It has been one Year Since the new Insurance Act came into Effect and the Nepal Insurance Authority is also in its Second year

Kathmandu : It has been one year since the government repealed the previous Insurance Act 2049 and introduced the new Insurance Act 2079. The Insurance Act registered in the House of Representatives in June 2075 to bring effective regulation in the changed situation and to bring it as an umbrella act in the overall insurance sector has finally been passed. The general amendment of the old Insurance Act and the provisions that the then Insurance Committee was working on through the guidelines were added and came into effect from 8 November 2023.

It has been a year since the release of the Insurance Act. During this period, many improvements are being made in the insurance sector, but some problems have also been observed. However, until now, the Insurance Authority has not discussed the challenges of effective implementation of the Insurance Act. The Insurance Authority has conducted the examination of insurance agents for the first time after the promulgation of the Act.

The Insurance Authority has been adopting some flexibility in the actions to be taken against the insurance companies against the spirit and spirit of the new Act. According to the new Insurance Act, insurance companies that do not submit financial statements on time and do not conduct audits are subject to a fine of millions of rupees. After the promulgation of the new Insurance Act, the Insurance Committee has been transformed into Nepal Insurance Authority since 2026.

The Insurance Authority has not held any program on the occasion of the anniversary of the promulgation of the Insurance Act. This time, the Insurance Authority could not celebrate the anniversary of the Insurance Act as it was associated with the annual conference of the International Association of Insurance Regulators (IAIS). The meeting and conference of the international regulators of the insurance sector is being held in Japan from November 6 to 10. Both the chairman and the executive director of the authority are in Japan for a very important conference where regulators from around the world gather and share the future strategy and experience of Regulation.

-File picture :It is said that the insurance authority is preparing to conduct a review and discussion program soon on the occasion of the anniversary of the commencement of the new act.Although the new insurance law has been successful in addressing the progress in the insurance sector in the last decade, the increase in access to insurance, it has been seen that many aspects of it need to be revised and amended for improvement.

Meanwhile, regulation in the insurance sector started in the name of Nepal Insurance Authority and has entered the second year after completing the first year. Today, Surya Prasad Silwal, Chairman of Nepal Insurance Authority, officially launched the Nepal Insurance Authority.