Kathmandu. The Public Accounts Committee (PAC) under the House of Representatives has found that the directives given to the Nepal Insurance Authority (INSURANCE) have not been implemented.
This was stated in its 23rd annual report made public by the Accounts Committee. According to the report, two directives given by the Insurance Authority were implemented in the 19th meeting of the Accounts Committee.
A meeting of the accounts committee had decided that the insurance companies could not be allowed or allowed to issue shares at a premium price higher than the face value as they had reserved 30 percent shares for the general public at the time of the establishment of the company. This provision is applicable to banks and financial institutions as per the Bank and Financial Institutions Act.
The audit committee had concluded that the insurance authority’s approval to sell shares to insurance companies at a premium was against the Insurance Act and against the interests of the general investors. After that, the meeting of the committee directed the Insurance Authority to correct the action. “However, the directive has not been implemented,” the report said.
Similarly, the same meeting of the Accounts Committee had concluded that the state was not benefiting from the surrender insurance amount and the rights of the insured could not be protected. The meeting had directed the Insurance Authority to deposit the remaining amount in the account of the concerned insured within three months as surrender price to the concerned insured by taking a low operating fee (not increasing to 25 percent) keeping in mind the interest of the insured who surrendered within the first three years. “This directive has also not been implemented,” the report said.
