KATHMANDU: The Professional Insurance Agents Association of Nepal (IA) has urged the Insurance Authority of Nepal (IA) not to cut the incentives being provided to the agents.
The association has made this request by sending a letter to the authority on Tuesday. The task force formed for the amendment of the Insurance Rules, 2081 has also submitted for the amendment of the amended regulations, but the insurers have complained that the insurers have cut the incentives given to the agents by the insurers. Therefore, according to the Act, Regulations, International and National Standards, the past will not be affected and the future will be affected, so the association has demanded the NRA to facilitate the working environment for the agents by directing the insurers to do so.
While providing the incentive amount as per Rule (3) and Sub-rule (2) of Rule 44 of the Insurance Regulations, 2081, the amount mentioned in Schedule 10 on the basis of the policy issued by each agent will be released only from the date of the implementation of the regulation.
Similarly, Rule 44 of the Insurance Rules, 2081 provides that in addition to the commission amount as per sub-rule (1) of the Insurance Rules, 2081, the incentive amount can be provided on the first insurance premium of life insurance not exceeding the limit fixed by the authority per agent. The authority has fixed the maximum limit of such incentives at 18 percent of the first insurance premium earned by the concerned agent. In this regard, the association has also demanded the authority to facilitate the business growth based on the business growth adopted by the company.
