Controversial Board Appointment at Nepal Insurance Authority (NIA) Ends in Resignation: A Deep Dive into Transparency, Legality, and Political Influence

23rd July 2025, Kathmandu

The Nepal Insurance Authority has once again found itself at the center of a significant controversy, culminating in the recent resignation of board member Radha Kumari Pokharel. Her departure, occurring just five months after a highly debated appointment, underscores persistent issues within Nepal’s regulatory bodies concerning transparency, adherence to statutory procedures, and political interference. This incident has not only reignited public and industry scrutiny but also cast a shadow over the integrity of appointments within crucial financial institutions.

Controversial Board Appointment NIA

Radha Kumari Pokharel’s appointment to the board of the Nepal Insurance Authority on March 14, 2025 (Chaitra 1, 2081), was met with immediate and widespread criticism. The decision, made at a ministerial level by Finance Minister Bishnu Paudel, bypassed established legal protocols and raised serious questions about the candidate’s qualifications and the transparency of the selection process.

Industry stakeholders and legal experts alike voiced concerns over Pokharel’s perceived limited experience in the insurance sector. Reports suggested that her nomination was largely influenced by political affiliations, with Pokharel representing the CPN-UML party. This political maneuvering became even more apparent given that the Authority’s Chairperson, Sharad Ojha, had previously been appointed through a recommendation from the Nepali Congress, highlighting a pattern of political power-sharing in critical regulatory roles. Such practices, observers argue, undermine the merit-based selection essential for the independence and effectiveness of regulatory bodies.

Violations of the Insurance Act 2079: A Breach of Law

The controversy surrounding Pokharel’s appointment directly challenges the clear stipulations of the Insurance Act 2079 (2022). Section 8 of the Act meticulously outlines the qualifications required for members of the Insurance Board. According to the law, candidates must possess a postgraduate degree in relevant fields such as insurance, economics, law, or management. Furthermore, they are mandated to have a minimum of five years of senior-level managerial experience.

However, Radha Kumari Pokharel’s professional background reportedly fell significantly short of these statutory requirements. Her documented experience included only two years of board-level involvement at Bishal Bazar Company Ltd., a stark contrast to the prescribed five years of senior managerial experience. This fundamental discrepancy immediately raised red flags about the legality and appropriateness of her selection.

Adding to the gravity of the situation, Pokharel’s appointment was pushed through solely on a ministerial decision, completely bypassing the necessary Cabinet endorsement. Clause 7(5) of the Insurance Act explicitly states that only the Council of Ministers holds the authority to appoint members to the board. This legal provision is not merely a procedural formality; it is designed to ensure a higher level of scrutiny and collective governmental approval for such critical appointments. The Act further mandates that such appointments must ensure the representation of at least one woman who fulfills all necessary qualifications, a requirement that was arguably compromised in this instance.

Media Scrutiny and Mounting Pressure: The Role of Investigative Journalism

The initial backlash against Pokharel’s appointment was significantly amplified by the relentless investigative reporting of Insurance Khabar, a prominent news portal. Insurance Khabar repeatedly published articles highlighting the illegality of the appointment and the disconcerting silence from the Ministry of Finance regarding the matter. These consistent media reports played a pivotal role in escalating public awareness and generating substantial institutional pressure on both the Ministry and the Nepal Insurance Authority.

While Pokharel cited “health concerns” for her frequent absences from recent board meetings, insiders close to the Authority suggest that the intense public scrutiny and continuous criticism were the primary catalysts for her eventual resignation. This highlights the vital role of independent media in holding powerful institutions and officials accountable and in safeguarding the integrity of public appointments.

The Aftermath: Resignation and Unanswered Questions

Radha Kumari Pokharel tendered her resignation a few days before the official announcement. The Nepal Insurance Authority updated its official website to reflect the change in the board member list only on Tuesday, confirming her departure. The current board now comprises Chairman Sharad Ojha and members Man Bahadur Aryal and Santosh Rijal.

While Pokharel’s resignation may temporarily assuage the immediate controversy, it has undoubtedly left a trail of significant unanswered questions regarding the integrity and independence of the Nepal Insurance Authority. The episode has sparked renewed debates about the pervasive issue of political interference in regulatory bodies and the erosion of procedural transparency within Nepal’s governance framework. Many observers maintain that Pokharel’s appointment was part of a broader political arrangement between ruling parties, effectively undermining the merit-based and legally sound selection processes that are crucial for effective regulation.

Furthermore, the controversy has cast a considerable shadow over Finance Minister Bishnu Paudel. He is now under increased legal and public scrutiny for his direct involvement in facilitating both Ojha’s and Pokharel’s appointments. Legal experts have pointed out that bypassing Cabinet approval and overlooking mandated qualifications could potentially expose the minister to legal consequences, reinforcing the need for accountability at the highest levels of government.

This incident serves as a stark reminder of the internal conflicts within the Authority, the worrying lack of accountability in appointment processes, and the broader challenges of governance within Nepal’s financial regulatory institutions. As the Nepal Insurance Authority attempts to rebuild and restore public trust, the controversial departure of Radha Kumari Pokharel stands as a potent lesson on the indispensable importance of adhering to legal processes and upholding institutional transparency in all regulatory appointments. The path forward for the Authority will require a renewed commitment to meritocracy and independence to ensure the stability and integrity of Nepal’s insurance sector.

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