Laws of Bangladesh

The Insurance Act, 1938

( ACT NO. IV OF 1938 )

Special audit
1[12A. (1) The books and records of every insurer, in the case of an insurer specified in sub-clause (a) (ii) or sub-clause (b) of clause (9) of section 2 in respect of all insurance business transacted by him, and in the case of any other insurer in respect of the insurance business transacted by him in Bangladesh, shall be audited annually by an auditor or auditors to be appointed every year by the Chief Controller of Insurance for making such investigation and submitting such reports as may be prescribed:
Provided that the auditor or any of the auditors appointed under this section for any year of account shall not be the auditor or auditors employed by the insurer for an audit under the Companies Act, 1913 or under section 12 of this Act for that year of account.
(2) An auditor appointed under this section shall have a right of access to all such books of account, registers, vouchers, correspondence and other documents of the insurer, and shall be entitled to require from the directors and officers of the insurer such information and explanation, as may be necessary for the performance of his function and duties under this section.
(3) Every report prepared by an auditor or auditors appointed under this section shall be submitted in quadruplicate to the Chief Controller who may take such action thereon in accordance with the provisions of this Act as he deems fit.
(4) An auditor appointed under this section shall be paid by the insurer such fees as may be prescribed and in prescribing such fees regard shall be had to the size of the insurer and the class or classes of business transacted by him.
(5) The fee payable by an insurer under sub-section (4) shall be paid to the auditor within such time as may be specified by the Chief Controller.]

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    Sub-sections 9, (9A) and (9B) were substituted for the original sub-section (9), by section 4 of the Insurance (Amendment) Act, 1940 (Act No. XX of 1940)
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