Insurance Authority reprimands Nepal Life over Employees’ Bylaws

Kathmandu: Nepal Insurance Authority reprimands Nepal Life Insurance (NLIC) over the violation of labor law and amendments to the Employee’s Regulations. The Authority has instructed the life insurer to correct the provision of the amended Employees’ Regulation and continue the previous allowances and facilities provided to the employee.

The Board of Directors (BODs) of NLIC had passed and implemented the Employees’ Regulations without the approval of the Nepal Insurance Authority. According to the prevailing provision, any insurer must get consent from the regulatory authority to amend the article of association, memorandum of association, and bylaws.

The employees filed a complaint to the Authority seeking intervention on the withdrawal of the Employees’ Regulations. The Labor Act 2074 prevents employers to curtail any facilities, salary, or allowances once offered to the employees.

The Authority has instructed to amend the new Employees’ Regulations abiding by the Labor Act 2074 and prevailing practices and submit within seven days.

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