Insurance companies are hastily searching for DCEO
As the Nepal Insurance Authority has instructed to send the details of the DCEO to the Insurance Authority this week, the insurance companies are currently in the process of new appointment process.
As soon as the authority’s letter reached the company, the decision of the board of directors was called for emergency, and some companies have even published vacancies for DCEO in the daily newspaper.
The post of Deputy CEO is vacant in nine insurance companies out of 28 currently operating. There are no deputy CEOs in nine companies including six life companies and three non-life companies. Sun Nepal, IME Life, Citizen Life, Rashtriya Jeevan Bima Company, Met Life and Reliable Nepal Life do not have deputy CEOs.
Similarly, there is no Deputy CEO in Oriental, Prabhu and government-owned National Insurance Company for non-life insurance. In the institutional governance of the authority, there is a provision for insurance companies to have a mandatory deputy chief executive director. But after the insurance companies refused, the authority demanded the details within three days with all the details.
According to Section 14 of Chapter 2 of the Insurance Act, the chairman and members of the company must submit the details to the authority within 30 days of their appointment. But in the case of the Deputy CEO, this arrangement is not applicable. The companies have been keeping the position vacant because the Authority has no record of the Deputy Governor as there is a provision to appoint the Deputy CEO by the company’s board meeting.
As soon as the authority’s letter reached the companies, the companies started thinking about the vacant deputy post.