Kathmandu: Nepal Insurance Authority has taken measures to restrict the practice of enjoying agency incentives from various insurers by the same individual. The Authority has implemented an agency license tracking system based on their permanent tax account number (PAN).
The Authority has made it mandatory to submit PAN in the insurance regulatory management information system (IRMIS) to renew an agency license. Further, the regulatory authority has instructed all the insurers to submit the name of agencies in English. Earlier, the names were submitted in the Devanagari language which made it difficult to track the duplication in license based on the agency’s name.
In Section 91 (7) of the Insurance Act 2079, there’s a provision that “only one agency license of the same type of insurer shall be granted to an individual”. The Authority has also advised the insurers to ask their existing agencies for self-declaration of their insurer.
The Authority has instructed all the insurance companies to update the details of all the agencies by Falgun 6, 2079. The license renewal date is due on Chaitra month of every year.
There are 2,18,179 agencies in life insurance companies alone. In the Insurance Act, the agency license does not have to be renewed for three years, so the renewed or newly obtained license will remain valid for three years.