Kathmandu. The Government of Nepal has amended the Insurance Act-2079 through an ordinance stating that members of the board of directors of the Nepal Insurance Authority (NEA) other than the chairman will not be suspended if they are under investigation.
The government has amended the word ‘chairperson’ in Section 12 of the Insurance Act-2079 BS to replace the words ‘chairperson’ or ‘member’ with clauses (1) and (2). Prior to the amendment, the Clause of the Insurance Act-2079 BS had the provision of automatic suspension of such a person until the end of the period of investigation after the formation of an investigation committee to investigate against the chairperson or a member. Now that only the chairman has been appointed, the board members will not be suspended on the basis of the formation of the investigation committee.
With the amendment of the Act, if the government forms an investigation committee to relieve the chairperson from his post, he will be suspended only until the investigation period ends. The remaining members are exempt from this provision.
