Neco Insurance Found to Have Issued Insurance Policies Illegally

Kathmandu — Neco Insurance Company has been found to have prepared and sold insurance policies illegally, targeting farmers in buffer zone areas. The company is reported to have disregarded existing insurance regulations and laws, and is said to have issued unauthorized policies while also challenging the Nepal Insurance Authority.

According to the regulator, Neco Insurance unlawfully modified an insurance policy that had already been approved by the Insurance Authority. During an investigation, the Authority concluded that the agricultural insurance policies issued to buffer zone farmers were illegal. Following this finding, the regulator decided to impose a fine of NPR 200,000 on the company.

In response, Deputy CEO Ganesh Lamsal declined to comment on the matter. However, Information Officer Bishnu Dhital stated that the company had issued public liability insurance policies for buffer zone residents and claimed that they were approved by the Insurance Authority. He also said he was unaware of why the regulator had initiated action.

Meanwhile, CEO Ashok Khadka has been accused in media reports of continuing in his position unlawfully and of disregarding standard insurance rules and regulations. Allegations have also been made regarding misconduct, including intimidation and fundraising activities linked to political influence. He is a former central committee member of CPN-UML and had previously lost in the party’s 10th general convention, securing 374 votes.