Rastriya Beema Sanstha needs to follow regulations: Pun

KATHMANDU, FEB 23:

Finance minister has directed Rastriya Beema Sansthan (RBS) to get its governance on track and emerge as a competitive insurer.

“Available statistics of RBS reveal of its inability to conduct proper audits of its financials and the absence of a concrete business plan which has weakened its position in the market,” said finance minister Barshaman Pun during RBS’ 46th anniversary here today.

“Likewise, it needs to separate its life and non-life business as per regulation as soon as possible. Disregarding it has tainted the company’s image among the public and its peers,” he added.

The oldest insurance company of Nepal is notoriously disregarding the Insurance Board’s regulations. It has not audited its financials for a long time. Last year, it completed its audit till fiscal year 2005/06, but it still has a long way to go.

The Insurance Board’s regulation not only requires insurance companies to submit audited reports within six months of the completion of a fiscal year but companies also need to publish unaudited balance sheets every quarter. Likewise, any listed public limited company also needs to publish its financials every quarter as per Securities Board of Nepal’s regulations. RBS has not published its financials for a long time. It enjoys special status since it is governed by a separate Rastriya Beema Sansthan Act 2025.

RBS, which started operations in 1966, collected life insurance premium worth Rs 1.9 billion and non-life insurance premium worth Rs 550 million in fiscal year 2011-12. It is planning to provide bonus shares worth Rs 120 million within this fiscal year to increase its paid up capital to Rs 500 million.

Source: THT