Law: Insurance Ordinance, 2000

Section: 156

Insurance Ordinance (XXXIX of 2000)--Ss. 39 & 156---Securities and Exchange Commission of Pakistan Act (XLII of 1997), S.33---Transferring assets by Insurance Company in violation of law---Imposition of penalty---Appeal against---During inspection of the books of accounts of the insurance company, it transpired that it had invested amounts in acquiring assets---Company did not provide the title documents. of any of the said assets to the inspection team, which created a doubt about the assets, whether those were in the name of the Company---Show-cause notice was issued to the Company and Director being not satisfied with the response of the Company, imposed penalty of Rs.2 million on the Company and Company had filed appeal against order of the Director---Validity---Section 39 of the Insurance Ordinance, 2000 had clearly stated that assets of the insurer would be kept in the corporate name under the direct control of the insurer---Argument of the appellant that since the assets were publicly treated as property of the Company, the formality of transferring the assets in corporate name as required under S.39 of the Insurance Ordinance, 2000, was not necessary---Appeal was dismissed. ORDER S. TARIQ ASAF HUSSAIN, COMMISSIONER (LD).---This order shall dispose of Appeal No.8 of 2010 filed under section 33 of the Securities and Exchange Commission of Pakistan (the "Commission") Act, 1997 against the order dated 14-1-2010 (the "Impugned Order") passed by the respondent. 2. During inspection of the books of accounts and other records of the appellant, it transpired that the appellant had invested Rs. 135 million in land, Rs.39 million in building and Rs. 13.45 million on vehicles, out of total assets base of Rs.187.450 million of the appellant as on 31-12-2008. The appellant did not provide the title documents of any of the aforesaid assets to the inspection team which created a doubt about the assets and whether they were in the name of the appellant. 3. Show-cause notice dated 10-9-2009 ("SCN") was issued to the Chief Executive Officer ("CEO") and Directors of the appellant under section 39 read with section 156 of the Insurance Ordinance, 2000 (the "Ordinance").…

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