Regulator may slap fine to ten life insurers amid failure to submit audit report

Kathmandu: The majority of life insurance companies are struggling to finalize their financial audit report for the last financial year 2078-79. The delay may cause a slap fine to the life insurers.

According to the Insurance Act 2080, an insurer is subject to a fine for the failure to get the approval of a financial audit report within six months of the completion of a financial year.

Nepal Life Insurance. LIC Nepal, Gurans Life, Union Life, Prime Life, Reliance Life, Sanima Life, Prabhu Life, and Mahalaxmi Life have yet to complete their financial auditing for the last FY. The state-owned life insurer, Rastriya Beema Sansthan has not been able to accomplish its financial audit since FY 2072-73.

Despite the pending financial audit report, Gurans Life, Prime Life, and Union Life have merged and already initiated integrated business under the new name Himalayan Life Insurance. Similarly, Sanima Reliance Life came into existence through the merger of the former Sanima Life and Reliance Life Insurance. Mahalakshmi Life and Prabhu Life are at the last stage of integrated business after the final approval from the regulatory authority of the merger.

According to the Authority, the financial audit report for FY 2078-79 of Asian Life Insurance, Met Life(Alico), IME Life, Citizen Life, Surya Jyoti Life, National Life, and Reliable Nepal Life has already been approved.

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