Insurers no more allowed to keep CEO post vacant for long

Kathmandu: Life and non-life insurers will no longer be allowed to operate the company without appointing a chief executive officer for long time. The Insurance Board(IB) on Thursday issued the first amendment to Corporate Good Governance Directives for Insurers 2075 and restricted any insurance company from operating without a chief executive for a period of more than three months.

In the amendment of the Good Governance Directive, in case of vacancy in the post of Chief Executive Officer of the insurer, provision has been made to appoint within three months from the date of vacancy.

The IB has amended the directive to curb the tendency of insurance companies to run the company through acting CEO or officiating CEO for a long time and to keep the post of CEO vacant.

The new provision will direct impact the Nepal Life Insurance Company and Nepal Insurance Company Limited. Both of these company have no CEO appointed till date.

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