Authority’s Warning to the Companies Running Insurance related Business without any approval
Kathmandu: The insurance authority has begun to increase its surveillance on companies that are performing works related to insurance without taking approval. The insurance authority has also drawn attention to organizations that have been working in various excuses under the name of insurance.
According to section 24 of the Insurance Act 2079, no one can do business using any business terms like insurance, reinsurance, insurance fund without obtaining permission from the insurance authority.
Authority said that no transaction, business, industry or trade related to insurance business should be done or conducted directly or indirectly and according to section 153, no transaction related to insurance business should be done with anyone other than the insurer.
The authority has warned against such actions as it has been seen that organized organizations other than insurers have conducted transactions related to insurance business in violation of such legal provisions. Authority says that, if such a thing, there is a provision that you can be fined according to Section ‘A’ of Section 140 of the Insurance Act.
In contravention of this provision, no one shall use words like insurance, reinsurance, insurance fund in the name of his company, firm or organization for any other purpose related to insurance business, trade or industry, and shall not engage in insurance with any other company, firm or organization other than an insurer licensed by the authority. The authority has informed all concerned not to do related business or insurance business.
