Kathmandu. The Insurance Board has directed all the life insurance companies to recover the loan from the agents by mid-July. The Board has issued a circular to all the companies after finding that the loans and borrowings provided by the insurance companies to the agents are beyond compliance and at risk.
According to the Board, the Commission for Investigation of Abuse of Authority has been repeatedly pointing out that not all agency loans have been recovered till date.
The Board had for the first time instructed all the life insurance companies to settle the loan and borrowings to the agents by mid-July 2021. However, due to strong protests from agents and requests from insurance companies, the Board set back to implement its decision. And later allowed the insurers to recover the loan with their own deadline.
The Board has been showing some flexibility in car and motorcycle loans given to agents for business promotion. But the Board is against any types of cash or housing loans. Life insurance companies have been offering various benefits to retain the agents.