Insurance Act 2079

Chapter- 19 Actions, Offences and Punishment

Section 138: Fineable
1) The Authority may impose the following fines to any insurer, insurance intermediary or other insurance service provider in addition to the other punishment pursuant to this Act in case they fail to prepare the statements, reports or documents in accordance with this Act or Rules, By-laws  or Directives framed under this Act, fail to provide the information to be given or fail to submit the documents and statements within the period prescribed or fail to provide documents, statements, data, statistics or This Act or records as required by the Authority or the official appointed by the Authority within the prescribed period in the course of performing the functions related to regulation, inspection or supervision:
(a) In the case of an insurer, twenty-five thousand rupees per day for one week after the expiry of the term and two thousand rupees per day for insurance intermediaries and other insurance service providers,
(b) In the case of an insurer, fifty thousand rupees per day for two weeks after the expiry of the term and five thousand rupees per day for insurance intermediaries and other insurance service providers,
(c) After the expiry of the period of clause (b), in the case of an insurer, one hundred thousand rupees per day at any time and ten thousand rupees per day for insurance intermediaries and other insurance service providers.
2) The Authority may impose a fine on the insurer as follows if the insurer fails to make a valuation of the loss or damage within the prescribed period:
(a) Daily five thousand rupees up to one week of exceeding the deadline,
(b) Daily ten thousand rupees up to two weeks of exceeding the deadline,
(c) Daily twenty-five thousand rupees from the date of expiration of the time limit referred to in clause (b) up to an indefinite period.
3) In case the insurer fails to determine the liability instead of claim or determines liability causing detriment (loss) or injustice, or being failure to settle the liability within the period prescribed, the Authority may impose a fine from two hundred thousand rupees to two million rupees depending on the nature and gravity of the matter.
4) In case the insurer performs any act contrary to this Act or Rules, By-laws or Directives framed under this Act or fails to follow the directions or orders issued by the Authority or does not
perform the insurance business with due process pursuant to this Act or prepare false  statement, the Authority may impose a fine as follows:
(a) Two hundred thousand rupees for the first time,
(b) Twenty-five hundred thousand rupees for the second time,
(c) Five hundred thousand rupees for each subsequent time for the third time or more.
5) If the insurer fails to submit a compliance report, the Authority may impose a fine ranging from one lakh to three lakh.
6) If the insurance intermediary performs any act contrary to this Act or Rules, By-laws or Directives framed under this Act or does not perform the works related to insurance with due process as per This Act or prepares false statement, the Authority may impose a fine as follows:
(a) Five thousand rupees for the first time,
(b) Twenty-five thousand rupees for the second time,
(c) Fifty thousand rupees for each subsequent time for the third time or more.
7) In case the insurer being failure to have auditing within the period specified under Section 87, the authority may impose fine to the insurer as follows:
(a) Fifty thousand rupees for the first week,
(b) One hundred thousand rupees for one week to one month,
(c) Five hundred thousand rupees for one month to three months,
(d) One million rupees for any period of three months to more than three months.
8) In case the insurer, director, official, employee or insurance intermediary or other insurance service provider were asked to submit the clarification pursuant to Section 128(2) or Section 129(3), but failed to submit the clarification within the period defined, the Authority may impose fine as follows:
(a) One hundred thousand rupees to the insurer,
(b) Five thousand rupees to the director, officer, employee, insurance intermediary or other insurance service provider of the insurer.
9) If the insurance surveyor does not submit valuation report in the prescribed time, the Authority may impose fine to that surveyor as follows for making late submission:
(a) Two thousand rupees for one week after the expiry of the period,
(b) Five thousand rupees for two weeks after the expiry of the period,
(c) Ten thousand rupees for one month after the expiry of the period,
(d) Twenty-five thousand rupees for any period after one month after the expiry of the period.
10) If it is found while making investigation or verification upon the complaint submitted by anyone or during the course of regulation, inspection or monitoring performed by the Authority that the insurance surveyor submitted the report making erroneous valuation of loss, the Authority may make aware or impose fine of fifty thousand rupees or punish by both for the first time and if the same act is repeated, revoking his/her license the Authority may impose fine of one hundred thousand rupees and make recover the amount equivalent to the loss incurred from him/her and pay the same to the insured.
11) Notwithstanding anything contained elsewhere in the prevailing laws, if it is found that anyone has kept the property earned from the work liable to fine under this Section in the name of him/herself, joint family, relatives or any other person or concealed the same, it shall write to the concerning body to seize those properties including the properties increased or make increased from the same and it shall be the duty of the body to perform accordingly.
12) High The party being dissatisfied upon the punishment imposed by the Authority may file petition to the concerned High Court within thirty-five days from the date of punishment received.