Kathmandu: The Insurance Board mulls to implement strict provision for agency license to control unethical practices by insurers for agency license. Based on the complaints that insurers issue agency license without any training to the new comers and accept insurance proposals from them, the insurance regulatory authority is all set to take the controlling measures.
According to the Clause No. 3 of the Agency Training Directives 2072, an insurer is supposed to conduct three days’ training for the insurance agents before making recommendation for agency license to the Insurance Board. The agency license is issued by the Insurance Board based on the documents and recommendation submitted by the insurers. Despite such provision, very few number of agency training is conducted in practice but too many in paper only.
According to the officials of Insurance Board, a mechanism for online license examination is being made for the new agents. After the completion of the 3 days training, the aspirants are supposed to attend the online examination to qualify for the agency license. The Board is hopeful that such provision will discourage unethical practices among insurers.
In absence of proper training to the new agent, there are very few active agents in the insurance industry. According to the data available, based on new business generation only 10 percent agents are active in the life insurance industry .
