Action Pending on Rs 68.8 Million Claim Discrepancy at Rastriya Beema Company

Kathmandu – A case involving a fraudulent insurance claim of Rs 68.8 million at Rastriya Beema Company Limited remains unaddressed, even after the Nepal Insurance Authority recommended action against those involved.

The scandal revolves around an exaggerated claim settlement for the Bheri Babai Diversion Multipurpose Project. Investigations revealed that only Rs 20 million worth of work had been completed when floods damaged the project. However, the contractor, Yuantian-Raman JV, in collusion with company officials, inflated the claim amount to Rs 88.8 million, which was approved and paid.

A probe led by the Nepal Insurance Authority found serious misconduct involving Subash Koirala, the then Acting CEO of Rastriya Beema Company, who now serves as the Deputy CEO. The investigation also implicated former Chairman Umesh Chandra Upadhyay, along with senior officials from the accounts and claims departments.

The Office of the Auditor General first flagged the irregularity, finding that the claim amount far exceeded the actual work completed. The case was then referred to the Commission for the Investigation of Abuse of Authority (CIAA), which prompted the Nepal Insurance Authority to conduct its own investigation.

The authority’s report clearly identified Koirala as the primary individual responsible for the corruption and recommended his suspension, along with disciplinary action against other involved officials. Despite this, no action has been taken, and the authority’s findings have been forwarded to the CIAA for further investigation.

This lack of enforcement has drawn criticism, with questions raised about the regulatory body’s independence and effectiveness. Observers argue that the authority, as a regulator, should have acted decisively instead of waiting for further directives from the CIAA.