(1) The board of directors shall appoint an executive head for the operation and management of the insurer subject to this Act, the regulations made under this Act, the charter of the insurer and the regulations.
(2) The tenure of the Executive Chief shall be for a maximum of four years and he shall be eligible for re-appointment for one further term.
(3) Notwithstanding anything contained in sub-section (2), the Board of Directors may at any time remove the Chief Executive if his performance is not satisfactory. But before removing him from the position, he should be given a reasonable opportunity to submit an explanation.
(4) When appointing the executive head, the board of directors shall appoint a person with the following qualification and experience and inform the authority within seven days of such appointment:-
(a) At least master's degree or equivalent in insurance, monetary, banking, finance, commerce, management, public administration, statistics, mathematics, economics or law and five years in management level in insurance sector, eight years in banking or financial sector and having acquired at least seven years of experience including at least one year of experience in insurance in both fields, OR,
(b) Chartered Accountancy or at least Bachelor's degree or equivalent in insurance, monetary, banking, finance, commerce, management, public administration, statistics, mathematics, economics, engineering or law and at least ten years in the insurance sector at least at managerial level, Fifteen years in banking and financial sector or at least twelve years experience in insurance sector if in both sectors.
(5) The following person cannot be appointed as the executive head of the insurer:-
(a) Being unable to serve as a director due to physical or mental infirmity,
(b) Being blacklisted or released from the blacklist in accordance with the existing law, has not completed three years,
(c) Director, close relative or employee of the director, insurance intermediary or consultantWorking as,
(d) Worked as an auditor of the same insurer during the last three: years (e) working as a securities dealer or being a member of the securities market,
(f) Having a financial interest in the insurer,
(g) This provision shall not be considered as a hindrance to the appointment of the President or the Chairman of the Board of Directors as the Chairman or Director of the Insurer by the Government of Nepal.
(h) The person who has become the executive head has not been in such position for less than six months, (h) Three years have not been completed since the date of serving the prison sentence according to the prevailing law,
(h) Having obtained a permanent residence permit of a foreign country, however, this provision shall not apply to the executive head of foreign insurers and insurers established in joint ventures.
(k) racketeering, fraud, corruption, money laundering, human trafficking; Convicted by court for criminal offenses such as banking offences, insurance and other fraud, body hostage- or kidnapping,
(l) Being in public office.
(6) In this section: Notwithstanding anything contained elsewhere, an insurer or foreign insurance company having a majority shareholding of a foreign insurer may appoint its employee as chief executive subject to this section.
(7) The branch office of a foreign insurer located in Nepal shall appoint an executive head based on qualifications and experience as per this section.
(8) Other conditions and benefits of the remuneration service of the executive head shall be as determined by the board of directors subject to the instructions issued by the authority from time to time and the conditions and benefits of his service shall be determined at the time of his appointment.