The explanation was sought based on findings of investigations launched by a three-member probe committee headed by Board Chairman Dr Fatta Bahadur KC.[break]
“He (Aryal) has been given seven days to submit his explanation on why the Board should not take action against him for his involvement in filing of a fake insurance claim and issuance of a directive for personal gains,” two people familiar with the matter told Republica.
If Aryal´s clarification is doubtful and questionable, the Insurance Board -- by referring to the Employees´ Regulation -- can go to the extent of sacking him from his job.
Earlier, the Ministry of Finance had asked the Board to launch a probe into Aryal after several complaints were lodged against him alleging his involvement in corruption, fraud and abuse of authority. Following this, a committee was formed under Narendra Man Shrestha, a joint secretary at the law ministry and a board member of the Insurance Board. The task given to this committee was later transferred to another committee formed under Board Chairman Dr KC.
“The findings of investigations launched by both the committees were same and in many cases Aryal was found involved in suspicious acts,” a source said, adding, “A report, comprising the findings, has been submitted to the Insurance Board, based on which the regulator will take action against Aryal.”
Aryal, who joined the Board as its executive director in February 2012, was known as a tough implementer of insurance laws and played a lead role in introducing long-overdue reforms in the insurance sector.
But he fell in hot water after he was charged with demanding compensation for total loss of a jet ski -- owned by a company promoted by him -- by purchasing insurance policy after occurrence of the accident, which is illegal. It is said Aryal also used influence to alter the cause of accident from “drowning in the Koshi River” to “fire”.
He is also said to have been involved in policy corruption, which paved the way for his firm, Aryal Construction, to collect millions of rupees in additional payment from an insurance company during claim settlement process.
Aryal did not receive Republica´s call, while Dr KC denied to make any comment.
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