Insurance Authority Warns Agents Against Misleading Promotion
Kathmandu — The Nepal Insurance Authority (NIA) has warned insurance agents and other concerned parties against making false, misleading or exaggerated claims in insurance-related promotions.
The Authority said it has received complaints alleging that licensed insurance intermediaries have made false and misleading promotional statements about insurance products, in ways that adversely affect the business of various institutions.
According to the Authority, Section 19 of the Insurance Agents Directive, 2026, read with Clause 2(j) of Schedule 1 of the Code of Conduct for Insurance Agents, clearly prohibits misleading promotion. Under these provisions, agents are barred from making false or exaggerated claims about the capacity of any insurer, including the insurer they represent.
Expressing serious concern over activities that violate these provisions, the Authority has directed that such practices be stopped immediately.
Action Against Violations
The Authority has directed all licensed insurance companies and concerned intermediaries to immediately halt any form of misleading, exaggerated or unauthorized promotion that violates the Insurance Act, 2022, or the applicable code of conduct.
It has also warned that any recurrence of such activities will result in action under prevailing law.
The Nepal Insurance Authority is the statutory regulatory body responsible for organizing, supervising and regulating the insurance business in Nepal.