Kathmandu: Chairman of the Insurance Board, Surya Prasad Silwal has expressed his dissatisfaction over the unethical practices of life insurers. Addressing a formal program organized by Reliance Life Insurance Company Limited, Silwal claimed that there’s many lacking under insurance underwritings.
He has urged life insurers to strict follow the underwriting guidelines while accepting a proposal. He said that life insurers easily accept any proposal without proper financial and medical underwriting and later deny claim.
Referring to the unhealthy competition between life insurance companies, Chairman Silwal said a CEOs should not do business just to prove their tenure successful in terms of insurance premium income or profitability. “It’s not just a matter of a CEO’s success in his four-year term,” he said.
He accused the CEOs not being honest with their duties to manage risk. He said, “The CEOs must sincerely look into the underwriting practices and take necessary action to correct it.”
On the other hand, he has ridiculed the situation where insurance companies use all possible means to bring in new business but do not pay attention while paying the claim. This is the reason why the credibility of insurance is being lost. The Board had also instructed the chairman and CEOs of the insurance company to pay the claim by considering the situation.
While the Insurance Board held a nationwide insurance awareness campaign with the local government, everyone had made complaints about the delay in claim payment. Raising this issue, Chairman Silwal has requested to give priority to claim payment. He says the reason for making this year a claim settlement year amid insurance companies are losing credibility.