KATMANDU, September 13: Rastriya Beema Sansthan (RBS), a public life insurance company, recently completed the audit of its financial transactions for the year 2009/10, more than a decade.
According to RBS, the insurer by an annual general meeting on Saturday concluded its audit of three consecutive years from the 2009/10 financial year. Although the Ministry of Finance (MoF) and the Office of the Auditor General have repeatedly asked the company to perform audits of financial transactions for a long time in the past, RBS has so far neglected government guidance. .
The Insurance Board (IB), the regulator of the country’s insurance business, repeatedly talks about implementing risk-based supervision of insurers by asking them to submit their annual financial reports to time. However, the state insurance company acted as an exception regarding the implementation of the state rule.
RBS, on the other hand, reiterated that it has not been able to conduct the audits for over a decade due to the loss of records of old financial transactions.
Speaking at the 31st annual general meeting on Saturday, RBS chairman Ganga Ram Kandel said they had now engaged the insurance company in the reform process. According to him, they sent the auditor’s report for the next three years from 2012/13 to the IB for final approval. In addition, RBS has also appointed two statutory auditors to prepare the financial reports for fiscal years 2015/16, 2016/17 and 2017/18.
In the meantime, RBS has also prepared a capital growth plan and forwarded it to the Ministry of Finance for final approval. Recently, the IB asked life insurers to increase their paid-up capital to a minimum of Rs 2 billion.
According to RBS, he collected a net amount of bonuses worth Rs 7.57 billion during the last financial year amid the impacts of the COVID-19 pandemic. During the period, he settled insurance claims worth Rs 3.19 billion to his clients.