Insurance Act, 1936

Revocation, etc., of assurance licences.

20.—(1) The Minister may, at any time, alter or revoke an assurance licence upon the application in writing in the prescribed form and manner of the licensee under such licence.

(2) Whenever it appears to the Minister that an assurance licence should be suspended or revoked on all or any of the following grounds, that is to say:—

(a) that the licensee thereunder has failed to comply with the provisions of the Act of 1909 or of this Act, or

(b) that, by reason of the insufficiency of the assets of the licensee thereunder, the carrying on by such licensee of the assurance business in respect of which such licence was granted is not justified, or

(c) that such licensee has failed to pay, within one month after a claim on an insurance policy with such licensee is admitted, decided, or adjudged to be due, the amount of such claim to the person entitled thereto, or

(d) in the case of a syndicate, that the constitution of the syndicate is varied by such an increase in the membership of such syndicate as in the opinion of the Minister is unreasonable having regard to the number of the members constituting such syndicate at the date of the issue of the assurance licence to such syndicate,

the Minister may give to such licensee notice in writing of his intention to consider the suspension or revocation of such licence and the grounds on which he intends to consider such suspension or revocation (as the case may be).

(3) Whenever the Minister gives under this section to the licensee under an assurance licence notice of his intention to consider the suspension or revocation of such licence, the following provisions shall have effect, that is to say:—

(a) such licensee may, within twenty-one days, or such longer time as the Minister shall allow, after the giving of such notice, make representations to the Minister in relation to such suspension or revocation;

(b) at any time after the expiration of the time limited by the next preceding paragraph of this sub-section for the making of such representations as are mentioned in that paragraph and after consideration by the Minister of such representations (if any), the Minister may, if he so thinks proper, by notice given to such licensee suspend for such time as he thinks proper and specifies in such notice, or wholly revoke, such licence;

(c) save as is otherwise provided by this sub-section, such suspension or revocation (as the case may be) shall take effect as on and from the fifteenth day after the giving of the notice effecting such suspension or revocation;

(d) at any time after the giving of such notice of suspension or revocation (as the case may be) and before such suspension or revocation takes effect, such licensee may apply in a summary manner to the High Court for the annulment of such suspension or revocation, and on such application the High Court, if it is satisfied that such licensee has complied with the provisions of the Act of 1909 and this Act and that, having regard to all the circumstances of the case, it is just and equitable that such suspension or revocation (as the case may be) should be annulled, may annul such suspension or revocation;

(e) the Minister shall be named as respondent in any application to the High Court under the next preceding paragraph of this sub-section;

(f) when an application is made to the High Court under the preceding paragraph of this sub-section, the suspension or revocation which is the subject of such application shall not take effect unless or until the High Court shall have refused to annul such suspension or revocation, but subject to the right of the High Court further to postpone such taking effect pending an appeal to the Supreme Court.