Acting Chairman of NIA Madan Dahal Announces Major Reforms for Insurance Sector

Kathmandu – Acting Chairman of the Nepal Insurance Authority (NIA), Madan Dahal, has unveiled a series of new initiatives aimed at reforming and expanding Nepal’s insurance sector. Speaking at a social dialogue event organized by the Nepal Financial Institute Employees Union (FIEUN) in Kathmandu, Dahal outlined key measures that will simplify regulatory processes and improve service delivery within the industry.

A major reform introduced by Dahal is the removal of the requirement for prior approval from the Authority for appointing Chief Executive Officers (CEOs) in insurance companies. Going forward, companies will only need to inform the Authority after a CEO is appointed, streamlining the process and making it more efficient. Dahal emphasized that the move is designed to reduce bureaucratic delays while prioritizing the interests of policyholders.

In addition to this, Dahal revealed plans to introduce a digital claim payment system that will allow insurance claims to be directly deposited into policyholders’ accounts, eliminating the need to visit branch offices. While insurance premiums can already be paid digitally, this new system will improve convenience and speed up the claims process, benefiting both insurers and their clients.

Dahal also highlighted the significant challenge of raising public awareness about insurance in Nepal, which he identified as a key barrier to expanding the sector. He urged insurance companies to invest in public education campaigns to increase understanding of insurance products and their benefits.

Addressing the issue of policy surrenders, Dahal pointed out that it is a problem that stems from both individual decisions and the practices of insurance companies. He called for greater involvement from insurers in addressing this issue and noted that the Insurance Authority would work closely with them to reduce surrender rates.

To enhance the overall efficiency of the sector, Dahal announced plans to implement a rating system for insurance companies, allowing the Authority to assess company performance and take corrective actions when necessary. He also cautioned against the spread of rumors regarding new insurance licenses, urging clarity and transparency in the process and also emphasized the need for mandatory training for insurance agents and surveyors before their licenses are renewed. This initiative, according to Dahal, will help improve the skills of insurance professionals and contribute to a more competent workforce within the sector.

In a bid to strengthen the regulatory framework and promote better governance, Dahal also called for adherence to institutional discipline and the proper implementation of labor laws. He expressed his intention to work closely with the Ministry of Finance to push for further reforms in the sector.