Kathmandu: The Insurance Board mulls to put full stop on the decade long practice of back-dated transaction among insurers. It has instructed all the insurers to strictly make real time transactions.
The regulatory authority issued such instruction after it learnt that the back-dated transaction among insurers, mostly life insurers is still rampant. It has instructed all the insurers to share updated data through Application Programming Interface(API) to its portal. The insurers have been provided deadline of Asar 28 for integration through the development of API between Insurers Core software and the Board’s data base server.
On Friday, in an interaction with the CEOs and IT Department Heads of the insurers, the Chairman of the Board, Surya Prasad Silwal, warned all the insurers to be transparent and make transactions on live date.
The Board has directed all the insurers to update real-time report to its data base. From Asar 32,the last date of the current fiscal year 2078/79, it is mandatory for all the insurers to perform real-time transaction.
For a long time most of the insurers, mostly life insurer have been practicing back-dated transaction for the sales of insurance policies. Back-dated transactions take place when an insurer accepts a policy proposal today but issues the policy on previous date. Such practices have been rampant since the agency of the insurers take time to arrange cash for the first premium from their clients.
