companies or their associates, and the fact is established after due enquiries made by the Authority
