Section 54 in Insurance Regulatory and Development Authority of India (Insurance Brokers) Regulations, 2018
54. Procedure for Cancellation of certificate of registration.
(1)Authority shall issue the final order for cancellation of the certificate of registration of the insurance broker and they shall cease to act as an insurance broker from the date of the final order.(2)The process of notification of the cancellation of certificate of registration of the insurance broker is outlined in regulation 55.(3)The Authority in such an event may pass such order as it thinks fit for the disposal of the deposit of the insurance broker made under regulation 23.(4)An insurance broker whose certificate of registration has been cancelled shall continue to service the contracts already concluded through them for a period of six months from the order of cancellation of certificate of registration within which period they shall make suitable arrangements for having the contracts attended to by another registered insurance broker.(5)The registered insurance broker who agrees to take over the obligations of policy service from the insurance broker whose certificate of registration has been cancelled shall submit their request to the insurer for serving the policies / contracts through the term.(6)The registered insurance broker on obtaining the approval from the insurer, for take-over of the obligations of policy service, can collect remuneration on current contracts in vogue with prospective effect from the date of service of the contracts.(7)The insurer shall pay remuneration / policy service, on current contracts in vogue with prospective effect from the date of allotment of service of the contracts to the insurance broker to whom the insurer has given the authority.
