Kathmandu. Prior to the implementation of the Insurance Regulations 2081 BS, the provision of discounting the insurance premium was applicable only to the institutional insured when they came to get direct insurance from the insurer. This provision was distributed on the basis of the circular issued by the Nepal Insurance Authority. The NEA had decided to give 8 percent discount on the insurance premium to the institutional customers coming for direct insurance.
After the implementation of the Insurance Regulations from February 2081, a discount facility has been arranged for anyone who contacts the insurer directly for insurance. The insurers say that since this provision of the Insurance Regulations only addresses the issue of individual customers, the earlier directive given by the Authority to provide discount to the institutional customers will not be revoked. According to them, the regulations have only decided in the case of individual customers.
Prabin Raman Parajuli, president of Life Insurance Association of Nepal, said that both the systems are still in implementation parallel as the objectives of both the systems are different. In a conversation with Insurance Khabar, he said, “The regulation only covers individual customers (insured), so it does not mean that institutional customers will not get 8 percent discount on insurance premium.”
Parajuli said that the Insurance Regulation has made provision for discount on the basis of the insurance agent commission rate to those who come for direct insurance, and the institutional customer has been providing 8 percent discount on the annual insurance premium if the institutional customer contacts his/her director, employee or borrower directly for life insurance.
