Regulator fines Everest Insurance

KATHMANDU, SEP 1: 

Insurance regulator — Insurance Board (IB) — has suspended Everest Insurance Company’s fire insurance portfolio along with penalising its chief executive.

Everest Insurance was found to have paid insurance claim of Himalayan Snax before the surveyor’s final report. Himalayan Snax’s factory had caught fire in July 2011 and its claim worth Rs 20 million was paid by Everest in September 2011 — before surveyor had submitted final report.

Everest’s chief executive officer Kebal Krishna Shrestha has been levied fine of Rs 10,000 along with deputy managing director and two assistant managing directors. The company has been given 35 days to bring its act together as it has found to have flouted regulation under numerous counts. 

Both Himalayan Snax and Everest Insurance are promoted by Khetan Group. 

Recently, the regulator had suspended NB Insurance for embezzling funds, Shikhar Insurance was penalised for unlawful 

payment of claims, Asian Life Insurance was penalised for distributing cash dividend against regulation, National Life Insurance was penalised for using unsupported marketing channels and Lumbini General Insurance for doling out insurance policies to promoters for free.

Source: THT