The advisory team and management team of Insurance Board (IB) formally exited the Everest Insurance Company (EIC) on Monday after handing over the charge to the newly elected board of directors (BoD).
IB had sent a two-member advisory team as well as three-member management team to EIC in October. The advisory team was led by IB Board Member Suraj Bickram. Bhojraj Sharma, insurance expert at IB, was the other member in the team.
Similarly, the three-member management team was led by Chartered Accountant Santosh Prasai. IB´s Deputy Director Kundan Sapkota and Assistant Director Om Bahadur Adhikari were the other members in the team.
The team handed over the management to EIC company secretary Pradip Dhaubadel after it received letter of withdrawal from IB - the insurance regulator.
The special annual general meeting (AGM) of EIC elected a new seven-member BOD on Thursday.
IB had asked the management team to probe loss incurred during the reign of the earlier management team and recover the amount. It had also asked the team to hold AGM within six months and hand over the management to the elected BoD.
IB Chairman Fatta Bahadur KC told Republica that the intervention of the regulatory body and the successful handover will help in maintaining transparency and establishing corporate governance in insurance companies. “This has paved the way for the newly elected board to drive EIC forward in a professional manner,” he added.
Before sending the management team, IB had suspended CEO and all nine board members, including industrialist and former lawmaker Rajendra Kumar Khetan, and barred them from holding any position in insurance companies for five years.
The insurance regulator had taken the punitive action after the management of EIC repeatedly flouted its directions.
“We have successfully discharged the responsibilities assigned to us within the stipulated deadline,” Prasai told Republica. “The IB action has sent a clear message that there is a strong vigilance of the regulatory board in the insurance sector.”
He informed that EIC earned Rs 80 million by selling insurance policies during the takeover period and settled 1,800 of the 3,404 unsettle claims.
IB has also forwarded documents relating to financial fraud worth Rs 60 allegedly committed by former lawmaker Khetan to Central Investigation Bureau (CIB) of Nepal Police for further investigation.
Police have arrested two chartered accountants -- Jagadish Agrawal and Gopal Agrawal - on the charge of aiding EIC top management to commit financial fraud. Khetan is still on the run.
IB had sent a two-member advisory team as well as three-member management team to EIC in October. The advisory team was led by IB Board Member Suraj Bickram. Bhojraj Sharma, insurance expert at IB, was the other member in the team.
Similarly, the three-member management team was led by Chartered Accountant Santosh Prasai. IB´s Deputy Director Kundan Sapkota and Assistant Director Om Bahadur Adhikari were the other members in the team.
The team handed over the management to EIC company secretary Pradip Dhaubadel after it received letter of withdrawal from IB - the insurance regulator.
The special annual general meeting (AGM) of EIC elected a new seven-member BOD on Thursday.
IB had asked the management team to probe loss incurred during the reign of the earlier management team and recover the amount. It had also asked the team to hold AGM within six months and hand over the management to the elected BoD.
IB Chairman Fatta Bahadur KC told Republica that the intervention of the regulatory body and the successful handover will help in maintaining transparency and establishing corporate governance in insurance companies. “This has paved the way for the newly elected board to drive EIC forward in a professional manner,” he added.
Before sending the management team, IB had suspended CEO and all nine board members, including industrialist and former lawmaker Rajendra Kumar Khetan, and barred them from holding any position in insurance companies for five years.
The insurance regulator had taken the punitive action after the management of EIC repeatedly flouted its directions.
“We have successfully discharged the responsibilities assigned to us within the stipulated deadline,” Prasai told Republica. “The IB action has sent a clear message that there is a strong vigilance of the regulatory board in the insurance sector.”
He informed that EIC earned Rs 80 million by selling insurance policies during the takeover period and settled 1,800 of the 3,404 unsettle claims.
IB has also forwarded documents relating to financial fraud worth Rs 60 allegedly committed by former lawmaker Khetan to Central Investigation Bureau (CIB) of Nepal Police for further investigation.
Police have arrested two chartered accountants -- Jagadish Agrawal and Gopal Agrawal - on the charge of aiding EIC top management to commit financial fraud. Khetan is still on the run.
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