Neco Insurance Chairman Urges CEO to Step Down Amid Regulatory Scrutiny
Kathmandu – The Chairman of Neco Insurance Company, Ramesh Kumar Niraula, has asked Chief Executive Officer Ashok Kumar Khadka to resign from his position following concerns raised by the insurance regulator over Khadka’s recent political activities.
The issue arose after CEO Khadka participated in the 11th General Convention of the CPN-UML and contested as a candidate for the party’s Central Committee while serving as the chief executive of a public insurance company. The Nepal Insurance Authority has taken notice of the matter and has sought a written clarification from the company, instructing it to submit a response along with the findings of an internal investigation.
According to sources, Chairman Niraula urged Khadka to resign, stating that the situation had placed the company and its leadership in a difficult position. However, Khadka has reportedly declined to step down, indicating that he is prepared to defend his position through legal means if necessary. This has led to growing tension between the company’s board of directors and its management.
The Insurance Authority has reportedly asked Neco Insurance to provide clarification within three days regarding the matter. While Khadka had initially assured the chairman that he would resign, no written resignation has been submitted so far. As a result, the company has not yet initiated the investigation process as directed by the regulator.
Neco Insurance includes investments from government-owned banks such as Rastriya Banijya Bank and Agricultural Development Bank, increasing regulatory sensitivity around governance and compliance issues. Industry observers note that failure to respond promptly to the regulator’s directive could expose the company to further scrutiny.
Attempts to convene a board meeting to discuss the regulator’s letter have so far been unsuccessful, according to company sources. The Nepal Insurance Authority has stated that it has not yet received any formal response from Neco Insurance.