Kathmandu: The second amendment of the Directives on Institutional Governance For Insurers 2075 issued by the insurance regulatory authority has a provision that an individual who has served at least two term as a member of Board of Directors or Chairman of any insurance company cannot be re-appointed as a director or chairman.
On 13th Chaitra 2078, the Nepal Insurance Authority (formerly known as Insurance Board) had issued the second amendment of the Guidelines and on 10th Jestha 2079, the third amendment was issued. It is clearly mentioned that a person who have served as director or chairman for two terms before the date of issuance of the revised Directives, cannot be re-appointed as director or chairman.
But the insurance authority is helpless to implement its own Directives. Immediately after the second amendments in the Directives, Nepal Life Insurance Company(NLIC)’s AGM had re-appointed Chairman Govind Lal Sanghai, Directors Kamalesh Agrawal, Parul Dhakal along with some other members of BODs. Sanghai, Agrawal and Dhakal have served more than two terms in the BODs of Nepal Life.
More interestingly, the chairman of the Insurance Board, Surya Prasad Silwal, himself had administered the Oath of Office of NLIC’s Chairman Sanghai which was in violation of the amended Directives om Institutional Governance For Insurers 2075. Sanghai was reelected as member of Directors by the 21st annual general meeting. Sanghai has been the member of BODs since inception of the company.
It seems like the Insurance Board’s authority had issued the Directives to bargain and fulfill their vested interest from the member of BODs of insurance companies along with NLIC.
Parul Dhakal, who has been representing the promoter shareholder in the BODs, now has been appointed as independent director. In the name of an independent director, the promoters have chosen their own fellow. Kamlesh Agarwal, another member of BODs, who has already served more than 15 years as member of BODs of NLIC representing the public shareholder’s group has been re-elected as a member of the BODs from the promoter shareholder’s group.