CEO Jha is eligible: PrimeLife tells IB

ShareSansar, November 28:

PrimeLife Insurance Limited has urged the Insurance Board to endorse the appointment of its Chief Executive Officer Reshta Jha, stating that he has enough experience and qualification to handle the post.

As per the new Insurance Corporate Governance Regulation 2069, the regulator in October had rejected Jha’s reappointment as the chief executive of the insurance company, citing eligibility criterion.

Chairperson of the insurance company Pramod Kumar Karki said the company’s board of directors has urged the Insurance Board to review its decision as he meets both the educational as well as professional qualification for the post.

This is the first time the regulator has taken such a step after the enforcement of the new regulation.

IB Chairperson Fattah Bahadur KC only said that the IB was “considering the request”.

Restha Jha was reappointed as the CEO of the company in September, notwithstanding the fact that he had got into troubles with the regulator in the past.

As per the new regulation, a CEO must to have a minimum of ten years of experience in managerial level, but Jha does not meet that criterion, according to the Insurance Board officials.

However, Karki said that Jha meets the criteria since he has around 12 years of experience of working in various BFIs and insurance companies.

Meanwhile, Jha has been coming to the office as the IB has not formally responded to the company’s request to reconsider its decision not to approve of his reappointment.

Irked by this move, IB has just sought clarification from Jha, asking why was he continuing in the office even after the regulator rejected his reappointment.

Shortly before his reappointment as the CEO, the Insurance Board had penalised Jha Rs 10,000 (which is the highest amount of fine the board could impose) for indulging in expenditures beyond the limit set by the regulator on agent incentive and promotional activities.

And the regular had gone on to direct the company to hold a Due Diligence Audit.

Last year the IB had sought clarification from Jha for procuring interior décor items without calling for proposals.