Regulator to hand over mgmt of Everest Insurance through special AGM today

ShareSansar, February 13:

Everest Insurance Company is holding its special Annual General Meeting today to elect a new Board of Directors, effectively replacing the team delegated by the Insurance Board (IB) that has been running the troubled company since October.

The non-life insurance company has stated that the special AGM being held at the City Hall of Kathmandu to elect seven BoD members.

According to the IB sources, the regulator will exit from the company within 15 days from today.

In October the regulator had taken over the management of Everest Insurance and suspended the then BoD as well as chairman and CEO for flouting insurance regulations as well as their failure to run the company properly.

At that time, there were more than 3000 unsettled claims, which the IB team has now brought down by 50 percent.

According to the IB sources, the regulator is now confident that the company can run smoothly without its direct involvement.

After taking over the management of the company, the IB had also urged the Central Investigation of Bureau of Nepal Police to investigate the financial misappropriation at company.

CIB then went on to arrest the company’s former CEO Kebal Krishna Shrestha, assistant general manager Anil Dhungel and two chartered accountants — Jagadish Agrawal and Gopal Agrawal — for their alleged involvement in misappropriation of money worth more than Rs 2 crore.

Everest Insurance had fallen into deep soup last year after it released payments to an insurance claim worth Rs 4 crore lodged by Himalayan Snax even before the surveyor had submitted the final report.

The regulator immediately sprang into action as both Himalayan Snax and Everest Insurance are promoted by Khetan Group.