IB bans Rastriya Beema Sansatha engineering insurance policies

KATHMANDU, OCT 09 -

Insurance Board (IB) has banned state-owned Rastriya Beema Sansthan (RBS) from issuing engineering insurance policies after finding irregularities in the sector.

RBS has become the latest target of the board which has been initiating action against insurance companies violating insurance-related laws and norms.

The board has already halted RBS’ plan to distribute dividend and told the latter to hold its annual general meeting (AGM) which would endorse dividend proposal.

“The action against RBS was taken after flaws were found during the board’s inspection,” said an IB board. Engineering insurance covers all types of risks associated with machines or equipment of an industry.

The board and RBS are at loggerheads over the law governing the state-owned insurer. Despite the Insurance Act came into effect, the RBS Act—which governs RBS—has not been scrapped. RBS is the only insurance company with dual area of operation as it issues both life and non-life insurance policies. As per the Insurance Act, a single company cannot issue dual policy.

Source: The Kathmandu Post