Cooling-Off Period Sparks Blame Game Between Insurance Authority Officials and Board Members

Kathmandu – Officials of the Nepal Insurance Authority and members of its board have been seen shifting responsibility to one another over the controversial cooling-off period imposed on insurance agents, a provision that has drawn strong criticism from agents across the country.

Insurance agents recently approached the regulator demanding that the provision be amended. During discussions, agents argued that the restriction imposed on them is stricter than the cooling-off period applicable to chief executive officers (CEOs). According to participants, officials of the Authority told the agents that former board member Ganesh Pandey, representing the Ministry of Finance, had pushed for the implementation of the provision.

When asked for comment, Pandey stated that the matter had been brought forward for discussion and was ultimately approved by the board. He indicated that the decision reflected the collective position of the Authority’s leadership rather than that of any individual board member.

Insurance agents have been urging the regulator to abolish the one-year cooling-off period. They argue that the rule has created additional difficulties for agents who are already restricted to working with only one insurance company at a time.

Under the current provision introduced by the Authority, an agent who leaves one insurance company and begins working for another cannot switch again to a different insurer until one year has passed. Agents contend that this restriction is excessive and limits their professional mobility.

Om Bahadur KC, representing the Insurance Agents Association Nepal, has argued that it is inappropriate for agents to be subject to a longer cooling-off period than CEOs. He said the Association has already raised its concerns with the regulator.

Agents maintain that the rule discourages professionals from remaining active in the industry by making it difficult to change affiliations in response to market opportunities or business considerations.

Before implementing the provision, the Authority reportedly sought feedback from insurance companies and held discussions with industry stakeholders. The measure was eventually endorsed through the board process and formally brought into effect.