Himalayan Life Insurance, formed after the merger of Union Life, Gurans Life, and Prime Life Insurance in April 2023, is now facing serious internal conflict. The merger had created one of the biggest life insurance companies in Nepal by capital, but the company’s business growth has not matched expectations.
Insurance agents, who are considered the backbone of the company, have been unhappy since the merger. They claim that the company has failed to treat them fairly and has not maintained proper management after the unification.
Agents demand fair bonus rates
The main issue raised by the agents is the declining bonus rate given to policyholders. They are demanding that the bonus rate be set at 50 rupees per thousand. Agents say the falling bonus rate has made it harder to attract new customers.
They also accuse the management of lacking transparency and failing to maintain good governance. For the past week, the agents have been protesting, demanding the resignation of CEO Manoj Lal Karn and Chairman Sulabh Agrawal.
Internal division and accusations
According to the agents, instead of solving the issue through discussion, CEO Karna tried to divide the agents by offering certain individuals special treatment. They allege that the company intentionally created divisions among employees and agents.
The agents insist that the company must provide bonus rates equal to those of its competitors. They also accuse Karn of making the situation worse by spreading misleading information and creating tension within the organization.
Six days of protest lead to resignation
The agents had been protesting for six consecutive days without being able to meet top officials. Their frustration grew when CEO Karna stopped showing up at the office. The agents then locked the main gate of the office and staged a sit-in, demanding his resignation, calling him an “incompetent CEO” who could not handle the crisis.
On the fifth day of the protest, Karn finally resigned. The board of directors has already accepted his resignation.
Interim CEO appointed
Following his departure, the company appointed Kapil Kumar Dahal as acting CEO to handle daily administrative and management tasks until a permanent replacement is found.
Protest continues despite resignation
Even after Karn’s resignation, the agents have continued their protest. They say that the resignation alone does not meet their demands. Their key demand is that the bonus rate for policyholders must be at least 50 rupees per thousand.
One female agent said, “Our company may be large in capital, but our bonus rates are lower than other companies. It’s hard for us to convince people to buy insurance. If policyholders don’t get good returns, they will cancel their policies.”
Heated talks with management
Tensions remained high during discussions between the agents and senior officials, including Acting CEO Kapil Kumar Dahal, ACEO Rajan Prasad Adhikari, and CFO Laxman Gyawali. Dahal assured the agents that their concerns would be reviewed seriously, but the agents demanded written confirmation rather than verbal promises.
They even asked that the management open and discuss the protest letter in front of them, to ensure full transparency. Dahal agreed to consider their request and promised to handle the issue according to their expectations.
