Kathmandu. The Non-Life Insurance Entrepreneurs’ Association has urged Nepal Insurance Authority (NEA) Chairman Sharad Ojha to correct the impractical provision regarding the sale of shares of the directors.
The office-bearers of the association made the request after meeting Ojha, who is also the chairman of the Insurance Authority’s office, today. A team of office-bearers led by NRA President Rajendra Malla has drawn his attention to the policy difficulties faced in the non-life insurance business.
The office-bearers of the association drew the attention of Chairman Ojha to the provision of not selling the shares owned by the directors in the company for one year even after resigning. They said that the directors are also investors like all the shareholders in the company and the provision of not being able to sell shares on the basis of being elected from the general assembly of the shareholders and representing them to the board of directors on their behalf is not justified immediately.
“We urge the government to amend the provision that prohibits any person from buying and selling any kind of shares of the same company for one year as long as he or she continues as a director,” the association said in a statement. ’
The association has also drawn the attention of Chairman Ojha to the direct share being given to Nepali reinsurance companies. Section 2 of the Insurance Act, 2079 states that reinsurance means a contract with one insurer to bear the risk of a portion of the risk that he or another insurer may bear. Similarly, section 80 of the Act also provides the same.
On the other hand, based on the provision that reinsurance established in the country will have to be compulsorily re-insured not less than the percentage fixed by the AUTHORITY, the provision of allocating 6-6 percent direct share to the two reinsurance companies established in the country should be allocated 6-6 percent direct share at the risk from the beginning. As the provision is not in line with the spirit of the Act, the Association has urged the insurance companies to make arrangements to re-insure only the risk other than the risk approved to be held by the insurance companies as per the provisions of the Act.
Chairman Malla and office-bearers Azad Shrestha, Ramesh Niraula, Bal Krishna Shrestha and Kunal Kayal were present in the meeting.
