Section 3(4) in The Insurance Act, 1938

Central Government Act

(4) 3[ The 2[ Controller] shall cancel the registration of an insurer either wholly or in so far as it relates to a particular class of insurance business, as the case may be,--

(a) if the insurer fails to comply with the provisions of section 7 or section 98 as to deposits, or

(aa) 4[ if the insurer fails, at any time, to comply with the provisions of section 64VA as to the excess of the value of his assets over the amount of his liabilities, or]

(b) if the insurer is in liquidation or is adjudged an insolvent, or

(c) if the business or a class of the business of the insurer has been transferred to any person or has been transferred to or amalgamated with the business of any other insurer, or

(d) if the whole of the deposit made in respect of 5[ insurance business has been returned to the insurer under section 9,] 6[ or]

(e) 6[ if, in the case of an insurer specified in sub- clause (c) of clause (9) of section 2, the standing contract referred to in that sub- clause is cancelled or is suspended and continues to be suspended for a period of six months, 4[ or

(ee) if the Central Government so directs under sub- section (4) of section 33,] and the 2[ Controller] 7[ may cancel the registration of an insurer--

1. Subs. by Act 32 of 1965, s. 2, for certain words. 2. Subs. by Act 47 of 1950, s. 4, for" Superintendent of Insurance" (w. e. f. 1- 6- 1950 ). 3. Subs. by Act 20 of 1940, s. 3 (retrospectively), for the original sub- section. 4. Ins. by Act 62 of 1968, s. 2 (w. e. f. 1- 6- 1969 ). 5. The letter and words" a class of" omitted by s. 2, ibid (w. e. f. 1- 6- 1969 ). 6. Ins. by Act 13 of 1941, s. 3. 7. Subs. by Act 6 of 1946. s. 3, for" may cancel the registration of an insurer if the insurer has failed to have the registration renewed".

(f) 1[ if the insurer makes default in complying with, or acts in contravention of, any requirement of this Act or of any rule or order made thereunder, or]

(g) if the 2[ Controller] has reason to believe that any claim upon the insurer arising in India under any policy of insurance remains unpaid for three months after final judgment in regular course of law, or

(h) 1[ if the insurer carries on any business other than insurance business or any prescribed business;]].]