Section 12 in The Insurance Regulatory and Development Authority (Sharing of Database for Distribution of Insurance Products) Regulations, 2010
12. Liability for action in case of default by the insurance company. -
An insurer that(a) fails to exercise due diligence in relation to the referral arrangement entered into with the referral company;(b)fails to furnish any information or furnishes wrong information to the Authority relating to the referral arrangement as required under these regulations;(c)fails to comply with any of the obligations specified under these regulations;(d)violates the conditions of its registration; or(e)fails to comply with any of the provisions of the Act, the Insurance Regulatory and Development Act, 1999 (41 of 1999), the rules and regulations framed thereunder and such other directions issued by the Authority from time-to-time shall be liable for any of the actions as provided for under the provisions of the Act, the Insurance Regulatory and Development Act, 1999 (41 of 1999), and the relevant Regulations made thereunder.Provided that no such action shall be initiated by the Authority and order passed thereafter without giving an opportunity of hearing to the insurer;
