(1) Without prejudice to any prosecution that might be brought under this Act, where an inspector's report under section 22 discloses particulars of -

(a) non-compliance by an insurance undertaking with any provision of this Act, or

(b) a material defect referred to in section 22 (1) (b),

the regulatory authority may, as soon as practicable after receiving the report, give written directions to the insurance undertaking aimed at ensuring compliance or rectification of the material defect, as the case may be, subject to any terms and conditions that the regulatory authority may specify in the directions.

(2)

(a) An insurance undertaking that fails to comply with a direction under subsection (1) is guilty of an offence.

(b) It shall be a defence to a prosecution under paragraph (a) for the insurance undertaking concerned to prove that a direction under subsection (1) was unreasonable having regard to -

(i) the scope and terms of the provision of this Act that, in the opinion of the inspector, the insurance undertaking failed to comply with, or