Kathmandu. The Nepal Insurance Authority has made various arrangements to make the foreign exchange arrangements for reinsurance purposes more effective. Accordingly, the Authority has directed all non-life insurers to submit documents for foreign exchange.
While submitting a proposal to the Authority for foreign exchange to send funds abroad for the purpose of facultative reinsurance, the Authority has made it mandatory for the insurer to submit proof of the proposal to the Nepal reinsurer as per the Reinsurance Directive, 2080 and proof that the Nepal reinsurer has rejected the proposal within 24 hours.
Similarly, when an insurer reinsurances with a foreign reinsurance company, the foreign reinsurance company should be rated as per the Reinsurance Directive, 2080 and after paying foreign currency for reinsurance, the foreign reinsurer should submit proof of payment to the Authority within 15 days of the end of each quarter.
The directive states that the letter submitted to the Nepal Insurance Authority for recommendation of foreign currency exchange should be signed by the Chief Executive Officer of the insurer and the copies of all documents submitted for foreign currency exchange should be signed by the concerned employee along with the seal of the insurer.
