Section 34 in The Insurance Regulatory And Development Authority (Insurance Brokers) Regulations, 2002
34. Cancellation or suspension of license with notice .-(1) The license of an insurance broker may be cancelled or suspended after due notice and after giving him a reasonable opportunity of being heard if he-
(a)violates 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;(b)fails to furnish any information relating to his activities as an insurance broker as required by the Authority;(c)furnishes wrong or false information; or conceals or fails to disclose material facts in the application submitted for obtaining a license;(d)does not submit periodical returns as required by the Authority;(e)does not co-operate with any inspection or enquiry conducted by the Authority;(f)fails to resolve the complaints of the policy-holders or fails to give a satisfactory reply to the Authority in this behalf;(g)indulges 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;(h)is found guilty of misconduct or his conduct is not in accordance with the code of conduct specified in Schedule III;(i)fails to maintain the capital requirements in accordance with the provisions of regulation 10;(j)fails to pay the fees or the reimbursement of expenses under these regulations;(k)violates the conditions of license;(l)does not carry out his obligations as specified in the regulations;(m)if the principal officer does not acquire practical training and pass the examination within the stipulated period as specified in regulation 9.(2)In the circumstances where the Authority feels that the establishment of an insurance broker is only to divert funds within a group of companies or their associates, it can after due enquiries made by it cancel the license granted to the insurance broker.
