Section 53: Functions, Duties and Powers of the Board

1) All functions to be performed and all powers to be exercised by the insurance company, other than those to be performed by the general meeting of shareholders, shall be performed and exercised by the Board, subject to this Act, laws in force and the memorandum of association and articles of association.

2) It shall be the duty of directors to operate an insurance company in the interest of insured or general public shareholders by managing and mitigating overall risks, maintaining proper corporate governance, and guaranteeing that there will be no obstruction in the insurance company’s day-to-day operation.

3) The other functions, duties and powers of the board of directors shall be:

(a) For systematic performance of the operation of the insurance company in a well-managed manner, to prepare and implement necessary rules, regulations, work plans, directives, etc. under this act, relevant laws or Nepal Insurance Authority directives,

(b) To prevent risks or risky situations in the operation of  the insurance  company and to prepare guidelines for risk management, claim payment, management of assets and liabilities, internal control system  budget and other necessary matters as per policies and strategies of the insurance company,

(c) To prepare policies for all activities to be performed by the insurance  company and to supervise the daily operations to manage the insurance company efficiently,

(d) To maintain the capital, capital fund or other moveable and immovable assets as prescribed by the Nepal Insurance Authority,

(e) To regularly monitor the policies adopted by the insurance company, analyse them and provide necessary directions to the management of the insurance company,

(f) To present the audited financial report to the general meeting and

(g) To perform other functions as directed by the Nepal Insurance Authority from time to time.