42DIssue of registration to intermediary or insurance intermediary

¹[42D. Issue of ²[registration] to intermediary or insurance intermediary. -- (1) The Authority or an officer authorised by it in this behalf shall, in the manner determined by the regulations made by the Authority and on payment of the fees determined by the regulations made by the Authority, issue to any person making an application in the manner determined by the regulations, and not suffering from any of the disqualifications herein mentioned, a ²[registration] to act as an intermediary or an insurance intermediary under this Act:

Provided that--

(a) in the case of an individual, he does not suffer from any of the disqualifications mentioned in ³[sub-section (3)] of section 42, or

(b) in the case of a company, or firm, any of its directors of partners does not suffer from any of the said disqualifications.

(2) A ⁴[registration made] under this section shall entitle the holder thereof to act as an intermediary or insurance intermediary .

(3) A ⁴[registration made] under this section shall remain in force for a period of three years only from the date of issue, but shall, if the applicant, being an individual does not, or being a company or firm any of its directors or partners ⁵[or one or more of its officers or other employees so designated by it and in the case of any other person, the chief executive by whatever name called, or one or more of his employees designated by him] does not suffer from any of the disqualifications mentioned ⁶[in clauses (b), (c), (d), (e) and (g) of sub-section (3) of section 42] and the application for renewal of ²[registration] reaches the issuing authority at least thirty days before the date on which the ²registration] ceases to remain in force, be renewed for a period of three years at any one time on payment of the fee, determined by the regulations, made by the Authority and additional fee for an amount determined by the regulations, not exceeding one hundred rupees by way of penalty, if the application for renewal of the ²[registration] does not reach the issuing authority at least thirty days before the date on which the ²[registration] ceases to remain in force.

(4) No application for the renewal of a ²[registration] under this section shall be entertained if the application does not reach the issuing authority before the ²[registration] ceases to remain in force:

Provided that the Authority may, if satisfied that undue hardship would be caused otherwise, accept any application in contravention of this sub-section on payment by the application of a penalty of seven hundred and fifty rupees.

(5) The disqualifications above referred to shall be the following: --

(a) that the person is a minor;

(b) that he is found to be of unsound mind by a Court of competent jurisdiction;

(c) that he has been found guilty of criminal misappropriation or criminal breach of trust or cheating or forgery or an abetment of or attempt to commit any such offence by a Court of competent jurisdiction:

Provided that, Where at least five years have elapsed since the completion of the sentence imposed on any person in respect of any such offence, the Authority shall ordinarily declare in respect of such person that hi s conviction shall cease to operate as a disqualification under this clause;

(d) that in the course of any judicial proceeding relating to any policy of insurance of the winding up of an insurance company or in the course of an investigation of the affairs of an insurer it has been found that he has been guilty of or has knowingly participated in or connived at any fraud dishonestly or misrepresentation against an insurer or an insured;

(e) that he does not possess the requisite qualifications and practical training for a period not exceeding twelve months, as may be specified by the regulations made by the Authority in this behalf;

(f) that he has not passed such examinations as may be specified by the regulations made by the Authority in this behalf;

(g) that he violates the code of conduct as may be specified by the regulations made by the Authority.

(6) If it be found that an intermediary or an insurance intermediary suffers from any of the foregoing is qualifications , without prejudice to any other penalty to which he may be liable, the Authority shall, and if the intermediary or an insurance intermediary has knowingly contravened any provision of this Act may cancel the ⁷[registration made] to the intermediary or insurance intermediary under this section .

(7) The Authority may issue a duplicate ⁸[registration] to replace a ⁸[registration] lost, destroyed or mutilated, on payment of such fee, as may be determined by the regulations made by the Authority.

⁹[(8) Any person who acts as an intermediary or an insurance intermediary without being registered under this section to act as such, shall be liable to a penalty which may extend to ten lakh rupees and any person who appoints as an intermediary or an insurance intermediary or any person not registered to act as such or transacts any insurance business in India through any such person, shall be liable to a penalty which may extend to one crore rupees.

(9) Where the person contravening sub-section (8) is a company or a firm, then, without prejudice to any other proceedings which may be taken against the company or firm, every director, manager, secretary or other officer of the company, and every partner of the firm who is knowingly a party to such contravention shall be liable to a penalty which may extend to ten lakh rupees.]