Kathmandu. The government-owned reinsurance company Nepal Reinsurance Company (Nepal Re) has not been able to hold its general meeting for two fiscal years.
Nepal Relay Fiscal Year 2080. 81 and 2081. The general meeting of 82 is not being held. Nepal Re has not only delayed the financial statement and approved it, but has also failed to complete the audit work on time. As a result, the company has been failing to hold the annual general meeting on time.
The insurer itself has said that the accounts of Nepal Reco are not transparent and reliable. Nepal Reco Accounting System has not given reliable details about the accounts to be taken from the insurer for accepting the risk of the insurer, so Nepal Reco is running around saying that the amount is due to the old account with the insurer who has already completed the general meeting.
The insurers are refusing to pay the amount as the income and expense account has already been approved by the general meeting. According to the provisions of the Insurance Act, 2079, the insurer has to submit the quarterly financial statement to the authority within 30 days of the end of each quarterly period. The audited balance sheet and profit and loss statement for each financial year should be submitted to the Authority in the prescribed format within 6 months of the next financial year.
For institutional good governance and financial transparency, the Act itself stipulates the deadline for submission of quarterly and audit reports. Even though the Act clearly provides for this, the Insurance Authority of Nepal is helpless to take action against the insurers as per the law.
The issue of the insurer not submitting the transaction details on time and the accounts to be taken is yet to be cleared has been put forward time and again as an excuse. Once the problem identified as a problem is repeated, the delay will continue until the authority takes action against the leadership of the concerned insurer or reinsurer immediately and the opacity will increase.
Surendra Thapa, Chief Executive Officer (CEO) of Nepal Rica says that the general meeting of both the fiscal years will be called soon. “The Quantitative Regulatory Report Templates (QRT) of the company is in the process of being approved by the Insurance Authority,” he said, adding that the authority may also approve the QRRT by next week. ’
CEO Thapa said that the general meeting will be called immediately after that. “We will call the general meeting within about 15 days,” he said.
Pujan Dhungel, spokesperson and director of the Insurance Authority, said that the Nepal Relay could not be completed on time due to the delay in submitting the details related to the actuarial valuation. “Nepal Relay has just been relayed! The actuarial valuation details have been submitted,” she said, adding, “The Insurance Authority is preparing to approve the financial statements of the company along with the actuarial valuation soon.”
Dhungal also informed that the authority called the CEO of the company and alerted them after they did not submit the required details on time. “After that, the company submitted the details,” she said.
