The Authority Announces on Taking Action Against Insurance Companies that Submit Incorrect Financial Statements

Kathmandu : The Nepal Insurance Authority has initiated action against 19 insurance companies for cheating the regulator by entering wrong details in the integrated software. The Insurance Authority has sought clarification from 19 insurance companies for entering incorrect details in IRAMS, an integrated software for insurance companies. The authority said that the written answer given by the insurance companies is not satisfactory due to which the process of action will be taken forward. The authority also will take action against Surya Jyoti, Himalayan, Asian, Nepal Life, National Life, Reliable Life, Citizen Life, Sanima Reliance, Prabhu Mahalakshmi and IME Life in terms of life insurance.According to the sources of the authority, National Insurance, Himalayan Everest, Sagarmatha Lumbini, Neco, United Azod, IGI Prudential, Shikhar, Siddharth Premier, Oriental and National Insurance Company are those who submitted false information to Nirjevan Insurance Company so they will be procecuted for this reason. On Sharawan 1 (July 16), the information obtained during the on-site monitoring and the information submitted by the company in the system of Nepal Insurance Authority was found to be different so the authority has asked for an explanation. The authority is going to impose a cash fine of two lakh rupees to each company. Under Sub-section 19 of Section 138 of the Insurance Act , there is a provision of a fine of 2 lakh  for false submission to the respective companies.If the companies will continue to submit such wrong financial statements for the second time then there is a provision to impose them a fine from 25 lakh upto 50 lakh by the authority.It seems that for the first time after the Insurance Act, these insurance companies have submitted false financial statements and will be fined 2 lakh rupees per company.