Insurance Act 2079

Chapter- 13 Problematic Insurer

Section 104: Functions, Duties and Powers of Special Administration Team
1) The special administration team formed pursuant to Section 103 may exercise all the authorities of the General Meeting, Board of Directors, Chief Executive or any other official of the insurer.
2) By remaining under sub-section (1), the team shall have the following power regarding to manage the movable and immovable assets, to carry out resolution (settlement) of any property and liability of the Insurer concerned and operating such Insurer:
(a) To transfer ownership or handover any or all shares issued by the insurer or any equipment to the name of another person or organisation as prescribed,
(b) To acquire any or all property of the insurer or its subsidiary company and sell the same, access and control over the office, ledgers, records and information system,
(c) To acquire or sell the property or rights of the insurer or the same situated with another person or organisation,
(d) To transfer certain rights and liabilities of the insurer to the other person,
(e) To sell the shares of the insurer that remained unsold,
(f) To cancel any or all the shares and other financial instruments issued by the insurer,
(g) To issue other instruments related to share or capital,
(h) To hand over any or all portfolios of the insurance business being operated by the insurer to another insurer,
(i) To persuade to submit the documents deemed as necessary from the concerned person or organisation to carry forward the activities of the team,
(j) To perform or cause to make perform necessary tasks in order to protect the interest of the insured.
3) The team shall not have an obligation to receive consent of promoter, shareholder, insured, insurance intermediary of the insurer, including any person or organisation of public or private sector and also shall not have to inform any person, firm, company or organisation except otherwise mentioned in this Chapter, while carrying out management under this Section.
4) The special administration team may perform or cause to perform the following works on behalf of the insurer:
(a) To give continuation to the works being performed by the insurer and perform all necessary works to give continuation,
(b) To postpone or stop any or all the activities being performed by the insurer,
(c) To withhold the payment of insurance risk assessment or insurance liability or to determine the limitation for the same,
(d) To appoint necessary employee, official or consultant for the insurer,
(e) To summon meeting of shareholders, insured, insurance intermediary, employees or officials to discuss on subjects deemed as necessary and take decision thereof,
(f) To undertake any legal defence or litigate on behalf of insurer,
(g) To perform or cause to perform other necessary activities related with the activities of the insurer.
5) If the special administration team considers that it is appropriate to merge or to merge the insurer being under its control, the team shall propose with the Authority, along with the reasons thereof.
6) Notwithstanding whatever matter has been written in existing law, while selling the property of the Insurer, the special administration team may sell by adopting transparent and professional perspective with more than one way of auction, sealed bid, negotiation and so on, after determining minimum price on the ground prescribed.
7) The special administration team shall submit the statement including the financial statement, property selling plan of that organisation and team’s purview thereof, anticipation of liability of that organisation or its mode of payment, actual transfer of properties and estimation of liability to the Authority from time to time.
8) If the special administration team considers the necessity of performing the works like the sale of properties, collection of properties, and anticipation of liabilities, it may hand over such work to any entity or company which is capable of performing such works.
9) All the expenses incurred by the special administration team in performing the works as per this section shall be borne by the Insurer, and the limitation of such expenses shall be as determined by the Authority.