Nepal Insurance Authority Issues Ultimatum to Rastriya Beema Company for Audit Action Plan

Kathmandu – The Nepal Insurance Authority has issued a one-week ultimatum to Rastriya Beema Company Limited (RBCL) to submit an action plan for the upcoming audit. The directive comes after the company’s repeated non-compliance with prior instructions, prompting the Authority to summon the company’s board of directors and branch officials to ensure accountability. The Authority has demanded a detailed progress report and a comprehensive action plan, citing RBCL’s failure to respond to its letters.

The company recently held its general meeting, during which annual reports for fiscal years 2073/74 and 2074/75 were finalized and passed. The report for fiscal year 2075/76 has also been submitted to the Insurance Authority. However, major discrepancies in financial accounts amounting to millions of rupees, highlighted in the audit, have raised serious questions about the company’s financial governance.

Despite these irregularities, the annual report and audit findings—approved under pressure from the Ministry of Finance and endorsed by Finance Minister Bishnu Poudel were passed. The Nepal Insurance Authority has now placed the company under special surveillance, following the identification of numerous qualifications in the audit report.

Concerns over RBCL’s governance have further escalated after its second annual general meeting failed to attract significant interest from investors. The Nepal Insurance Authority has emphasized the urgent need for transparency, accountability, and compliance with financial regulations, urging the company to take immediate corrective measures to safeguard the interests of stakeholders and maintain the credibility of the insurance sector.