Insurance Act, 2022

Provided that before being removed from office in this manner, they shall be given a reasonable opportunity to present a defense.

(4) When appointing a chief executive, the board of directors shall appoint a person with the following qualifications and experience and shall inform the Authority within seven days of such appointment:

(a) Has obtained at least a master's degree or equivalent in insurance, monetary, banking, financial, commerce, management, public administration, statistics, mathematics, economics, or law, and has at least seven years of experience, including at least five years in the insurance sector at the managerial level, eight years in the banking or financial sector, or if in both sectors, at least one year of experience in insurance combined with at least seven years of total experience, or

(b) Has completed chartered accountancy or has obtained at least a bachelor's degree or equivalent in insurance, monetary, banking, financial, commerce, management, public administration, statistics, mathematics, economics, engineering, or law, and has at least twelve years of experience, including at least ten years in the insurance sector at the managerial level, fifteen years in the banking or financial sector, or if in both sectors, at least one year of experience in insurance combined with at least twelve years of total experience.

(5) The following person shall not be appointed as the chief executive of an insurer:

(a) Is unable to serve as a director due to physical or mental illness,

(b) Has been blacklisted under the prevailing law or three years have not elapsed since removal from the blacklist,

(c) Is serving as a director of the insurer, a close relative of a director, an employee, an insurance intermediary, or a consultant,

(d) Has served as an auditor of the same insurer within the past three years,

(e) Is a securities dealer or a member of the securities market,

(f) Has a financial interest with the insurer,

(g) Has been a chairperson or the chairperson of the board of directors,

Provided that this provision shall not be deemed to prevent the Government of Nepal from appointing a chairperson or director of an insurer.

(h) Six months have not elapsed from the date a person who has been a chief executive ceased to hold such position,

(i) Has been sentenced to imprisonment under the prevailing law and three years have not elapsed since the completion of such sentence,

(j) Has obtained permanent residency permission of a foreign country,

Provided that this provision shall not apply to the chief executive of a foreign insurer or an insurer established with joint investment.

(k) Has been convicted by a court for criminal offenses such as forgery, fraud, corruption, money laundering, human trafficking, banking offenses, insurance or other fraud, hostage-taking, or kidnapping,

(l) Holds a public office.

(6) Notwithstanding anything contained elsewhere in this section, an insurer with majority shares of a foreign insurer or a foreign insurance company may appoint its employee as the chief executive, subject to this section.

(7) A branch office of a foreign insurer in Nepal shall appoint a chief executive based on the qualifications and experience under this section.

(8) The remuneration and other terms and conditions of service and facilities of the chief executive shall be as determined by the board of directors, subject to the directives issued by the Authority from time to time, and the terms and conditions of service and facilities shall be determined at the time of their appointment.