Kathmandu. The Council of Ministers of the Government of Nepal has issued the second amendment to the Insurance Act 2079 BS. Based on the decision taken by the Council of Ministers meeting, the amended provision of the Act was made public by publishing it in the Nepal Gazette on Wednesday.
The government has tried to correct the errors in the sections of the Act issued earlier with general amendments to Section 13, Section 116 and Section 150.
Clause F of Section 13 replaces the word ‘to mediate’ with the words ‘to render reconciliation’. Clause (f) of this section, which covers the functions, duties and powers of the Chairman of the Nepal Insurance Authority, removes the word ‘mediation’ in the dispute between the insurer and the insured and will now be the word ‘reconciliation’.
Similarly, notwithstanding anything contained in Sub-section (1) of Section 116, the words “without the approval of the Authority” have been added later. There is a provision in this section that no insurer will be dismissed even if it is written in the prevailing law, but now there will be a provision that no insurer will be dismissed without the approval of the Authority, even if it is written in the prevailing law.
In addition, the words section 125 in clause (c) of sub-section (2) of section 150 have been replaced with the words section 123.
According to section 125, the amount deposited in the unclaimed fund should be deposited in the Insured Interest Protection Fund if the payment could not be made due to the need to pay under the life insurance policy.
Sub-section 1 of Section 125 states that the liability for the claim of an amount smaller than the limit set by the Authority shall be settled under the claim of a small amount and other provisions related to the payment of claims of a small amount shall be as prescribed in Sub-section 2.
While issuing the Insurance Act 2079, the irrelevant provision of Section 125 was included in Section 150. Section 123, which has been incorporated through the amendment, provides that if the insured or his or her entitled person is not found within the stipulated period as per the prevailing law or if the claim cannot be paid to him, then the amount should be deposited in the unclaimed fund so that the claim can be paid at the time of the claim.
Sub-section 2 (c) of Section 150 of the Insurance Interest Protection Fund provides that if the insured or his entitled person is not found within the stipulated period in accordance with the ongoing law or if the claim cannot be paid to him, then the amount should be deposited in the unclaimed fund so that the claim can be paid at the time of the claim.
