Kathmandu. The Nepal Insurance Authority (NEA) has issued a 5-point directive to the insurance agency after voices were raised against the vague provisions regarding the renewal of insurance agents’ licenses.
Issuing a circular in the name of all licensed insurers, the authority has directed them to implement the 5-point directive for the renewal of the license of insurance agents. This directive has been issued as per the decision of the Authority on November 30.
Here are the instructions
- Renewal fee for renewal of insurance agent’s license as per Schedule-7 of the Insurance Rules is Rs. Rs. 1,000 and regulation fee Rs. The total cost is Rs 1,500.
In order to renew the license, the life insurance agent has to submit proof that at least 1% of the insurance policies have been renewed in accordance with clause (b) of sub-rule (1) of Rule 43 of the Insurance Rules, 2081.TAG_OPEN_li_18
The personal details (KYC) of the insurance agent in the IRMIS system should be updated by uploading clear and understandable documents.TAG_OPEN_li_17
According to Section TAG_OPEN_li_15 94 (2) of the Insurance Act, 2079, an insurance agent who has not been able to renew the license within the period of the license can submit an application by paying only Rs. 1,000 as per Schedule-7 within 3 months from the expiry of the time period.
According to Section 95 of the Insurance Act, 2079, the license of an insurance agent who fails to submit an application for renewal within 3 months from the expiry period of the license will automatically be revoked.TAG_OPEN_li_14
The three-year license of the first batch of agents who have been renewed through the online system by the Insurance Authority is expiring 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 that could be renewed for a period of one year.
