Kathmandu. Nepal Insurance Authority (NEA) has taken action against insurers and reinsurers flouting the rules.
The NRA has taken action against Himalayan Life Insurance, Nepal Life Insurance, Asian Life Insurance, Oriental Insurance, Himalayan Reinsurance and Nepal Reinsurance Company. “Action has been taken against these companies for violating the Insurance Act,” said Pujan Dhungel Adhikari, spokesperson and director of NEA, adding, “The chief executive officer of Nepal Reinsurance Company has been alerted.” The remaining insurance companies have been fined Rs 2 lakh each. ’
According to Dhungel, the license of the Alliant Reinsurance Broker Company has been suspended for 3 months.
The authority took action against the insurers as per Section 138 (4) of the Insurance Act, 2079. As per the provisions of this Act, if the insurer does not comply with the directives and orders issued by the Authority or carries on the insurance business without fulfilling the rites as per the Act or preparing false details, the authority can impose a fine of up to Rs 2 lakhs for the first time, Rs 25 lakhs for the second time and Rs 5 million from the third time onwards.
