The decision came into effect on Monday, according to a statement issued by the IB.[break]
The Board has identified Ramesh Kumar Bhattarai, the then managing director of the insurance company, as the main culprit behind the incident which caused “inconvenience to the public”. He was fined Rs 10,000. This is the first time the Board had fined a top management official for breaching norms set by the regulator.
The Board had halted business transactions of Asian Life on January 29 after it started distributing dividends without raising its paid-up capital to Rs 500 million as directed by the regulator in September.
Asian Life, which currently has a capital of Rs 360 million, had distributed Rs 48.5 million as dividends among its promoters and few public shareholders.
Since then the company was banned from selling new insurance policies and was asked to take the regulator´s permission before settling claims. It was, however, allowed to collect premiums on policies sold in the past.
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