IB Scraps The Provision of In-principle Approval for Financial Report Preparation

Kathmandu: The Insurance Board has scrapped the provision to obtain in-principle approval for the preparation of annual financial reports by the insurance companies. The Board has instructed all life, non-life and reinsurance companies not to take in-principle approval from now onwards.

Prior to this, insurance companies had to obtain in-principle approval from the insurance regulatory authority before the preparation of annual financial reports. Now, the new provision will ease in the preparation and finalization of financial reports for the insurers. Prior to the new provision, the insurers were forced to wait for more than a month to get in-principle approval from the regulatory body.

Now, the chief finance officer and the chief executive officer of the insurance company will be held responsible for the accuracy of the financial reports. In order to ensure that insurance companies prepare financial reports in accordance with the prevailing provisions of the Insurance Act, regulations and guidelines issued by the Board, including the distribution of assets, liabilities, income, expenses, distribution of management expenses, distribution of income from investments and others, except for the liabilities arising from the actuarial evaluation of financial statements, the CEO must take into account of all the provisions.

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