Kathmandu. KATHMANDU: The license of the first batch of agents who have been renewed through the online system by the Nepal Insurance Authority (NIA) is about to expire.
The three-year series is going to start from December 1. The Authority has implemented the provision of renewing the agent license or issuing new license from December 1, 2022 with a three-year period. Prior to this, the authority had been issuing new licenses which would be valid for a period of one year.
The NRA has been operating in the fiscal year 2078 from March 20, 2021. The agent license renewal service for 79 was launched online. The license of insurance agents and surveyors issued before November 7, 2022 was renewed for three years in the case of those who were renewed by July 31, 2080. The licenses of those who missed the renewal were automatically canceled.
After the initial test renewal service was successful, the authority later made the online system mandatory for the issuance and renewal of all types of licenses from December 1, 2022. All the licenses issued after November 8, 2021 have been extended for three years.
Clause 91 (3) of the Insurance Act 2079 states that the license period of the insurance intermediary (including agent, surveyor) and other insurance service providers is three years. The agent must renew the license by submitting the necessary documentary proof before the expiry of this period.
Clause 43 of the Insurance Rules, 2081 states that the proof of working as an agent is } ‘Renewal of the insurance policy’ in the percentage prescribed by the Authority.
The regulation has a provision for the percentage fixed by the Authority. The authority has not been able to fix the percentage even as time has passed by. What percentage of the old policies should be renewed by the agent for renewal of license? What will be the provision of renewal of insurance policy in case of agents who are doing agent profession by selling only insurance policies which have to pay single premium premium? These issues remain unanswered.
Kedar Nath Adhikari, central president of the Association of Professional Insurance Agents, said that there are some complications in the renewal of agents’ license. According to him, the discussion was held on not to apply the provisions related to the renewal of old insurance policies for the first year, the active insurance policy should be 1 percent in the second year and the criteria for renewal of insurance policies in the third year based on the market conditions. “I wasn’t part of the discussion, but my friends told me that we talked about it,” he said. As there is not much time left, the Insurance Authority should now decide on this issue soon.
Provisions relating to renewal of license in the Insurance Act, 2079{
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Section 94 Sub-section (1) Provisions Relating to Renewal of License: If an insurance intermediary or other insurance service provider desires to get the license renewed, it shall submit an application to the Authority before the expiry of the period of the license, along with the prescribed fees and other details.
Section 94 Sub-section (2) If any insurance intermediary makes an application for an extension of the time limit stating the reason for failing to apply for the renewal of the license within the time limit referred to in Sub-section (1), the Authority may extend the time limit for a maximum of three months if the contents are found to be appropriate after making necessary inquiry.
Sub-section (1) of Section 95 Provisions Relating to Cancellation of License: If any insurance intermediary or other insurance service provider makes an application for the renewal of the license within the period referred to in Section 94, his license shall ipso facto be revoked from the expiry date of the license.
Sub-section 2 of Section 94 does not clearly mention the period within which an application should be made for the extension of the license. However, the provision that the deadline can be extended for a maximum period of 3 months means that the application for extension should be submitted within 3 months of the expiry of the license period.
Provisions relating to renewal of license in the Insurance Rules, 2081
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Sub-rule (1) of Rule 43: An insurance agent shall apply to the Insurance Authority for the renewal of the license with the recommendation of the concerned insurer before the expiry of the period of the license.
Sub-rule (3) of Rule 43: A certificate of payment of renewal fee as referred to in Schedule 7 has to be submitted.
Sub-rule (4) of Rule 43: If an application for extension of time limit is made, it may be renewed on payment of late fee as referred to in Schedule 7 on the date of expiry of the time limit for making the application.
Schedule 7: Renewal fee for renewal of license shall be Rs. Rs 1,000 to be paid.
Authority:
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Managing Director and Spokesperson of the Insurance Authority, Sushil Dev Subedi, said that the government would move ahead without any difficulty in the issue of renewal of agents’ license. “We have to follow the standards in the Acts and Regulations,” he said, “But we are issuing a circular in 1-2 days to maintain ease in this matter.” ’
