Insurance Board, amending Guidelines related to Corporate Governance of Insurance Companies on December 2, directed the companies to appoint Chief Executive Officer (CEO) within three months since the post become vacant.
However, the companies have defied the direction given by IB. currently, one life insurance company and two non-life insurance companies are operating without a CEO. Nepal Life Insurance Company, Nepal Insurance and Rastriya Beema Company have been unable to appoint a CEO to run the company.
Nepal Life Insurance has been running without CEO after its then CEO Santosh Prasai left the job in mid-October. Currently, Prabin Raman Parajuli, Former CEO of Reliance Life has been running the company withholding the post of Senior Deputy CEO. The company is preparing to appoint Parajuli to the CEO post after completing his cooling period.
Similarly, Nepal Insurance is also CEO-less since last mid-July after the end of the tenure of then CEO Bijay Bahadur Shah. Currently, BK Maharjan has been driving the company retaining the post of Acting CEO.
Likewise, government-owned Rastriya Beema Company is also CEO-less since the departure of Dilli Raj Aryal former CEO of the company. Currently, Acting CEO Subash Koirala is running the company.
Although the companies have been taking extended time to appoint a CEO, IB has remained silent about it.
After a prolonged time, IB has sought clarification from the companies about the defiance of the directive. Raju Raman Poudel, Executive Director of IB said that the regulatory body has sought clarification from the companies about the appointment of CEO. If the clarifications are not valid, action will be taken against them, he added.
Meanwhile, the insurance companies blame the lack of skilled manpower for the vacant CEO post.
