The insurance regulator is readying to exit from Everest Insurance Company.The team delegated by the Insurance Board (IB) will hold a special general meeting of the company on February 13 to elect a new board of members that will take over the company. Everest Insurance Company (EIC) is being run by IB’s team since October 2013.
“We will hold the special general meeting on February 13, and elect a new board. We will exit the company within the next 15 days,”informed IB’s team leader Santosh Prasai.
Back in October, IB had suspended the board members, former chairman and then CEO of the company for not running the business properly and flouting insurance regulations.
“The company’s financial health is also good right now and there will not be much problem for the new management to run the company,” pointed out Prasai.
“Back when IB took over the management of EIC, the company had more than 3000 unsettled claims. We have managed to settle more than half the claims and the internal system of the company has also become better, so we are confident that the company can function properly now,” he added.
The non-life insurance company ran into trouble more than a year ago after it was found to have made payments to an insurance claim worth Rs 40 million made by Himalayan Snax even before the surveyor had submitted the final report. Since Himalayan Snax and Everest Insurance are promoted by Khetan Group, the regulator was suspicious of the hasty transaction.
Since the beginning of the fiscal year, the non-life insurance company’s staff have been protesting against the board and the management that are allegedly not willing to operate the business and are using the excuse of non-renewal of licence to shut down the company.
After taking over the company’s management, IB had even recommended the Central Investigation of Bureau (CIB) of Nepal Police to investigate the financial misappropriation at company.
On further investigation, CIB even arrested the insurer’s former CEO Kebal Krishna Shrestha, assistant general manager Anil Dhungel and two chartered accountants — Jagadish Agrawal and Gopal Agrawal — for their involvement in swindling funds worth more than Rs 20 million from the company. The police have even filed a case at Kathmandu District Court and the accused are out on bail right now.
source: the himalayan times,24 jan 2014
LINK
“We will hold the special general meeting on February 13, and elect a new board. We will exit the company within the next 15 days,”informed IB’s team leader Santosh Prasai.
Back in October, IB had suspended the board members, former chairman and then CEO of the company for not running the business properly and flouting insurance regulations.
“The company’s financial health is also good right now and there will not be much problem for the new management to run the company,” pointed out Prasai.
“Back when IB took over the management of EIC, the company had more than 3000 unsettled claims. We have managed to settle more than half the claims and the internal system of the company has also become better, so we are confident that the company can function properly now,” he added.
The non-life insurance company ran into trouble more than a year ago after it was found to have made payments to an insurance claim worth Rs 40 million made by Himalayan Snax even before the surveyor had submitted the final report. Since Himalayan Snax and Everest Insurance are promoted by Khetan Group, the regulator was suspicious of the hasty transaction.
Since the beginning of the fiscal year, the non-life insurance company’s staff have been protesting against the board and the management that are allegedly not willing to operate the business and are using the excuse of non-renewal of licence to shut down the company.
After taking over the company’s management, IB had even recommended the Central Investigation of Bureau (CIB) of Nepal Police to investigate the financial misappropriation at company.
On further investigation, CIB even arrested the insurer’s former CEO Kebal Krishna Shrestha, assistant general manager Anil Dhungel and two chartered accountants — Jagadish Agrawal and Gopal Agrawal — for their involvement in swindling funds worth more than Rs 20 million from the company. The police have even filed a case at Kathmandu District Court and the accused are out on bail right now.
source: the himalayan times,24 jan 2014
LINK
Comments
Post a Comment