Kathmandu. The Insurance Board(IB) has ruled that the promotion of Deputy General Manager of Nepal Life, Amit Keyal, was illegal and directed Nepal Life Insurance to withdraw the promotion. The Board of Directors of the IB has also directed to promote him only as far as the prevailing rules and regulations. The decision was taken at a meeting of the BODs of the IB held on last Friday, said Rajuraman Poudel, spokesperson of the IB.
Along with the decision of the board, the IB has directed the company to revoke his promotion and maintain it as far as the rules allow. The insurance sector regulator has already sent a letter to the company to implement the decision of the board. Now, Keyal is demoted to Assistant General Manager.
Insurancekhabar.com had first raised the issue of illegal promotion of Keyal violating the provisions of Corporate Governance Directive 2075(CGD 2075) of the IB. Keyal was appointed to the post of Assistant General Manager on a contract basis on July 7, 2008. Later he was promoted to DGM, two levels up, within a year.
The CGD 2075 stipulates that one of the minimum qualifications prescribed for the appointment of a departmental head should be Chartered Accountancy or a similar examination and have working experience in the insurance and banking sector as a manager or similar for at least one year. Though CA Keyal was directly appointed to AGM, he had no work experience in insurance or banking.
Keyal, who was initially appointed to the top management level of Nepal Life after being appointed in the contract service for six months, was promoted from the post of Assistant General Manager to the post of Deputy General Manager. The hierarchy in Nepal Life are Assistant General Manager, Senior Assistant General Manager and Deputy General Manager respectively.