Kathmandu. Himalayan Reinsurance Company (HLIC) has started paying non-life insurance companies.

The Chief Executive Officer (CEO) of the non-life insurance company had complained that Himalayan Reinsurance Company has not made the payment time and again during the discussion with the Nepal Insurance Authority. After the CEOs of the non-life insurance companies complained to the NEA time and again, the authority had also informally directed the companies to pay the company on time.

The Himalayan Relay has started paying the Himalayan relay slowly after the recent developments. “Some non-life insurance companies were facing problems in operation if Himalayan Reinsurance Company did not make the payment on time,” said the CEO of a non-life insurance company. The CEO joked, “I haven’t seen a Himalayan Rico check yet.” Now it’s starting to be seen. Himalayan Relay has started cutting cheques for payment. ’’

The companies have said that they have started feeling relieved as the company has started making payments.

Businessman Deepak Bhatta has been arrested immediately after the formation of the Balen-led government. Shekhar Golchha, president of Himalayan Re, has resigned from his post on March 9. The Department of Money Laundering Investigation (PMLA) has arrested Bhatta, the founder shareholder of the company, on April 19.

He is currently being investigated. Meanwhile, the department raided Himalayan Reinsurance Company on Tuesday.

Hilton Hotel’s claim paid by Oriental Insurance

The Hilton Hotel was vandalised and set on fire during the Genji protests on September 23 and 24. So far, Hilton Hotel has not received the insurance claim. The hotel was built at a cost of Rs 8 billion and was insured for Rs 5 billion by The Oriental Insurance.

As per the provision, the claim for the loss caused by the riots should be paid to the Nepal Reinsurance Company. However, when the company provided such insurance to Himalayan Reinsurance Company, there was confusion in the payment of the insurance claim of Hilton Hotel.

An official of the Authority said that The Oriental Insurance has sent the insurance risk to other alternative reinsurance structures instead of the Nepal Reinsurance System.

The reinsurance agreement has been signed through Nepal Reinsurance Company instead of through other companies. As a result, the legal basis for payment of claim has become disputed.

So far, there is uncertainty about who will pay this claim.

Himalayan Re-Insurance is in trouble in the law, what is the ‘C’, ‘E’ and ‘G’ of the Act, what will the Authority do?