Kathmandu: Beema Samiti has strictly directed the insurers for real time transaction on the last eve of the current financial year. Issuing a circular today, the regulatory authority has directed all insurance companies to abide by the rule.
Further, Samiti has threatened to take action if any insurer found in manipulation of the real time transaction. The current financial year 2020-21 will end by the midnight of 15 July 2021.
During last FY, the insurers had the practice to continue their business transaction in back date by manipulating in the core insurance software. Now, this year the regulator says ‘day end means day end’.
It seems like insurers, mostly the life insurers won’t be able to achieve much new business as per their earlier target. Due to the lacking of the regulator, the insurers used to work in back date till the 10th of first month of new FY. It means the business obtained in a new FY used to be transferred to the business of past FY.