Kathmandu. The current fiscal year 2081 due to impractical directives of the Nepal Insurance Authority. The insurer will not be able to issue the insurance policy after June 15 in the last quarter of July 2018.
Since June is TAG_OPEN_p_17 a month of 32 days, the issuance of insurance policy for four days in terms of working days and five days in terms of number of days is likely to come to a complete halt.
In TAG_OPEN_p_16 a circular issued by the Authority through a circular of 651 challan number on August 1, 2081, the authority has prohibited the insurer from issuing the insurance policy on the date after the last month of any quarter. As the integrated information system of nea brought into operation with fanfare has not been effective, the insurer has been forced to stop the affected service for at least eight working days in a year.
TAG_OPEN_p_15 In this way, the insurer has not been able to issue the insurance policy for the remaining two to three days after September, December, March and June. It has been forced to issue the policy only in the next month on the basis of the insurance proposal received after the 28th of this quarter.
The Authority has issued a circular directing not to issue additional insurance policies for that month after the 28th of every quarter, so the insurers have not been able to sell the insurance policy even after opening the office. In the event of a huge loss due to a single day of insurance, the property owner will have to suffer a huge loss.
Nepal Insurance Authority TAG_OPEN_p_13 (NEA) implemented regulatory information system to collect real-time data on transactions from insurers. The NEA started the trial from February 2080 and implemented this system completely from July 2081.
The Regulatory Integrated Information System (INSURANCE REGULATORY INFORMATION MANAGEMENT SYSTEM, IRMIS) had the regulatory objective of collecting real-time transaction data from insurers and curbing old-date insurance transactions. However, the original purpose with which this integrated information system was implemented has not been achieved.
Since
is ineligible to collect real-time transaction details, the AUTHORITY is completely dependent on the stale data provided by the insurer. For this reason, the AUTHORITY has stopped the sale of insurance policies for about eight days in four quarters at the rate of two to three days every quarter.
Nepal Rastra Bank TAG_OPEN_p_10 (NRB) has adopted a zero-tolerance policy against tampering with real-time transaction statements while collecting data related to banks and financial institutions. For this reason, no bank or financial institution practices tampering or deleting transaction details by entering the core banking software.
How long will the Insurance Authority continue its policy of implementing an effective integrated information system and halting the transaction by not taking strict regulatory action against the insurers doing business data?
