Nepal Insurance Authority Sets Final Policy Issuance Date for Fiscal Year

Kathmandu — The Nepal Insurance Authority has announced that insurance companies will not be permitted to issue any new insurance policies after Ashar 28 (July 12), marking the official business closing date for the current fiscal year. The decision comes as part of the Authority’s effort to ensure transparency and regulatory compliance in the insurance sector during the fiscal year-end.

In a circular issued to all insurers, the Authority stated that the ban on policy issuance will be enforced to prevent backdated transactions and irregularities that typically arise during the last week of Ashar. It noted that some companies tend to manipulate business figures by issuing backdated policies in the final days of the fiscal year.

To counteract such practices, the regulatory body has brought the closing date forward by four days. From Ashar 29 (July 13) onwards, no insurance transactions will be considered valid for the current fiscal year. The Authority emphasized that it will actively monitor insurance companies during this period through its integrated information system, including strict oversight of policy dates and issuance activities.

The final week of Ashar month is typically marked by a surge in business activity, with insurance companies pushing to meet annual targets. For chief executive officers, branch managers, and marketing teams, it is often seen as a crucial time to demonstrate performance and secure year-end bonuses and incentives. However, this rush has also led to regulatory violations, prompting the Authority to intervene.