Kathmandu. The Nepal Insurance Authority (INSURANCEA) has issued an 18-point unified directive in the name of life and non-life insurers. The AUTHORITY has issued directives in the name of insurers to improve the report received during on-site and non-on-site inspections of insurers from time to time. The NRA has drawn serious attention to the complaints received regarding insurers in the interaction and discussion related to insurance at the state and local levels.
The CHIEF Executive Officer of the insurers will be responsible if it is found that the directives issued as per the decision of the AUTHORITY on March 15 are not fully complied with. In addition, the NRA has warned that action will be taken against the CHIEF Executive Officer as per the Insurance Act, 2079 BS if the directives are not followed.
These are the AUTHORITY’s 18-point directive
- To develop minimum physical infrastructure of the state, branch and sub-branch offices of the insurer (tables, chairs, computers, printers, drawers, meeting rooms, service rooms and overall management of the office) (within two months),
- Mobilizing manpower in the state, branch and sub-branch offices of the insurer as per the criteria set (for the time being 5 employees in the state office, 4 in the branch and 2 in the sub-branch should be mandatory),
- Managing the branch offices of the insurer in such a way that an officer-level employee is the head of the office,
- Establishing branch÷sub-branch office in the district designated to the insurer and operating in accordance with Budan No. 1, 2 and 3,
- Such training insurers who spend at least 2% of the employee expenditure on employee training and career development for enhancing the skills of the employees will conduct such training at the state and branch level and submit its report to the AUTHORITY,
- The Guidelines on Institutional Good Governance under Institutional Social Responsibility, 2075, to run programmes proportionately in the area÷ub-areas
- To issue an insurance policy after the payment of insurance fee by completely discouraging borrowing insurance, to inform the insured after receiving the amount if the insurance fee is paid by cheque,
- To give written information about the delegation of such powers to subordinate offices in administrative, financial, claim payments, etc.,
- Delegation of authority to clear claim payments up to Rs 50,000 in agriculture and livestock insurance and up to Rs 200,000 in motor and property insurance from state and branch offices as well as inform authority about the delegation of powers,
- Provision for immediate release of partial and mature life insurance cover so that the amount is deposited in the insured’s bank account,
- Updating customer identity and identifying the broad customer of the insured,
- Updating the risk assessment report of the insurer in accordance with the Prevention of Money Laundering Guidelines, 2075,
- Documents confirming the income of the insured while assessing the risk, health check-up report; Mandatory attachment of a fully filled proposal form, agent’s moral hazard report and other documents,
- Making arrangements for the survey of events happening at the local level to be carried out by the surveyors within the concerned local area,
- Send the surveyor’s final report to the Authority for necessary action,
- Strengthening of internal good governance and control system by regularly monitoring subordinate offices,
- Ensure strict implementation of approved insurance rates and also from subordinate offices,
- The concerned state office of the AUTHORITY shall mandatorily provide the documents and details sought during the on-site inspection of the offices of the insurer within the stipulated time.
