Section 18Section 18

s. 18

18 (1) The undertaking appertaining to the general insurance business or the life insurance business of an insurer which is transferred to and vests in a subsidiary Corporation under clause (1) of Article 17 shall, subject to the provisions of this Order, be deemed to include all assets, rights, powers, authorities and privileges and all property, movable or immovable, cash balances, reserve funds, investments, deposits and all other rights and interests in, or arising out of, such property as were immediately before the commencement of this Order in the ownership, possession, power or control of the insurer in relation to the undertaking within the territory of Bangladesh or in relation to the business of such undertaking outside Bangladesh, and all books of account, registers, records and all other documents of whatever nature relating thereto, and shall, subject to the provisions of this Order and unless the Government otherwise directs be deemed to include all borrowings, liabilities and obligations of whatever kind then subsisting of the insurer in relation to such undertaking : Provided that the liabilities and obligations of the insurer in relation to such undertaking shall, unless the Government otherwise directs, not include any liability or obligation under any policy issued by him to a person who is not a citizen of Bangladesh. (2) Where any assets or other properties vesting in a subsidiary Corporation under clause (1) of Article 17 are subject to any trust, the assets or other properties shall be deemed to have vested in the subsidiary Corporation free from any such trust. (3) If, according to the laws of any country outside Bangladesh, the provisions of the Order by themselves are not effective to transfer or vest any asset situated in that country which forms part of the undertaking of an insurer to, or in, the subsidiary Corporation concerned, the affairs of the insurer in relation to such asset shall, on and from the commencement of this Order, stand entrusted to the chief executive officer for the time being of the subsidiary Corporation concerned, and the chief executive officer may exercise all such powers and do all such acts and things as may be exercised or done by the insurer for the purpose of effectively transferring such asset. (4) The chief executive officer of the subsidiary Corporation concerned shall, in exercise of the power conferred on him by clause (3), take all such steps as may be required by the laws of any such country outside Bangladesh for the purpose of effecting such transfer or vesting, and may either himself or through any person authorised by him in this behalf realise any asset of the insurer. (5) Unless otherwise expressly provided by or under this Order and unless the Government otherwise directs, all contracts, deeds, bonds, agreements, powers of attorney, grants of legal representation and other instruments of whatever nature subsisting or having effect immediately before the commencement of this Order and to which an insurer whose undertaking has been transferred to and vested in a subsisting Corporation under clause (1) of Article 17 is a party or which are in favour of such insurer shall, in so far as they relate to such undertaking of the insurer, be of as full force and effect against or in favour of the subsidiary Corporation, and may be enforced or acted upon as fully and effectually as if in the place of the insurer the subsidiary Corporation had been a party thereto or as if they had been entered into or issued in favour of the subsidiary Corporation. (6) Subject to the other provisions of this Order and unless the Government otherwise directs, any suit, appeal or other proceeding of whatever nature pending on the date of the commencement of this Order by or against an insurer in relation to any of his undertakings shall be deemed to be suit, appeal or other proceeding pending by or against the subsidiary Corporation in which the undertaking has vested under clause (1) of Article 17, and may be continued or prosecuted and enforced by or against that Corporation. (7) If any question arises as to whether any undertaking appertains to the general insurance business or the life insurance business of an insurer, or whether any asset, right, power, authority or privilege or any property, cash balance, reserve fund, investment or deposit is in the ownership, possession, power or control of an insurer in relation to any of his undertakings transferred to a subsidiary Corporation, or whether any borrowing, liability or obligation of insurer relates to any of his undertakings transferred to a subsidiary Corporation, or whether any contract deed, bond, agreement, power of attorney, grant of legal representation or other instrument related to any of the undertakings of an insurer transferred to a subsidiary Corporation or whether any suit, appeal or other proceeding is pending by or against an insurer in relation to any of his undertakings transferred to a subsidiary Corporation, the question shall be referred to the Government whose decision shall be final. (8) Where any undertaking of an insurer does not relate exclusively to his general insurance business or life insurance business of where such undertaking relates to both general insurance business and life insurance business of the insurer, such undertaking shall be transferred to such subsidiary Corporation, in such manner and to such extent as the Government may, by order, direct. (9) The Government may, for the purpose of removing any difficulty arising out of, or in connection with, the transfer of any undertaking of an insurer to a subsidiary Corporation or any matter supplemental or incidental to, or consequential upon, such transfer or any other matter specified in this Article, make such order as it considers expedient and any such order shall be deemed to be, and given effect to, as part of the provisions of this Order.