Page 118 - DCOM309_INSURANCE_LAWS_AND_PRACTICES

Unit 7: Insurance Regulatory and Development Authority Act (IRDA Act)

(3) Notwithstanding anything contained in sub-section (1) or sub-section (2), a member may – Notes
(a) Relinquish his office by giving in writing to the Central Government notice of not less
than three months; or
(b) Be removed from his office in accordance with the provisions of section 6.
6. Removal From Office - (1) The Central Government may remove from office any member
who-
(a) Is, or at any time has been, adjudged as an insolvent; or
(b) Has become physically or mentally incapable of acting as a member; or

(c) Has been convicted of any offence which, in the opinion of the Central Government,
involves moral turpitude; or

(d) Has acquired such financial or other interest as is likely to affect prejudicially his functions
as a member; or

(e) Has so abused his position as to render his continuation in office detrimental to the public
interest.

(2) No such member shall be removed under clause (d) or clause (e) of sub-section (1) unless he
has been given a reasonable opportunity of being heard in the matter.
7. Salary and Allowances of Chairperson and Members - (1) The salary and allowances payable
to, and other terms and conditions of service of, the members other than part-time members
shall be such as may be prescribed.
(2) The part-time members shall receive such allowances as may be prescribed.
(3) The salary, allowances and other conditions of service of a member shall not be varied to his
disadvantage after appointment.
8. Bar on Future Employment of Members - The Chairperson and the whole-time members
shall not, for a period of two years from the date on which they cease to hold office as such,
except with the previous approval of the Central Government, accept–

(a) Any employment either under the Central Government or under any State Government; or
(b) Any appointment in any company in the insurance sector.
9. Administrative Powers of Chairperson - The Chairperson shall have the powers of general
superintendence and direction in respect of all administrative matters of the Authority.
10. Meetings of Authority - (1) The Authority shall meet at such times and places and shall
observe such rules and procedures in regard to transaction of business at its meetings (including
quorum at such meetings) as may be determined by the regulations.

(2) The Chairperson, or if for any reason he is unable to attend a meeting of the Authority, any
other member chosen by the members present from amongst themselves at the meeting shall
preside at the meeting.
(3) All questions which come up before any meeting of the Authority shall be decided by a
majority of votes by the members present and voting, and in the event of an equality of votes,
the Chairperson, or in his absence, the person presiding shall have a second or casting vote.

(4) The Authority may make regulations for the transaction of business at its meetings.

LOVELY PROFESSIONAL UNIVERSITY 113