Kathmandu. The Office of the Auditor General has recommended the Nepal Insurance Authority (NEA) to conduct an inquiry into the payment of insurance claims to the construction company of Bheri Babai Hydropower Project.
In the 62nd annual report of the Auditor General, it has been suggested to investigate and take necessary action against the employees and surveyors of the insurer regarding the payment of Compensation of Rs 86 million to the construction company by the National Insurance Company. A builder of Bheri Babai Hydropower Project had submitted an insurance claim to the National Insurance Company after the copper dam and other structures were damaged by the floods on June 15, 2017.
The surveyor had assessed the loss of Rs 88.83 million as interim payment and running bill of the project and the National Insurance Company had paid Rs 86 million.
According to the Auditor General, although the insurance company paid compensation to the construction company, the reinsurance company did not pay the amount for the reinsurance claim as the claim payment was suspicious. “The Authority should investigate and take necessary action against the insurer and surveyor for payment of more than the amount payable,” the Auditor General said. ’
Section 98(1) of the Insurance Act, 2079 provides that the Nepal Insurance Authority may regulate, inspect or monitor at any time in relation to the actions of the insurance, insurance intermediary, other insurance service provider or provider or any person or institution related to such insurer, insurance intermediary, or other insurance service provider.
