Kathmandu. Now the whole country is in an election atmosphere. The Election Commission (EC) has enforced the code of conduct for the political parties, the government and the general public in view of the upcoming general election on March 4.
It is natural to discuss the election code of conduct in the election environment. However, an agent who is interested in the insurance sector and is engaged in the promotion of insurance by reaching the doorsteps of the general public should also be aware of the do’s and don’ts i.e. professional ethics. This should always be followed when assigned to professional responsibilities.
The Nepal Insurance Authority (NEA) has implemented the code of conduct for insurance agents in 3 main points and 25 sub-points. In order to make the insurance market of Nepal transparent, credible and professional, the Authority (then Insurance Committee) has implemented the code of conduct for insurance agents.
The behavior of the agent, which is the main link between the insurer and the insured, determines the image of the entire industry, so it has been given high priority.
Key Code of Conduct to be followed by an insurance agent
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Agents must adhere to the following requirements in order to maintain their professional dignity:
Introduction and Transparency: The agent must always carry a license and show it if the customer requests it. In addition, they should only provide accurate information about the capital structure and financial position of the companies they represent.
Details Collection and Submission: The details to be mentioned in the proposal form should be filled by the customer and submitted to the insurer along with the relevant documents.
Advice and Services: should be made clear to the customer about the terms, features and risks contained in the policy. In addition, the customer will have to be fully supported in the payment of premium, renewal, change of nominee or claim process.
Financial Honesty: TAG_CLOSE_span_36 The official reimbursement of the insurance premium received from the customer should be paid immediately and deposited with the company on the same day or the next day, if possible.
Actions that the agent should not do{
The code of conduct also prescribes certain prohibited actions for agents. Insurance policies cannot be sold without renewal of license. The personal details of the customer should not be given to any person or organization other than the insurer. Unnecessarily harassing or misbehaving with customers is strictly prohibited.
Unhealthy Competition: No one shall be allowed to induce a share of his commission or to interfere unduly in the business of other agents.
Why is a code of conduct necessary?
The Code of Conduct of Insurance Agents is not just a rule, it is the backbone of the insurance industry. Its importance can be understood in the following points:
The right of the customer to get the right information is ensured. There is less chance of fraud and it is easier to pay the claim when it is needed.
Professional dignity and credibility in the market increases for agents. Clear procedures will help avoid legal hassles. Public confidence in the insurance sector will be enhanced. Removing unhealthy competition will lead to the development of healthy markets and have a positive impact on the overall economy.
The insurance sector can be established as a dignified and service-oriented sector only if the insurance agents follow these rules in letter and spirit.
If any agent acts contrary to this, action can be taken up to the cancellation of the license.
