Beema Samiti Issues Directives for Institutional Agency, PSPs too Can Apply for Agency License

Kathmandu: Beema Samiti, the regulatory authority for insurance companies, has issued a new directives for institutional agency license.

The  ‘Directive on Institutional Insurance Agents, 2078’ has the provision of issuing licenses to institutional agents.
Samiti has stated that if the digital payment service providers (PSP) want to get the agent’s license, they have to get permission from their principal regulator Nepal Rastra Bank. It is believed that  this directive has been issued to facilitate PSPs for insurance agency business.

To obtain an institutional agent’s license, at least one of the promoters or key managers must participate in agency training conducted by the Samiti or insurance companies.

The director or the chief manager must have passed at least SEE/SLC( school level board exam) or similar examination.  The provision of institutional agency services must have been mentioned on
the MoA and AoA to apply for the agency license.

The organization willing to get the license of the institutional agent have to submitte the tax clearance certificate and audit report of the previous financial year.  If there is no provision in the constitution of the institutional agent to work as an agent, agency license will not be granted.

The guideline stipulates that anyone willing to obtain an institutional agent’s license can apply to the Samiti with mandatory documents.

Such agents will be able to collect the insurance fee through the electronic system and pay it to the insurance company. They can help to fill up the insurance proposal form through electronic means. Similarly, they will be able to provide information through electronic means on the time of payment of insurance fee.Institutional agents will be able to provide details and information about the insurance products on behalf of the insurer through electronic system.

Such agents must have obtained a license from the concerned body to conduct business through electronic system. But such agents are not allowed to forcibly sale insurance products to the insured.

The institutional agency will not be allowed to refrain from delivering the service once the proposer pays insurance premium.

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