Investigation committee probing irregularities at Insurance Board submits report to MoF

ShareSansar, September 4:

The investigation team which was formed to probe into the investment of the Insurance Board (IB) and staff appointments, among other issues, has submitted its report to the Ministry of Finance (MoF).

The three-member team led by joint secretary of MoF Nawaraj Bhandari had started its investigation on the first week of Shrawan.

It has investigated into various issues inside the IB like, the investment of the IB, appointment process of new staffs, appointment of then executive director Binod Aryal, important decisions and works conducted during the tenure of the IB chairman Phatta Bahadur KC, among other issues.

Following the protest from the staff unions of the IB, the MoF had formed the investigation team to find out the real status of the insurance regulators.

Quoting the MoF source, Karobar Daily has reported that the investigation team has found that the investment of Rs 1.28 arba made by the IB on very low interest rate was incurring the loss to the insurance regulatory board.

The IB has been parking its money on fixed and current account of various banks on very low interest rate. The investigation committee has also recommended formulating the guideline regarding the investment of the IB fund.

Likewise, the investigation committee has also concluded that the then executive director Aryal was appointed without completing the criteria and later he took undue financial benefits by formulating the rules regulations.

Aryal was accused of pocketing around Rs 70 lakh claiming the motor insurance through the forged documentation, the ministry source said citing the report.