Concerns Grow Over Alleged Corruption in Insurance License Distribution

Kathmandu – As the tenure of Surya Prasad Silwal, Chairman of the Insurance Authority, nears its end, there are growing concerns about the potential distribution of new insurance licenses, particularly in the micro-insurance sector. The distribution of licenses in the past has been marred by allegations of corruption, with reports of bribes amounting to millions of rupees.

Previously, Prem Kumar Rai, head of the Commission for the Investigation of Abuse of Authority (CIIA), was accused of secretly distributing micro-insurance licenses in exchange for a bribe of thirty million rupees. Despite Silwal addressing these concerns, rumors suggest new licenses could be granted to major business groups like Chaudhary Group, Mahato Group, Vishal Group, and Shankar Group. Sources also claim discussions are ongoing, with some groups inflating share premiums to secure licenses. However, the Insurance Authority has denied any official process.

During the Inclusive Insurance Conference (ICII) last month, Silwal publicly pledged not to distribute any new licenses during his remaining tenure. This, however, has not quelled speculation about the possible continuation of the practice which raises question about the government’s commitment to fighting corruption, particularly within the insurance sector.