Kathmandu: Nepal Insurance Authority issued circulars to all the insurers to abide by the provision of Section 95 of the Insurance Act 2079. The Authority has instructed all the insurers to make sure that their agencies are not working for more than one insurer having the same nature of business.
It has directed the insurers to provide a clearance letter to an agency member that opts to work for any other insurer. Without the clearance letter, an agency member cannot join any other insurance company. The Authority believes that such a provision would help insurers to recover their bad debt insurance agencies.
It has been learned that agency members having agency licenses of more than one insurer have been enjoying loans for a long time without timely repayment of such liabilities.
The Authority is making all possible efforts to short out the issue of dual agency licenses. It is hopeful to restrict such practice with the tracking of the permanent account number(PAN) which has been made mandatory to receive incentives from the insurers.
