Kathmandu. The regulatory body Insurance Authority has remained a mute spectator even after half a dozen insurance companies have been without leadership for the past 11 days. The NEA has been a mute spectator to 5 Micro Life Insurance and 1 Life Insurance for the past 11 days in the absence of a Chief Executive Officer (CEO) or acting CEO in his absence.

It has not been able to direct the immediate appointment of a worker in such companies.

5 Micro Life does not have a director and top management. However, the authority has not been able to say that the first level employees of Himalayan Life Insurance should be given the responsibility of acting and the authority should also be informed about it.

The Authority has only informed the Chairman of Himalayan Life Limited, Narayan Bajaj, about the provisions contained in Directive 33 (3) of the Corporate Good Governance Directive of the NRA. According to the directive, senior employees can be appointed for three months. A source at the authority said that the company has only been informed about this arrangement.

“In this situation, the authority should not only inform the company about the provisions in the directive, but also instruct the senior employees to give duty as per this rule,” said an official of the authority. Whether it is because they have to take some benefits or their relatives are employees of that company, they have only informed about the instructions. ”

The employees said that if the company is going to collapse, the authority should clearly give written instructions to work by specifying the worker. Earlier, the authority had directed the chairman of the company to verbally give the work. Chairman of Himalayan Life Bajaj has not implemented this verbal directive.

Sources close to the NRA claim that they were helpless even after not implementing the directive. Now, complaints are increasing that the day-to-day operations of the company are being directly affected. From the commercial point of view, the month of June is also a very sensitive month. In such a situation, the employees complain that the existence of the company is questioned due to the lack of a leader in the company.

Agents have started complaining that it is difficult to work in the company due to the lack of an operations manager. The Professional Insurance Owners Association of Nepal has launched a protest demanding the appointment of an immediate acting chief executive officer of Himalayan Life Insurance. In the first phase, the union has announced a protest till the 13th of this month. Their demand is to appoint an acting CEO in the company. However, the chairman has not agreed.

About half a dozen insurance companies are now in a very challenging situation to operate after the top officials of insurance companies under the cover of the insurance business were involved in illegal financial transactions. In some companies, the directors and managers have left after being sued, while the directors of some companies have also started leaving.

KATHMANDU: Kalika Fincorp Pvt. Ltd., the promoter of Himalayan Reinsurance Pvt. Ltd., has recalled Deepak Kumar Mishra, the promoter of Himalayan Reinsurance Company. Similarly, another proprietor Prithviraj Thapa has also been called back by Tele Direct Pvt Ltd.

The company’s acting CEO Mukesh Kumar Kapoor did not stay on duty even for a week. He was appointed on June 17 and resigned on June 8. Santosh KC is the only executive director of the Himalayan Reema Management. The posts of CEO, DCEO and 2 Executive Directors are vacant.

Micro Life should call a special general meeting

The special general meeting of 5 micro life insurance companies that have been suspended for various offences has been called by the company.

According to sources, the NEA has verbally reminded the officials of Guardian Micro Life Insurance, Protective Micro Insurance, Liberty Micro Life Insurance, Crest Micro Insurance and Nepal Micro Insurance about the provision of SGM as per the provision in Section 82 of the Companies Act.

It has also directed the implementation of Directive 3 (3) of Directive 33 of the NRA’s Good Governance Directive.

Clause 82 (3) of the Companies Act states that if the shareholders holding at least 10% of the paid-up capital of the company or at least 25% of the total number of shareholders of the company make an application to the registered office of the company for convening the SPM, the Board of Directors shall convene the AGM to be held within 30 days from the date on which such demand is made. As per the provision, the NRA has issued a circular to call a special meeting.

The Department of Money Laundering Investigation (PMLA) on June 12 filed a case against directors and top management officials of about half a dozen insurance companies on charges of insurance and securities offences.

Following the filing of the case on June 11, NEA sent a letter to Guardian Micro Life Insurance, Protective Micro Insurance, Liberty Micro Life Insurance, Crest Micro Insurance, Nepal Micro Insurance, Himalayan Reinsurance and Himalayan Life Insurance. Since then, some companies are now run by one top manager and one or two directors. Similarly, 5 micro insurance companies have been suspended.

The case has been filed against the then chairman of Himalayan Reinsurance Company Shekhar Golchha, the then director Rohit Gupta, Shahil Agrawal, Amit Mor, Rajiv Mor, Subekshya Kharel, Subhash Kumar Jhunjhunala and the then CEO Upasana Poudel. They are no longer in the company.

Similarly, Narayan Bajaj is the chairman of Himalayan Life Insurance and Deepak Nepal is the director of the company. The government has suspended the then chairman of Himalayan Life Insurance Shulav Agrawal, former CEO Manoj Kumar Lal Karna, director Laxman Gyawali, among others.

Currently, Himalayan Life Insurance has given the responsibility of acting CEO to Assistant CEO Hari Prasad Dhungana. According to NEA sources, Chairman Bajaj has been reluctant to give full responsibility to the acting CEO.

Udip Shrestha, Chairman of Guardian Micro Life Insurance Uday Narayan Bhattarai, Pramod Prasad Bhattarai, Trishila Jhunjhunwala and Dr. Madhav Kumar Shrestha have been suspended. Jai Prakash Jaiswal, Jyoti Agarwal and Navaraj are in the mood.

Similarly, Chief Executive Officer (CEO) Chirayu Bhandari, Deputy CEO Jyoti Prasad Pandey and Investment Member Samir Kharel have been suspended following criminal charges.

Similarly, Protective Micro Insurance has suspended its board of directors Dinesh Sariya, Nitesh Malpani, Niru Dahal, Ganesh Raj Panta, Bhanu Bhakta Pokharel and CEO Naresh Kumar Roka.

The company has suspended its directors Bidur Puri, Mridula Sariya, Binod Narsingh Shrestha, Ishwarlal Shrestha and Sunita Maharjan and Rohit Karan Vaidya, investment coordinator. Similarly, promoters of Nepal Micro Insurance Siddhanta Jhunjhunwala, Latika Golyan, Badri Sigdel, Prabina Dahal and CEO Mrigendranath Rimal have also been suspended after the case was filed.

Criminal cases have been filed against around 60 persons including chairman, director, CEO and DCEO of various insurance companies for their alleged involvement in the stock market.