Kathmandu. KATHMANDU: Nepal Insurance Authority (NE TAG_OPEN_em_14 A) has warned all licensed insurers to submit quarterly investment report as per the investment directive 2082 ({TAG_CLOSE_em_14}}}.
Clause (t) of sub-section 3 of Section 14 of the directive states that the investment related quarterly report should be certified by the Board of Directors of the insurer and submitted to the Authority within 30 days of the end of each quarter.
The Board of Directors of NEA had approved the Investment Directive 2082 on September 1, 2 TAG_OPEN_em_13 018. As per the directive, the insurer was supposed to submit the report within November 12. The authority issued a circular warning the insurers after it was found that most of the insurers had not submitted their reports.
Sub-section 3 of Section 14 of the Directive provides that the insurer should establish an investment management unit under the top management level employee who has experience in investment related work for investment management.
The authority has relaxed the provision of obtaining prior approval for the investment of the insurer through the directive {{TAG_CLOSE_em_11 TAG_OPEN_em_11}} and has made the investment unit and the Board of Directors responsible. In order to prevent misuse of the directive, the authority has adopted a policy of indirectly monitoring the investment decisions of the insurer through the study of the quarterly report.
Apart from this, clause 18 of the directive } states that the insurer has to submit the investment details on the regulatory portal of the Insurance Authority within seven days of the end of each quarter.
