The insurance sector regulator has rejected the appointment of a chief executive of an insurance company citing the person failed to meet eligibility criterion. This is the first time the regulator has made such a move since the implementation of the new Insurance Corporate Governance Regulation 2069.
PrimeLife Insurance Company had decided to reappoint Restha Jha as the CEO of the company and had forwarded the proposal to the Insurance Board (IB), the insurance sector regulator. But the regulator shot down the request citing Jha was not qualified enough according to new regulations.
“According to existing regulation, a CEO needs to have minimum 10 years experience in managerial level, but the professional experience of the nominee of PrimeLife Insurance does not match this provision. So the board could not give approval,” informed IB deputy director Shreeman Karki.
Jha was reappointed as CEO in September end upon completion of his first term as the CEO of the life insurance company. However, the IB did not endorse the reappointment due to Jha’s professional experience. “The regulation clearly states that a CEO needs to hold managerial post or above for 10 years in any private organisation or should have worked as second-class officer in case of government officials. Experience of deputy manager is not enough as in the case of PrimeLife CEO,” explained Karki.
This is not the first time that PrimeLife CEO Jha had gotten into trouble with the regulator. Back in September, the IB had penalised Jha for spending beyond the limit set by the regulator on agent incentive and promotional activities. At that time the regulator had fined him Rs 10,000—the maximum penalty according to the existing Insurance Act 1992—and directed the company to hold a Due Diligence Audit.
Moreover, around a year before that the IB had sought clarification from Jha for procuring interior décor items without calling for proposals.
The disapproval for reappointment of PrimeLife Insurance’s CEO is just another episode in the series of standoffs between the IB and insurance companies promoted by Khetan Group. The IB is currently trying to set things straight with another non-life insurance company promoted by Khetan Group—Everest Insurance—by taking over its management.
For the past one year, Everest Insurance has seen its fire portfolio suspended for making advance payment on a claim filed by Himalayan Snax, a company promoted by Khetan Group. Since the management and the board of directors showed no interest in getting the suspension revoked, the IB had stepped in and taken over the management. It has also suspended its CEO and board members. However, the court has stayed the suspension until hearings are complete.
source:the himalayan times,27 Oct 2013
LINK
PrimeLife Insurance Company had decided to reappoint Restha Jha as the CEO of the company and had forwarded the proposal to the Insurance Board (IB), the insurance sector regulator. But the regulator shot down the request citing Jha was not qualified enough according to new regulations.
“According to existing regulation, a CEO needs to have minimum 10 years experience in managerial level, but the professional experience of the nominee of PrimeLife Insurance does not match this provision. So the board could not give approval,” informed IB deputy director Shreeman Karki.
Jha was reappointed as CEO in September end upon completion of his first term as the CEO of the life insurance company. However, the IB did not endorse the reappointment due to Jha’s professional experience. “The regulation clearly states that a CEO needs to hold managerial post or above for 10 years in any private organisation or should have worked as second-class officer in case of government officials. Experience of deputy manager is not enough as in the case of PrimeLife CEO,” explained Karki.
This is not the first time that PrimeLife CEO Jha had gotten into trouble with the regulator. Back in September, the IB had penalised Jha for spending beyond the limit set by the regulator on agent incentive and promotional activities. At that time the regulator had fined him Rs 10,000—the maximum penalty according to the existing Insurance Act 1992—and directed the company to hold a Due Diligence Audit.
Moreover, around a year before that the IB had sought clarification from Jha for procuring interior décor items without calling for proposals.
The disapproval for reappointment of PrimeLife Insurance’s CEO is just another episode in the series of standoffs between the IB and insurance companies promoted by Khetan Group. The IB is currently trying to set things straight with another non-life insurance company promoted by Khetan Group—Everest Insurance—by taking over its management.
For the past one year, Everest Insurance has seen its fire portfolio suspended for making advance payment on a claim filed by Himalayan Snax, a company promoted by Khetan Group. Since the management and the board of directors showed no interest in getting the suspension revoked, the IB had stepped in and taken over the management. It has also suspended its CEO and board members. However, the court has stayed the suspension until hearings are complete.
source:the himalayan times,27 Oct 2013
LINK
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