Kathmandu. The Nepal Non-Life Insurance Professionals Association met with Insurance Authority Chairman Sharad Ojha today.
A team of officials led by Association Chairman Rajendra Malla met with the newly appointed Chairman of the Authority and expressed their congratulations and best wishes. During the meeting with Chairman Ojha, the association also drew attention to the policy difficulties seen in the non-life insurance business.
The association has drawn the attention of the authority to the provision that shares owned by directors in a company cannot be sold for 1 year even after resignation.
According to Rule 38 (1A) of the Securities Registration and Issuance Regulations 2079, the provision that a corporate director cannot buy or sell shares of the company concerned while in office or for one year after retiring from such office is impractical, the association said.
A statement issued by the Non-Life Insurance Professionals Association said, “The provision regarding the sale of shares is very We inform you that it is impractical. Like all the shareholders in the company, the directors are also investors and we inform you that the arrangement of not being able to sell shares on the basis of being elected by the shareholders’ general meeting and being represented on their behalf in the board of directors is not fair.’
A team of officials including the president of the association has also requested the president of the Insurance Authority, Ojha, to correct the provision. From the investment point of view, there is no difference between the financial interests of the company’s other shareholders and the financial interests of the directors, said the association’s president Malla.
The association has stated that it is not fair to deprive the directors of the use of the investment made by the directors in the company like other shareholders. Chairman Malla said that in a situation where a businessman is not allowed to sell his movable assets, it will create obstacles in the diversification of enterprises, businesses and even essential household activities.
The statement issued by the association said, “We request that the provision that a person cannot buy or sell any type of shares of the same organization while he is in the position of a director and for one year after he leaves that position be amended and that up to 50 percent of the share ownership can be sold while he is in the position of a director.”
The latest provision regarding share sales will create problems in the investment environment and will also affect foreign investment, according to Chairman Malla.
The direct loans given to Nepali reinsurance companies The association has also drawn the attention of the authority regarding the share. A statement issued by the authority states, “Section 2 of the Insurance Act 2079 states that reinsurance means a contract entered into with an insurer whereby the reinsurer or another insurer bears a share of the risk that is greater than the risk assumed by the insurer itself.” Similarly, the same provision has been made in Section 80 of the Act. On the other hand, based on the provision that reinsurance must be made mandatory with reinsurers established within the country, not less than the percentage specified by the Authority, a provision is in force that requires two reinsurance companies established in the country to allocate 6/6 percent direct share in the risk from the beginning.
Since the said provision is not in line with the spirit of the Act, the association has also drawn the attention of the Authority to make a provision to reinsurance only for the remaining risks, apart from the risks agreed to be assumed by the insurance companies as per the provisions of the Act.
Insurance Authority Chairman Ojha was met by Chairman Malla, along with office bearers Azad Shrestha, Ramesh Niraula, Bal Krishna Shrestha and Kunal Kayal.
प्रतिक्रिया दिनुहोस्