Nepal Insurance Authority Penalizes SALICO and Lord Buddha Reinsurance Broker

Kathmandu — The Nepal Insurance Authority has taken action against two institutions, including a reinsurance brokerage company, imposing financial penalties for regulatory violations.

The authority penalized Sagarmatha Lumbini Insurance Company Limited (SALICO) and Lord Buddha Reinsurance Broker Pvt. Ltd. for failing to comply with insurance-related regulations and directives.

SALICO was fined for violating Section 25(2) of the Property Insurance Directive, 2023, which prohibits insurers from offering any kind of discount, rebate, deduction, or concession on insurance premiums for policies issued under the directive.

For breaching the provision, the authority imposed a fine of NPR 200,000 on the company under Section 138(4)(a) of the Insurance Act, 2022.

Similarly, the authority stated that Lord Buddha Reinsurance Broker failed to comply with provisions outlined in Sections 15(1) and 15(2) of the Reinsurance Broker Directive, 2021.

As a result, the company was penalized under Section 138(6)(a) of the Insurance Act, 2022. Since it was the company’s first offense, the authority imposed a cash fine of NPR 5,000 and issued a warning to fully comply with all directives and legal provisions in the future.