Kathmandu. The Nepal Insurance Authority has issued different guidelines on various specialized topics for easy regulation and institutional governance of the insurance sector. With a history of more than fifty years, the Authority has issued more than a hundred guidelines.
The old guidelines are repealed after being revised and new guidelines are issued according to changing times and circumstances. Of the guidelines issued by the Authority, a total of 62 guidelines are in existence at the moment. The Authority is issuing one-page, five-page, and fifty-page guidelines one after the other.
In the past four years, the highest number of guidelines have been issued in the history of the Insurance Authority. The Authority has issued timely directives and guidelines to control the use of digital technology, fraud in insurance claims, unhealthy competition among insurers, financial statements of insurers, risk-based capital, weak governance and legal loopholes.
Since a unified document of the directives issued by the Authority is not ready, even the Authority is struggling to find and manage the directives. Insurers are also finding it difficult to preserve such documents. On the other hand, when a study is required on a subject related to different directives, there is a compelling situation of having to find and study different directives. It is too late to include all the directives issued by the Authority in a unified document and issue a unified directive.
The regulator of banks and financial institutions, Nepal Rastra Bank, has been including its directives and circulars in the unified directive. The unified directive includes all the directives for a certain period of time. The availability of a unified guideline makes it easier for banks and financial institutions to make decisions on any matter or to seek guidance.
