Kathmandu: The Nepal Insurance Authority is all set to fully implement its online system to issue and renew insurance agency licenses. After improvements in the online system with the feedback received from stakeholders, the Authority has announced that the online system will be fully live from 5 Magh 2079.
An applicant can submit the application for a new agency license after completion of 4 days of training conducted by an insurer. The fee for a new agency license is Rs. 500. The insurers may charge an additional Rs. 500 for training and official documentation process.
Insurance Act 2079 allows an agency to work only for a single insurer having the same nature of business. The Authority has already instructed all the insurers to ask their agencies to voluntarily choose only one insurer. Prior to the execution of the new Insurance Act, an individual insurance agency was free to work for more than one insurer with the same agency code.
According to the new arrangements made by the regulatory authority, the online examination has been made mandatory to obtain an agency license. The Authority is hopeful that online examinations will promote the production of professional agencies and will restrict the practice of bogus licenses.
Insurance professionals worry about the possible deprivation of aspirants from remote areas who do not have access to reliable internet connectivity and communication devices. And in some geography, even power supply is not available yet. Many areas under Karnali Province don’t have reliable power supply. During rainy seasons too the power supply is interrupted for a long. In a recent example, the flood during the last weeks of Ashoj 2079 has flooded away the power substations and hydropower plant in Karnali Province.