Kathmandu. In cases related to reinsurers and insurers, the CEOs who have been convicted under the Prevention of Money Laundering Act and the Insurance Act have been present at the office and have been conducting regular work.
Those who were suspended immediately after the charge sheet was filed on Thursday were present at the office on Friday at regular hours.
The case sheet has been filed at the Kathmandu District Court, Patan High Court and the Office of the Special Public Prosecutor against 2 reinsurance companies, 5 micro insurance companies and one life insurance company. Not only the chief executive officers who were implicated in the charge sheet filed on June 28 and 29, but the chief executive officer and other employees who were indicted on June 12 have been present at the office as a regular basis.
According to a senior official of the Insurance Authority, the chief executives of the insurance companies will be responsible for violating the provisions of the Insurance Act 2079 even though they are aware of the legal provisions of automatic suspension. He said, “The matter of ignoring the legal provisions even after verbally warning about the legal provisions would come under the ambit of regulatory action.”
Clause 142 of the Insurance Act, 2079 has the provision of automatic suspension from the post in case of an offense under Section 140. Apart from this, Section 27 of the Prevention of Money Laundering Act, 2064 states that if a case is filed under Section 22, such employee, office bearer or civil servant will be automatically suspended until the case is settled.
What will be the action:
The authority can take two types of action against those who violate the Insurance Act. In the first case, each can be punished with a fine of Rs 2 lakh individually. As a second option, if they are acquitted by the court in this charge and resume their posts, the NRA can also take action against them again.
