Himalayan Reinsurance Company Barred from New Business

Kathmandu. Himalayan Reinsurance Company will not be able to do new reinsurance business. The Insurance Authority of Nepal has made a decision to stop the company from doing new business.

The Insurance Authority's board of directors meeting held on Tuesday, using the authority given by the Insurance Act 2079, has directed to stop the reinsurance business.

The authority has stated that this decision has been made citing the company's failure to fulfill its obligation to pay reinsurance claims. However, the company will have to continue with the reinsurance business it has already sold.

Earlier, the authority had sought clarification from Himalayan Re-Insurance's Chief Executive Officer and four other high-level management officials.

It has been found that approximately 4 billion has been misused in the company, which is mainly invested by the group of famous businessman Deepak Bhatt. For this, both the authority and the Securities Board have conducted separate studies. Currently, the Central Investigation Bureau (CIB) of Nepal Police is investigating this matter.