Kathmandu. KATHMANDU: The Insurance Authority of Nepal (NIA) has concealed information regarding partial ban on the reinsurance business of Himalayan Reinsurance (Himalayan Re) company. The Insurance Authority, the regulator of the insurance sector of Nepal, has hidden the information of the regulatory action without publishing it on its website.
The fact that certain insurers are being supported by the regulators who are supposed to implement the Insurance Act proves how weak regulation is in Nepal’s insurance sector. India’s insurance regulator has suspended Himalayan Reel’s approval to operate as a cross-border reinsurer in India for this year. The information is available on the website of the Insurance Regulatory and Development Authority of India (IRDAI).
Since the reinsurance company brings business not only from domestic but also from the international market, its financial strength and regulatory action should be available on the website through a transparent medium so that anyone from all over the world can easily get information about it.
Clause 136 (40) of the Insurance Act, 2079 states that if the license of an insurer is suspended for a specified period or if the insurance business is partially or completely stopped, the notice should be published through at least two national level newspapers and the website of the Authority for the information of the general public. Although the authority had published a notice in 2 national dailies that sell a small number of markets, it did not publish such information on its own website.
Insurance Khabar did not find any information about action against Himalayan Re even after checking the website and web archive of the authority. On the contrary, information about the fines and advice taken against life insurers and non-life insurers before April is still available on the NRA’s website.
The regulatory section of the NRA has mentioned the provisions mentioned in sub-section 4 of Section 136 while preparing the comment on the regulatory action against the Himalayan River. According to these provisions, why did the responsible officials of the Authority not allow the publication of the information in the newspaper on the website?
Only Chandrakala Poudel, chairperson of the authority, or Sushil Dev Subedi, the executive director of the authority, can direct the government not to publish the information on its website.
The authority had investigated Himalayan Ree’s investment after the instructions of the Department of Money Laundering (DoP) stating that the investment amount was brought for the personal purpose of its promoters. After the investigation revealed irregularities, the authority had partially halted the Himalayan Reco reinsurance business from May 14, 2083 to mid-July.
Although the authority has not extended regulatory action against Himalayan Ree, it has not given any information in the public notice about its financial strength, risk bearing status and corporate governance. This is making it difficult for domestic insurers to decide whether to continue their business with Himalayan Rea.
