Kathmandu: The insurance regulator is preparing to introduce a cooling period for life insurance agents. Following the request from Jeevan Bimak Sangh Nepal(JEBISAN), the Nepal Insurance Authority has made preparation to introduce a cooling period for agencies who wish to join any other life insurance company.
The regulatory authority has requested suggestions from stakeholders to advise the duration of the cooling period. Insurance Act 2079 allows individual agencies to work for only one insurer of each type.
JEBISAN has suggested introducing a cooling period following the trend of agencies encouraging their clients to surrender the insurance policies of the previous insurer immediately after joining a new insurance company. Life insurers are hopeful that the cooling period will discourage such wrong practices.
The Authority sent a letter to all life insurance companies on 1 Asar 2080 and said that the agents will be subject to a cooling period. It has also asked the life insurance companies to provide suggestions within 7 days of receiving the letter.
According to subsection 2 of section 95 of the Insurance Act 2079, the authority is going to implement the provision that “If any insurance intermediary or other insurance service provider submits a written application to the authority to revoke his license, the authority may investigate and revoke such license as prescribed”.