Kathmandu: The Chairman of the Nepal Chamber of Commerce Rajendra Malla has expressed serious concern to the latest circular of the Insurance Board(IB) for obligatory re-insurance with national re-insurers.
The circular issued by the IB on 9 Mangsir, 2078 has created chaos in the insurance industry. He also blamed that, the IB has taken such steps by influence of the middlemen.
Addressing a program organized by Nepal Economic Journalists’ Society ‘SEJON’ on the occasion of Silver Jubilee, chairman Malla said that the risk has increased by issuing such circular without any interaction and feedback from the concerned parties. He said that the move of the IB has led to the deterioration of relations as the insurers and the foreign re-insurance companies.
He also expressed worries regarding the outstanding claims with the foreign re-insurers. The liability of billions of rupees is at risk when the regulatory suddenly issues such instructions without understanding the business character and practice of the Insurance Industries.
He questioned, “How can two companies with a capital of Rs. 17 billion bear the burden of billions of rupees.
