. Nepal Insurance Authority (NEA) has decided to take action against 6 insurance companies.

The NRA had carried out an on-site monitoring some time ago. It said that it was preparing to take action after some serious lapses were found during the inspection.

The company has taken action against Neco Insurance, Asian Life Insurance, Nepal Re Insurance, Prabhu Insurance, Himalayan Re Insurance and Sanima GIC Insurance.

The company has already sought clarification from these companies in the first phase. According to a source at the NEA, a letter was issued on Friday asking all the 6 companies to explain why action should not be taken as such serious lapses were seen.

The companies have also been given time to respond. A source at the NRA said that further action would be taken if the answer was not received in a satisfactory legal manner within the stipulated time. The authority, however, did not want to disclose what kind of lapse was seen during the on-site monitoring.

“Now we have sought clarification as to why action should not be taken against the companies in the first phase,” a source at the authority said, “If the proper response is not received within the stipulated time or if the complaint is found to be very serious, then the board of directors will take a decision and take further action.” ’

According to sources, some companies have to take action after taking a decision from the board of the authority.