Rastriya Beema Sansthan to be split into life, non-life insurance

Rastriya Beema Sansthan (RBS) is preparing to separate its business es into life and non-life after resisting the Insurance Board’s (IB) attempt to bring it under the Insurance Act for 11 years.

The amended Insurance Act requires separation of the two kinds of insurance. However, RBS’ insistence that it is governed by the RBS Act 1968 and its failure to have its books audited for several years complicated the process of separating its two business es. On the private sector front, National Life and General Insurance has been split into two entities—National Life Insurance and NLG Insurance.

Rastriya Beema Sansthan found violating regulations

Rastriya Beema Sansthan has been operating without audit for seven years.
As the company has not undergone any audit since fiscal year 2062/63, after the end of FY 2069/70, the company will have to carry out an audit for the past eight years
As per the rule, a company has to carry out audit every year.