Himalayan Life CEO Manoj Kumar Lal Karn Resigns amid Agent Protests

14th October 2025, Kathmandu

In a major development shaking the insurance sector, Manoj Kumar Lal Karn, the Chief Executive Officer of Himalayan Life Insurance Company, tendered his resignation on October 13, 2025.

Himalayan Life CEO Resigns

This significant corporate move comes as a direct consequence of persistent and escalating protests by the company’s insurance agents, whose core demand for a higher policy bonus rate could not be met by the outgoing CEO. The intense pressure from the field-level workforce ultimately led to a leadership vacuum, underscoring the vital role of agents in Nepal’s insurance industry and the financial stress points within merged entities.

Understanding the Core Conflict: The Demand for NPR 50 Per Thousand

The primary catalyst for the widespread agent agitation was the demand for a minimum bonus rate of NPR 50 per thousand of sum assured for the insured policyholders. The Professional Insurance Agents Association of Nepal, spearheading the protest, maintained that this rate was necessary to align the company’s offerings with those of its direct competitors, thereby preserving the trust of policyholders and ensuring the viability of their sales profession.

• Financial Feasibility: CEO Manoj Kumar Lal Karn’s reported stance was that meeting the NPR 50 per thousand demand was not financially feasible for the company, which ultimately prompted his resignation. This indicates a deep-seated disagreement between the company’s management, focused on financial stability and regulatory compliance, and the agents, who prioritize market competitiveness and customer satisfaction through attractive bonus rates.
• Current Bonus Rates: Publicly available data on Himalayan Life’s recent bonus announcements shows varying rates based on the policy type and term. For example, for the fiscal year 2078/79, bonus rates for some plans ranged from a minimum of Rs 35 to a maximum of Rs 90 per thousand, with other plans showing rates as low as Rs 18 per thousand for shorter terms. The agents’ unified demand for a minimum of NPR 50 per thousand suggests they believe the company’s weighted average or common plan rates are insufficient. This comparison with peer companies highlights the pressure on Himalayan Life, an entity recently formed from the merger of Union Life, Prime Life, and Gurans Life Insurance, to establish a strong, unified, and competitive financial standing.

The Agents’ Seven-Point Manifesto: Beyond the Bonus Rate

While the bonus rate demand was the headline issue, the protesting agents, under the banner of the Professional Insurance Agents Association of Nepal, articulated a broader set of demands. These seven key points illustrate a profound distrust in the company’s management and operational transparency:

• Mandatory Minimum Bonus Rate: The primary demand for the minimum bonus rate of Rs 50 per thousand, ensuring the rate is comparable to other leading life insurance companies.
• Maintaining Best Interest of the Insured: A call for the company to prioritize and consistently maintain the best interests of its policyholders.
• Control Management Negligence: A strong appeal to curb what the agents perceive as negligence and malpractice within the top management.
• End Irregularities in the Company: A demand for increased transparency and the cessation of reported internal irregularities.
• Stop Discriminatory Policy: An end to policies perceived as discriminatory against agents or specific groups within the company’s structure.
• Stop Playing with Insured Trust: A plea to rebuild and safeguard the trust of the policyholders, which they argue has been eroded by the company’s practices.
• Resignation of Incompetent CEO: The ultimate demand, which has now been fulfilled, calling for the resignation of the CEO deemed incapable of addressing their concerns and steering the company effectively.

The escalating nature of the protest, which culminated in agents physically blocking the CEO and other staff from company premises, reflects the intensity of this multi-faceted conflict and the agents’ determination to enforce a change in leadership and policy.

The Aftermath: Leadership Void and Regulatory Silence

Following the resignation of Mr. Manoj Kumar Lal Karn, who was appointed CEO after the successful merger of Prime Life, Gurans Life, and Union Life Insurance, the company is now navigating a significant leadership void. As of the immediate announcement, Himalayan Life Insurance has not publicly named an acting or interim Chief Executive Officer.

Potential Interim Leadership: Given the management structure, the company’s Deputy Chief Executive Officer, Kapil Kumar Dahal, is a likely candidate to temporarily assume leadership responsibilities, although an official announcement is pending.

Regulatory Stance: The Nepal Insurance Authority (NIA), the regulatory body for the insurance sector, has a vested interest in maintaining market stability and policyholder confidence. While the NIA’s specific, immediate public response to this particular leadership crisis is not yet detailed, the wider Professional Insurance Agents Association of Nepal has previously indicated its intent to petition the Insurance Authority, the Ministry of Finance, and other relevant bodies concerning the agents’ demands. The NIA has been actively involved in other recent, large-scale issues like the Gen Z protest insurance claims and regulating new frameworks, suggesting it is well-positioned to step in and monitor the situation to ensure a smooth transition and resolution.

The resignation of a CEO under public pressure from the sales force sends a powerful signal throughout the country’s insurance market, highlighting the crucial need for a balance between corporate financial strategy, regulatory requirements, and the fundamental incentives and demands of the extensive agent network. The next steps for Himalayan Life will involve urgently appointing a new leader who can successfully navigate the internal dissent and address the agents’ demands while maintaining the financial health of the merged entity.

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