One Company is not Applicable to One Agent Mini Insurance Company, Five Hundred New Agents are Being Trained

Kathmandu: In small life insurance companies, one company and one agent are not applicable. Rajuraman Poudel, executive director of the Insurance Authority, told Bimapost that currently there is no mention of this issue in the Micro Insurance Company Act and the Authority does not have one company and one agent micro insurance.

While the authority will not apply this provision to small life insurance companies, agents who are working in life insurance companies will be allowed to work in small life insurance companies. The Nepal Insurance Authority has informed that the micro insurance companies brought by the Nepal government for low income people are service oriented and the agents working in the micro insurance companies will not be limited.

The authority has decided not to apply the system of one company and one agent to the small insurance companies, as the agents who rely on the same insurance companies to provide only small insurance are not seen to get relief for the micro insurance companies.

According to the rules of Nepal Insurance Authority, the rule of one insurance company and one agent is applicable. The insurance authority has been tightening the regulations to make the agent profession fair as the insurance agent is the backbone of the company.

Pratapman Shrestha, CEO of Kest Micro Chief Executive Officer Life, said that this arrangement should not be implemented because the target of micro insurance companies will be small.

He said that it is not possible to work in the same company in the micro insurance companies that have been put into operation to increase the access of insurance covering the low income groups.

Chief Executive Officer (CEO) of Guardian Life Insurance, Chirayu Bhandari, said that the authority’s decision was positive as no agent was ready to work due to the rule of ‘one agent, one company’ as the small insurance company provides only small insurance.

Chief Executive Officer (CEO) of Guardian Life Insurance, Chirayu Bhandari, said that the authority’s decision was positive as no agent was ready to work due to the rule of ‘one agent, one company’ as the small insurance company provides only small insurance.

Chief Executive Officer (CEO) of Guardian Life Insurance, Chirayu Bhandari, said that the authority’s decision was positive as no agent was ready to work due to the rule of ‘one agent, one company’ as the small insurance company provides only small insurance.

Small insurance companies are currently busy taking exams and training to hire agents. The companies are also in confusion as the separate law for the agents of micro insurance companies has not been prepared.

What will be the facilities that the agents will get if they work only in micro insurance? Nothing is decided. In such a situation, the authority source said that because the new agents do not find the basis that they will work only in micro insurance, they are trying to use the full-time agents who are currently working.

However, in the case of large insurance companies, the authority has strictly implemented the policy of taking action if the agent of one company is found to be affiliated with another company. The authority has been saying that the insurance fee earned for a life insurance company, when the business is transferred to another insurance company, it can affect the overall financial statement.Although it should be applied to micro insurance companies as well, the authority has provided that the license should be issued only after the examination of new agents, but for the time being, there is no binding requirement of ‘one agent, one company’ in micro insurance.

The two insurance companies have created 500 new agents within a few months of the start of business.