Everest Insurance to get new board today

2014-02-13
Everest Insurance Company Ltd to get new board on February 13 2013, Thursday after it was taken over by the Insurance Board for stopping work for months. According to Insurance Board, it would be handling over the company management to the new board committee. 10 shareholders have submitted their candidacies for Board member, though an election has been schedule. Niranjan Kumar Tibrewala, Purushottam Raj Bhattarai, Hindu Sanskriti Karki, Rajan Kumar Paudel, Surendra Silwal, Sashi Agarwal, Pawan Kumar Shanghai and Priyanaka Agrawal are the candidates for the seats. Seven of the proposed candidates are likely to be elected unopposed. Among them, 4 are from Khetan group white 2 are from the Riberewala Panel and 1 from the Birendra Shah and Om Prakash Sikaria panel.  Based on the number of shares and proxy collection done recently the board is likely to be coalition said company official.  
The Insurance Board took over Everest Insurance after its management stopped normal business activities for several months. After that Insurance Board dissolved the company board and suspended the Chief Executive Officer (CEO) before sending a three member team to take over the management.

Everest Insurance Company was in trouble because its management paid a claim of Rs 40 million to Himalayan Snacks, the manufacturer of Mayos Instant Noodles without receiving detail final report from the surveyor after that Insurance Board slapped monetary fine and stopped the insurance company to issue fire insurance due to that company shut down its operation. Everest Insurance Company was again found to have settled the claim illegally; hence the Insurance Board expelled the company from issuing new policies. After Insurance Board took over the management of Everest Insurance, the company stated its entire business including fire insurance before two months. After regulator’s management they paid 1800 claims out of 3400 unpaid claims over Rs 8 million. Similarly they earned Rs 70 million insurance premium from its new accounts. Everest Insurance which has a paid up capital of Rs 100 million has allocated Rs 320 Million along with reserve fund.
Constantly financial organizations are actively and partially involved in such activities. Previously we have witnessed the fraud case of the Nepal Share Markets and Finance Limited (NSMF) chairman Yogendra Shrestha, who was actively involved in fake loans and transferred the money to the accounts of his son and wife, so the regulator body of financial institution Nepal Rastra Bank (NRB) took over the management of NSMF on February 8, 2014. Similarly, NRB also took over the management of Nepal Credit and Commerce Bank.  The job done by insurance Board is appreciable and it has played a good role of regulator in Nepal. The Everest Insurance Company was not supposed to pay a claim amount worth of Rs 40 million to Himalayan Snacks Company, which caught fire on their factory. We had also heard some rumors regarding the fire and it was planned fire rather than an accident according to rumors. If it was the well preplanned then we should think twice before joining such institutions.