Insurance Authority Allows Policy Issuance Until End of Quarter

Kathmandu – The Nepal Insurance Authority has revised its previous directive and will now allow insurance companies to issue policies until the 31st of the final month in each quarter. The decision comes after continuous lobbying by industry stakeholders, particularly the Life Insurance Association and professional insurance agents.

Previously, the Authority had restricted policy issuance until Ashar 28, effectively shortening the window for quarterly transactions to be recognized within the current fiscal year. This practice had drawn criticism from both insurers and agents, who argued that the limitation negatively impacted end-of-quarter business activity.

In response to the feedback, the Authority issued a circular on Ashar 24, removing items 2 and 3 from the earlier provision. This change ensures that insurance transactions carried out until the last working day of the quarter—Ashar 31 in the current period will now be valid for inclusion in the fiscal year’s financial records.

Kedarnath Adhikari, President of the Professional Insurance Agents Association of Nepal, welcomed the decision, calling it a positive step for the insurance sector.

The new provision addresses a long-standing issue in which insurance plans issued during the final few days of a quarter—typically four to five days were previously not recognized, despite being completed within the timeframe.