Kathmandu: Insurance agents are united against the recently issued ‘Institutional Insurance Agents Directives 2078’. Beema Samiti(BS), the regulatory authority, had issued the directives last week. Samiti has issued the directives with the objectives to pave the way for institutional agency in the insurance business.
Professional Insurance Agents Association Nepal(PIAAN),the umbrella organization of the insurance agents, has threated Beema Samiti to withdraw the directives or face agitation.
Association alleges that the new directives will affect the livelihood of the individual professional agents. They have accused the government of trying to recruit a few corporates by making millions of agents unemployed. It is estimated that around 0.5 million.
“The regulator seems to push the independent agency service to the basket of the so called corporate house”, Mr. Nanda Prasad Tiwari, President of the Association, said that ,”As we know that bank, insurance, finance, cooperatives are already under the control of handful corporates.”
Tiwari says that they are trying to allow the business house to open a company in the name of the institutional agent and also to capture the commission earned by the agent by keeping the existing agent as an employee.
Association states that individual agents bring the business by assuring the insured with their personal commitment. The agent brings the policy from his relatives and friends with the assurance of good future return. The agents follow up for the payment of premium. At the same time, in case of maturity and in case of death claim payment, the agents will approach the insurer for quick payment of the claim. If the claim delayed, the agency will take stand in favor of the insured. But incase of institutional agents, it’s not possible for the insured to get favour from the corporate agents.
In the course of expanding the insurance business, agents were needed to raise public awareness. That is why agents are available in every corner.
They allege that the insurance companies have tried to discredit the agent by spreading confusion by saying that the agent is taking excess incentives. If companies are illegally distributing incentives, the regulator, BS, must intervene.