Section 86: Appointment of Auditor of Insurer

1) The insurance company shall appoint auditor as per prevailing laws.

2) Notwithstanding anything mentioned in sub-section (1), any of the following persons shall not be appointed as an auditor of the insurance company:

(a) Substantial shareholder, director or his\her close relative,

(b) Chief Executive Officer or his\her close relative,

(c) Insurance Mediator of the insurer, employees or his\her family member,

(d) In case of ex-employee, if three years had not expired after leaving from the office,

(e) A person working as a partner of any director or chief executive officer, or employee of the insurer,

(f) A person with financial interest with the insurer or his/her family member,

(g) The insured who had undertaken insurance form the insurer in the amount exceeding the prescribed limit,

(h) A person who had been appointed as auditor of the concerned insurer for three consecutive years,

(i) Member of the Board of Nepal Insurance Authority, an incumbent employee of the Nepal Insurance Authority or their partner or their family member,

(j) A person, who is disqualified to be appointed as auditor or disqualified to continue to hold office as auditor as per prevailing laws.