Kathmandu. Another question has arisen in the insurance sector after the government added the joint secretary of the Ministry of Physical Infrastructure and Transport to the Board of Directors of Nepal Insurance Authority as an ex-officio member.

With this decision of the government, the stakeholders have raised questions about how the role of the authority can be impartial in the issue of insurance related to government projects.

There will now be 6 members in the board of directors of NEA, which was 5 earlier. The government has claimed that the representatives of the Ministry of Physical Infrastructure have been brought to the Board with the objective of facilitating the insurance process related to government construction and infrastructure projects. However, experts in the insurance sector say that this will create a ‘conflict of interest’.

The government itself is the insured party in the government project. The question has arisen as to how the regulator will make impartial decisions when such projects are litigated, compensated or re-insured. However, they argue that a situation has arisen when the representatives of government projects remain on the board, they have become “arbiters in their own case”.

Criticism of the government has spread like chaff that it has set the stage of deciding its own case. However, no one is ready to speak formally on the government’s decision.

Experts in the insurance sector argue that this decision of the government will ease the insurance rate of the national project, its protection and conditions, so it would be against the principles of natural justice to become a judge in one’s own case in case of later litigation. Experts say that such a structure raises questions about the principle of fair trial.

The authority has also been regulated by the regulator and has also decided on disputes. If the government can sit on the board and participate in the decision-making process of its case, why not include the opposition? This question is also being raised.

Insurance experts say that the decision was taken in haste without adequate study and consultation while bringing the ordinance. Disputes related to insurance claims for big national pride projects and construction projects remain in the NEA and court for years. Experts say that impartiality will be weakened if the regulatory body is seen to be biased in such cases.

According to the new legal arrangement of the government, NEA will have 6 directors including the chairperson. Earlier, there were 5 people. In the event of a majority decision, the vote with the opinion of the chairman would be 3 and 2. Now it will be 3-3 in case of a vote. The opinion of the chairman will not be decisive as in 3 and 3 and 2.

This has also raised concerns that interest groups will dominate the project’s decision-making. At a time when the demand for making the regulatory body autonomous is increasing, the government is increasing the number of joint secretaries.

According to an expert in the insurance sector, it seems that the government is working in a policy way to make the decision in its favor. Earlier, the NRA was operated by the Joint Secretary at the Ministry of Finance and the Ministry of Law. Now the physical ones have also been added.