Kathmandu, February 23:

Rastriya Beema Sansthan (RBS) is committed to finish its auditing of last six years soon. Speaking on the occasion of its 41st anniversary, Rajesh Rajkarnikar, the newly appointed CEO vowed to complete the company’s long-due auditing of almost six years within one-and-a-half year.

Navraj Mudbhari, general secretary of the Financial Institution Employees’ Union of Nepal (FIEUN) - RBS chapter, urged the regulatory authority, Insurance Board (IB), to scrap one per cent service charge.

“At least in life policy, it should be scrapped as it is refundable and in the case of non-life also, it should be charged on the profits only,” he said, adding that RBS needs aggressive marketing to compete with the private players. “RBS should also explore lucrative and profitable investment opportunity,” he said.

Devendra Pratap Shah, chairman of the regulatory authority of the insurance companies, said that the Board is reviewing the service charge policy.

“However, RBS also has to look ways to reduce its huge cost involved in training that comes to 13 per cent and overhead cost that comes to eight per cent,” he suggested.

The only life-and non-life insurance company in the country has the authorised and issue capital of Rs 100 million. It is planning to increase authorised capital to Rs 500 million and

issue capital to Rs 350 million. RBS is also in the process of separating its life-and non-life sector business.

Established in 2024 BS, RBS with 47.53 per cent government’s equity, apart from Nepal Rastra Bank’s 29.25 per cent, Nepal Bank’s 10.97 per cent and public’s 12.24 per cent shares.

After 1990, the country adopted free market economy making the private players’ entry easy.

As a result, there are eight life insurance companies, including the four new that got licence recently, 13 non-life insurance companies and RBS.

They are providing employment to more than 2,500 with more than 10,000 insurance agents and 62 surveyors.