NIA Implemented new rule that can cancel insurance agent’s license

Kathmandu; Nepal Insurance Authority (NIA) has implemented a new directive that can be cancel the license of insurance agents. revising the standards for the institutional governance of insurer.

A new provision has been inserted to revoke the insurance agent’s license by altering point number 36 (3) of the directive on institutional governance of insurer, which was published today but was passed with an outdated date.

There is a provision to cancel the insurance agent’s license if the insurance agent provides misleading information health, income source age and others details about the insured throughout the insurance process.

The provision makes no mention of what happens if the insured provides false information or if the insurance proposal form is filled by the insurance company’s employee instead of the insurance agent. Thus, this provision hits only to insurance agents’, that may be demoralized to insurance agents.

According to the new rules issued by president of NIA, Mr. Surya Silwal, the insurance license will be revoked even if the employees of the insurance company have filled the proposal form of the insured.

After becoming Chairman of the Insurance Authority, Surya Silwal has been working to strangle insurance agents. Previously, Insurance agents were prohibited from insuring themselves and their families. However, the clause was altered this time, but the insurance agents have expressed their displeasure that the new rules has been added to revoke their license.

It has yet to be reveled who recommended Surya Prasad Silwal, chairman of Nepal Insurance authority to make that decision. It is unclear whether microinsurance companies or any of the market CEOs hands on this matter.