Kathmandu. KATHMANDU: The Nepal Insurance Authority (NEA) has taken action related to regulation including fine against two companies licensed by the Authority of Nepal (NEA).
Those facing action against the NRA are Lord Buddha Reinsurance Broking Pvt Ltd and non-life insurer Sagarmatha Lumbini Insurance.
According to the NRA, it has been warned for not complying with Section 15 sub-section (1) and (2) of the Reinsurance Brokers Directive 2078 for the first time as per clause (6) of Section 138 of the Insurance Act, 2079 along with a cash fine of Rs 5,000.
Clause 15 (1) of the Reinsurance Broker Directive 2078 BS states that an organization licensed by a reinsurance broker cannot transfer its ownership without the approval of the NRA. Similarly, Article 15 (2) of the Act states that if a licensed organization of a reinsurance broker wants to change its ownership, it should submit an application to the Authority stating the reasons.
Similarly, Sagarmath Lumbini Insurance has been fined Rs 200,000 for the first time as per clause (a) of sub-section (4) of Section 138 of the Insurance Act, 2080 for violating Section 25 (2) of the Property Insurance Directive 2080.
Clause 25 (2) of the Property Insurance Directive 2080 states that the insurer shall not be allowed to provide any discount, concession, deduction or concession on the insurance premium of the insurance policy to be issued as per the Property Insurance Directive, except in the case of direct insurer.
