Kathmandu. The Nepal Insurance Authority (NIA) has been actively taking action against the insurers in recent times. The authority has taken initiative to take action especially in the case of misuse of capital and funds of reinsurance, life and micro insurance companies. <\/p>\n
The authority has taken regulatory action against 16 companies in the past two months. All types of licensed insurers and reinsurance brokers are also the target of this action. <\/p>\n
As many as 6 non-life insurance companies have been found accepting the risk at the lowest insurance rate while issuing insurance policies for the Tarai-Madhesh Fast Track Project led by the Nepal Army. In a meeting of the Board of Directors held on May 17, the authority imposed an institutional fine of Rs 2 lakh on each company. It has also issued a written warning to the CEO, holding him personally responsible. This is the first time such a warning has been issued. <\/p>\n
Earlier, on April 29, the Board of Directors of NEA decided to take action against non-life insurers and reinsurance brokers along with fines. The board of directors of Nepal Electricity Authority (NEA) has also decided to suspend the reinsurance business of Himalayan Reinsurance until Ashad 2083. This is the first time that the business of an insurer has been banned after the implementation of the Insurance Act, 2079. <\/p>\n
Similarly, on Chaitra 13, 2082, the authority decided to take action against all types of licensed organizations and CEOs at once. The NRA has imposed a fine of Rs 2 lakh on a reinsurer, CEO of a reinsurer, non-life insurer and life insurer. This is probably the first time that the Chief Executive Officer has been fined personally after the implementation of the Insurance Act, 2079. Earlier, the authority had been taking action against the Chief Executive Officers only to warn them. <\/p>\n
The authority has not taken the decision to take action against the insurer, reinsurer, CEO and reinsurance broker on the basis of the discrepancies found in the investigation initiated by the NRA. On the contrary, the investigation was initiated and action was taken after some other agency gave instructions. The Commission for the Investigation of Abuse of Authority (CIAA) and the Central Investigation Bureau (CIB) of Nepal Police have taken action against the CIB on issues ranging from the misuse of shares and funds of seven companies including Himalayan Reinsurance Company to the issue of insurance policies at low rates and unauthorized discount on insurance premiums. <\/p>\n
The NRA has also been compelled to take action against other issues that have been exposed by the mass media rather than the NRA itself has not investigated and taken action.<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. The Nepal Insurance Authority (NIA) has been actively taking action against the insurers in recent times. The authority has taken initiative to take action especially in the case of misuse of capital and funds of reinsurance, life and micro insurance companies. The authority has taken regulatory action against 16 companies in the past two […]<\/p>\n","protected":false},"author":5,"featured_media":245582,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45159,45099],"tags":[],"class_list":["post-302388","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-news-en","category-regulatory-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/302388","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=302388"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/302388\/revisions"}],"predecessor-version":[{"id":302389,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/302388\/revisions\/302389"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/245582"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=302388"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=302388"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=302388"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}