Kathmandu. It has been more than a month since himalayan reinsurance company, a private sector-promoted reinsurance company, held its annual general meeting for the last fiscal year. The board of directors of the state-owned Nepal Reinsurance Company (Nepal Re) is yet to decide the date for the agm.
Himalayan Relay has decided to distribute 4.74 percent dividend and held its fourth general meeting on June 15. fiscal year 2081. Even after the completion of 82, Nepal Riley last fiscal year 2080. There is no general assembly of 81.
Not only for the Annual General Meeting but also in the publication of the quarterly report, Nepal Has lagged behind the rival company Himalayan Ri. Himalayan Relay last fiscal year 2081. The third quarterly report of 82 has been published on June 15. After the publication of the third quarterly report of Himalayan Relay, Nepal Relay has finally published its second annual report on June 15.
The insurer himself has said that the accounts of Nepal Ri are not transparent and reliable. Nepal Rico’s accounting system has not provided reliable details about the accounts to be taken from the insurer for accepting the risk of the insurer, so nepal relay is in a hurry with the insurer who has completed the general assembly, saying that the amount for the old account is due.
The insurers are refusing to pay the amount as the income and expenditure account has been approved by the General Assembly while claiming the amount to be paid late by Nepal Relay.
According to the provisions of the Insurance Act, 2079, the insurer has to submit the quarterly financial statement to the AUTHORITY within 30 days of the end of each quarterly period. The audited balance sheet and profit and loss details of each financial year should be submitted to the NEA in the prescribed format within six months of the next financial year.
For institutional good governance and financial transparency, the act has set a deadline to submit quarterly and audit reports. Although there is such a clear provision in the Act, the Nepal Insurance Authority seems to be helpless to take action against the insurer as specified by the law.
The issue of the insurer not submitting the transaction details on time and yet to settle the accounts to be taken has been put forward as an excuse time and again. Once the problem has been identified as a problem is repeated again, the delay will continue until the AUTHORITY takes action against the leadership of the concerned insurer or reinsurer immediately and the opacity will increase.
Himalayan Relay, which has not completed four years of its establishment, has not yet received an international credit rating even after it was rated by the International Credit Rating Agency for the second time.
The state-owned reinsurance company handed over the rating to MM Best Asia Pacific Singapore on September 27, 2023, about two years ago. It has not come to the public notice whether MM BEST has delayed the credit rating or does not want Nepal Relay to make the rating report public as it has not received the expected rating.
Chief Executive Officer (CEO) of Nepal Re, Surendra Thapa, said that there was a delay in holding the annual general meeting due to the delay in business data from insurance companies. “We have also informed the Insurance Authority about this,” he said, adding, “We will probably convene the annual general meeting soon.” ’
