Kathmandu: Insurance Board has revoked the provision of pre approval for the purchase of fixed assets.
Issuing a fresh circular the regulatory authority has allowed the insurance companies to purchase fixed assets except land and building without any approval.Companies will be able to purchase fixed assets within a maximum of 30 percent of their net worth.Such purchase must be made within the annual limit of budget approved by the board of directors.The BOD will be fully responsible for such purchase.
There was wide criticism from the insurance companies for the provision of pre approval to buy any assets. Earlier, insurance companies used to submit an application to the Insurance Board for pre approval and await almost for one month to get the approval. Sometimes, the officials used to take undue advantage from the insurance companies to issue pre approval.
With the vision imposed by the newly appointed Chairman of Insurance Board, Surya Prasad Silwal, now the board is transfering itself to a facilitator contrary to its previous image of obstructure.
Chairman Silwal wants his officials to focus more on regulatory activities than micro management and controlling operational activities of insurance companies.