Kathmandu. The Nepal Insurance Authority (NEA) has taken action against 7 insurance companies and suspended a broker for three months.

The authority has taken action against 7 insurance companies in different cases.

According to NEA Spokesperson and Director Pujan Dhungel, the Board of Directors of NEA held on Friday decided to penalize 7 companies, take action against the Chief Executive Officer (CEO) of the companies and penalize a broker.

The action has been taken against Himalayan Re Insurance, Himalayan Life Insurance, Nepal Life Insurance, Asian Life Insurance, Neco Insurance, Oriental and Nepal Re Insurance.

Similarly, the license of Alliant Broker has been suspended for three months. Nepal Re, Himalayan Rea, The Oriental Insurance and Alliant Reinsurance Brokers have been suspended in connection with the Hilton Hotel insurance case. The same group has investments in Nepal Re, Himalayan Re and Aliant Reinsurance Brokers.

The company has also taken action against the CEOs of Nepal Re Insurance, Himalayan Re Insurance and The Oriental Insurance. According to Dhungel, the action was taken against the CEOs as per Section 134 (1B) of the Insurance Authority Act, 2079.

Why are NEA directors afraid to take action against half a dozen companies, including Asian Life, for violating the law?

The authority has taken action against the Hilton Hotel for violating its directives and regulations regarding the ‘mob riot and terrorism risk’ reinsurance and reinsurance liability.

The government has taken action against Himalayan Rea, Nepal Rea, The Oriental Insurance Company and CEO of the company for irregularities in the insurance policy following the fire and vandalism during the Genji agitation. Similarly, action has been taken against the CEO.

In this case, the license of Aliant Reinsurance Broker has been suspended for 3 months. According to a source at NEA, the liability of Himalayan Reinsurance Company was transferred to Nepal Reinsurance. The Authority had investigated the matter.

According to the investigation, the company had been paying the reinsurance charges to Himalayan Reel after insuring the Hilton Hotel.

Sources claim that action was taken after the demand was filed in Nepal. Sources claim that there is a problem in the intention of the CEO and chairman of Nepal Reinsurance Company after the government company was deliberately trying to sink it.

An official of the authority said, “The authority had to take action after trying to destroy the company in the setting of Nepal Rika high position.” Similarly, the insurance sector has been falling when the middleman is the chief. ’

The hotel was damaged to the tune of Rs 4 billion after it was vandalised during the Jenji protests. Out of this, Himalayan Reinsurance Company will pay Rs 2.25 billion, Nepal Reinsurance Rs 750 million and Oriental Insurance Rs 1 billion.

The NEA has also taken action against Asian Life Insurance, Nepal Life Insurance, Neco Insurance and Himalayan Life Insurance.

After serious errors were found during the monitoring, the authority had given seven days time to the insurance company to explain why it should not take action.

In a letter sent by the NEA to Asian Life Insurance at that time, it was stated that the insurer should not be fined Rs 200,000 as per clause (a) of sub-section (4) of Section 138 of the Insurance Act, 2079.

Section 67 of the Act states that a partnership shall not be a business or property acquisition. Section 67 (1) states that an insurer shall not carry on any business or property in partnership with its director, the sole family of the director, the primary shareholder, the financial interest, the insurer or any firm, company or institution or the head of the executive who is the managing agent of the insurer or is a shareholder.

Similarly, Section 67 (2) of the Act states, “Prior to the commencement of this Act, an insurer shall segregate his business or property in partnership with any firm, company or institution or executive head of any firm, company or institution or executive of its director, who is a managing agent or is a shareholder of the insurer or is a managing agent of the director, or has attached any property to such business or property within six months of the commencement of this Act.”