Kathmandu. The Nepal Insurance Authority (INSURANCE) has sought clarification from all life and non-life insurers on audit and social responsibility issues.
NEA Chairman Sharad Ojha has asked the supervisory branch to seek clarification from the life and non-life insurers without the decision of the board of directors. In the letter issued on May 29, it has been directed to submit an explanation within seven days.
According to Section 87 of the Insurance Act, 2079 BS, the audit has to be carried out within three months as per Sub-section 1 and submit it to the AUTHORITY within 30 days of the audit as per Sub-Section 5. Some of the insurers last fiscal year 2080. Although the insurance assessment of 81 has not been submitted, the insurance assessment of some has been approved, but the audit report is under preparation. Some have already held general meetings and some have announced general meeting dates.
Although the provisions of the Act are binding, there is a situation beyond the control of the insurer due to the delay in the approval of the insurance assessment due to the issues of actuarial evaluation, directives of the authority, opinion of the insurer, future bonus rate and profit sharing, management of risk-based capital, etc.
According to section 45 (2) of the Institutional Good Governance Guidelines, 2080 issued by the Insurance Authority, there is a provision to take action or fine according to Section 138 of the Insurance Act, 2079 for not spending on social responsibility.
The then Insurance Committee on July 1, 2019. 77 and 2077. The court had taken action against the insurers who did not submit the audit report under the provisions of the Act, 2049.
The unspent amount of social responsibility is deposited in the same fund. Compared to commercial banks, insurance companies have less amount for such funds. On the other hand, in its 75-year-long history, the NRA has implemented the provision of social responsibility only three years ago, so the insurer has not been able to accept it as a culture.
Life insurers, big in the size of commercial transactions or established in 2074 BS, have been generous in spending money on this head, on the contrary, some insurers have clenched their fists.
General Assembly of non-life insurers
Shikhar Insurance, Siddhartha Premier, IGI Prudential, Himalayan Everest, Nepal Insurance, Sanima GIC, Sagarmatha Lumbini Insurance, Star Micro, Trust Micro and Neco Insurance concluded on May 15. Government-owned National Insurance Company fiscal year 2074. Only up to 75 years of the General Assembly has been held.
Similarly, Nepal Micro Insurance and NLG Insurance have been scheduled to hold their annual general meetings on May 15 and June 15 respectively.
General Assembly of life insurer
SuryaJyoti Life, Nepal Life, IME Life, Sanima Reliance Life, Guardian Micro Life and Citizen Life have already held their agm on March 11, 2019 and March 15, respectively. Crest Micro Life will hold its general meeting on June 29, Prabhu Mahalakshmi Life on June 26, Liberty Micro on June 15, Reliable Nepal Life on June 15 and National Life on June 15.
The General Assembly of Himalayan Reinsurance is being held on June 15. The date for the agm of the state-owned Nepal Reinsurance Company has not been finalized yet.
