Professional Insurance Agents Association Submits Recommendations to Nepal Insurance Authority
Kathmandu – The Professional Insurance Agents Association Nepal (PIAAN) has submitted a set of suggestions to the Nepal Insurance Authority, addressing regulations, facilities, and pressing issues in the insurance sector. The association emphasized the need for attractive packages to draw more agents into the profession and proposed measures to make the field appealing to the next generation.
The association recommended updating the training curriculum for new agents by incorporating essential topics such as the Nepal Insurance Policy 2080, the Insurance Act 2079 BS, the Insurance Regulations 2049 BS, and various directives issued by the authority. They also urged the inclusion of previous agreements between the Nepal Insurance Authority and the association to ensure agents are well-prepared and incentivized.
For Life Insurance Agents:
Regarding the process of obtaining a life insurance agent license, the association requested an alternative to the current proposal of passing +2 exams. It suggested allowing those who have completed prior training or have previously held licenses, including those who missed renewal deadlines, to obtain and renew licenses based on their School Leaving Certificate (SLC) qualification. They further proposed simplifying the process for agents to transfer between companies, allowing transitions within seven days. Furthermore, the association recommended mandatory in-person training for at least four to five days, followed by a transparent written examination with same-day results.
The association also proposed revising the “One Agent, One Company” provision in the Insurance Act 2079 to allow agents to work with multiple companies, as practiced in India. They argued this change would expand insurance coverage and support the growth of the sector. Additionally, they called for promotions to be based on performance and ability, and for the reduction of the Tax Deducted at Source (TDS) rate, which is currently higher than in neighboring countries. They also suggested introducing a final tax system for agents’ income to address tax-related disparities.
For Non-Life Insurance Agents:
For non-life insurance agents, the association emphasized the importance of streamlining training, licensing, and renewal processes similar to those for life insurance agents. It also highlighted the need to curb distortions in the sector caused by direct insurance practices by individuals or companies, which reduce government revenue and hinder job creation. The association urged the authority to implement a system ensuring business is conducted only through agents, alongside introducing a standardized 15 percent commission for non-life insurance.