Kathmandu: Insurance regulatory authority of Nepal, the Insurance Board has warned the state-owned general insurer, Rastriya Beema Company(RBC) to take stern action for defying directives and instruction of the Board.
Addressing the 9th annual even, Surya Prasad Silwal, the chairman of the Board, today warned to take legal actions if the provision of minimum paid-up capital is not met within the deadline. He said that, no more excuse will be given to the state-owned insurer, it must abide by the rules and regulations.
According to the new provision, a general insurer must maintain at least Rs.2.5 billion paid-up capital by the end of Chaitra 2079. Only 9 months left for the completion of deadline but no preparations are underway by the state-owned only general insurers. It’s current paid-up capital is Rs.25 crore only.
Amid poor financial regulations RBC has not been able to conduct its annual general meeting for years. Chairman Silwal further clarified that the Board will not accept any fiscal report from the company unless approved by the Office of the Auditor General.