Insurance Board Slaps Fine to 22 insurers Amid Failure to Meet Compliance

Kathmandu: The Insurance Board, regulatory authority, slaps fine to 22 insurers including 18 life insurers amid failure to submit financial audit report on due time.

The Board has fined 18 life insurance companies at the rate of Rs 10,000 to Rs 10,500 for not submitting the audit report for the fiscal year 2077/78. In addition, three non-life insurance companies and state-owned reinsurance company, Nepal Reinsurance Company, have also been fined.

According to the Board, LIC Nepal, Asian Life Insurance, Surya Life, Prime Life, Jyoti Life, Reliance Life, Citizens Life, Prabhu Life and Mahalakshmi Life Insurance have been fined Rs. 10,000. The committee has also fined the state-owned Nepal Reinsurance Company(Nepal Re) Rs. 10,000.

Similarly, National Life, Nepal Life, Rastriya Beema Sansthan, Guransh Life, IME Life, Union Life, Sun Nepal Life, Reliable Nepal Life and Sanima Life have been fined Rs 10,500 each. Among the non-life insurers, The Oriental Insurance, National Insurance and the state-owned Rastriya Beema Company have been fined Rs 10,500 each. These companies had earlier been fined Rs. 10,000 each by the Board for not submitting their financial statements for 2076/77 on time.

Pursuant to Article 25 of the Insurance Act, 2049 BS, the insurance company has to submit the financial audit report to the Board within 10 months from the end of each financial year. According to the provision, the insurance companies that have not submitted the audit report for the fiscal year 2077/78 have been fined Rs. 10,000 each. Similarly, the insurers who were also failure to submit the financial audit report of FY 76/77 have been find Rs. 10,500.

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