Majority of Insurance Companies Miss Deadline for Financial Statement Submission
Kathmandu – As the second week of the month of Magh draws to a close, the majority of Nepal’s insurance companies have failed to meet the regulatory deadline for submitting their financial statements. According to the Nepal Insurance Authority, only 11 out of 39 companies have submitted their statements on time, with 28 companies still in default.
The companies that complied with the month of mid-Poush deadline include Citizen Life, IME Life, MetLife, SuryaJyoti Life, Nepal Life, Sanima GIC, Shikhar Insurance, IGI Prudential, Siddhartha Premier, Guardian Micro Life, and Crest Micro Life Insurance. Of these, the financial statements of MetLife, Suryajyoti Life, and Nepal Life have already been approved by the Authority. Notably, SuryaJyoti Life has also successfully conducted its annual general meeting.
However, nine life insurance companies, ten non-life insurance companies, five microinsurance companies, and two reinsurance companies have not yet submitted their financial statements. Among the life insurance companies in default are Asian Life, Life Insurance Corporation Nepal, Sun Nepal Life, Reliable Nepal Life, Sanima Reliance Life, National Life, National Life Insurance Company, Himalayan Life, and Prabhu Mahalaxmi Life Insurance.
Similarly, non-life insurers such as Oriental Insurance, Nepal Insurance, NLG Insurance, Neco Insurance, REastriya Beema Company, Himalayan Everest Insurance, United Ajod, National Insurance, Sagarmatha Lumbini Insurance, and Prabhu Insurance have failed to meet the submission deadline. Additionally, microinsurance providers including Nepal Micro Insurance, Trust Micro Insurance, Protective Micro Insurance, Star Micro Insurance, and Liberty Micro Insurance remain non-compliant.
Deputy Director of the Nepal Insurance Authority, Birod Wagle, has revealed that the regulatory body is currently deliberating whether to take punitive action against the non-compliant companies or issue warning letters. The Insurance Act’s Section 138 imposes significant fines for late submissions. Companies that fail to submit their financial statements within one week after the six-month financial period are fined Rs 25,000 per day. If the delay exceeds two weeks, the fine increases to Rs 50,000 per day, and beyond that, it escalates to Rs 100,000 per day.