Rastriya Jeevan Beema Company and Rastriya Beema Company Placed Under Close Surveillance by NIA

Kathmandu — The Nepal Insurance Authority (NIA) has placed two government-owned insurers — Rastriya Jeevan Beema Company and Rastriya Beema Company — under close regulatory surveillance following the discovery of serious irregularities in their financial accounts.

According to the Authority, both companies are now required to visit the regulator every 15 days to update their financial statements. In addition, their senior officials must present a detailed financial briefing to the chairman once every two months. Department heads, senior managers, and the CEOs of both insurers have also been summoned regularly for in-person reporting.

The regulator intensified its intervention after financial and governance issues at both companies continued to escalate. Key concerns include failure to conduct timely audits, not convening annual general meetings, and making employee appointments without transparency — practices that have increased significantly in recent years.

Stakeholders had long expected past governments to resolve these issues. Over the years, five former finance ministers had individually promised to complete long-pending audits within six months to a year. However, during their tenure, neither the audits were completed nor were the persistent financial discrepancies addressed.

Insurance experts have previously accused the former finance ministers of shielding the troubled companies. Their political influence reportedly restricted the Nepal Insurance Authority from initiating action under regulatory provisions. Senior officials of the Authority have openly acknowledged that monitoring efforts were hindered due to pressure and protection from the Ministry of Finance, forcing the regulator to overlook numerous complaints.

Earlier, the Auditor General’s report had revealed corruption amounting to over Rs 60 million involving high-level officials at Rastriya Beema Company. Despite the seriousness of the findings — including the company’s failure to maintain proper reinsurance arrangements — the regulator at the time remained silent due to political interference.

Although the situation within both Rastriya Jeevan Beema Company and Rastriya Beema Company has since evolved, the Nepal Insurance Authority states it was compelled to act now as unresolved financial mismanagement continues to surface.