Kathmandu: The Insurance Act 2079 repealed the Rastriya Beema Sansthan Act 2025 and provided a one-year’s deadline for the Rastriya Beema Sansthan to convert into a public limited company. Section 172 of the new Insurance Act states in sub-section 2 that ‘The Rastriya Beema Sansthan shall be converted into a public limited company within one year from the date of execution of the act.’
Sansthan is the only state-owned life insurance company. As the Sansthan is running under a separate Act, the regulatory body Insurance Board has very limited room to control and regulate the Sansthan. Therefore, the capital plan issued by the Board 5 years ago has not yet been implemented by the state-owned insurer. It has been failure to conduct its financial audit for last five years.
Now, the execution of new Insurance Act will bring the Sansthan under the radar of the Insurance Board(later to be converted into Insurance Authority).