Kathmandu. Nepal Insurance Authority (NEA), which has been supervising the site and non-site, has been conducting on-site and non-site supervision for the current fiscal year 2081 BS. In the last 10 months, 38 on-site inspections have been carried out.
The Insurance Authority, which is responsible for regulating the insurance sector, conducted an on-site inspection of the insurers on the basis of risk. According to the data, nea has carried out a total of 20 on-site inspections including four life insurers, 13 non-life insurers and three micro-life insurers till April.
A total of 12 emergency inspections have been carried out on five life insurers, four non-life insurers, two reinsurers and one micro-life insurer. During this period, the AUTHORITY has not carried out an emergency inspection at the office of the micro-life insurer.
According to the NRA, an emergency inspection has been carried out at the insurer’s office in case it is necessary to investigate the periodic reports submitted by the insurer, regular transaction details as well as complaints received from the service providers or other regulatory bodies.
In the 10 months of the current fiscal year, two or three inspections have been carried out at the same insurer’s office for the purpose of risk seen in the business of the insurer, weak internal control system, money laundering and investigation of complaints. During this period, nea has carried out on-site inspection of the offices of six life insurers regarding prevention of money laundering and financing of terrorist activities.
In the first phase, the AUTHORITY has been seeking a written explanation from the insurer on the issue of caffeine after the on-site inspection. It has also called the head of the concerned department and chief executive officer of the insurer to the office and asked for a written or oral explanation on sensitive issues like money laundering.
Action depends on the chairman’s position
After receiving the written reply from the insurer, the department has the practice of preparing a report with opinion and submitting it to the board of directors through the chairman, but since the Insurance Act 2079 has made the chairman the supreme leader, the content to be submitted to the board of directors for decision has become very low.
Since the chairman of the AUTHORITY, who is also the chairman of the board of directors of the AUTHORITY, is the executive, the report related to the matter he has reluctated is not submitted to the committee, it is submitted to the concerned department. On the basis of the chairman’s direction or on the basis of the decision of the board of directors, the decision regarding action, advice or penalty is taken on the insurer.
Although the AUTHORITY has made public the statistical information related to supervision, it has not made public the information about what instructions were given to which insurer or action was taken.
A total of 37 companies including 14 life insurers, 14 non-life insurers, four micro-life insurers, three micro-life insurers and two reinsurers are in operation.
