Kathmandu. There are only three months left for the completion of four years of the implementation of the Insurance Act, 2079. The Insurance Act envisages an autonomous and empowered regulator. <\/p>\n
From working as an advisor to the Government of Nepal regarding insurance, the responsibility of formulating and implementing necessary programs to make it systematic, regular, competitive and reliable is on the shoulders of the NRA. <\/p>\n
Section 5 of the Insurance Act specifies the functions, duties and rights of the Authority through 20 points. It is the responsibility of the Insurance Authority to fully utilize the powers given by the Act for the implementation of the Act and for the smooth development of the insurance sector. <\/p>\n
Although the Authority has fulfilled its rights and duties on all the other points stipulated in the Act, it has been observed that the leadership of the Authority i.e. the Board of Directors is shaking hands to take policy decisions on one of the 20 points. That is, the eighteenth point out of 20 is “to operate and perform other necessary functions of the Insured Welfare Protection Fund”. The officials of the authority have surprised the entire insurance sector by not making any progress on this point in a transparent manner. <\/p>\n
Insured Interest Protection Fund is a fund set up by depositing the amount received from the authority, insurer or any other party for the protection of the interest of the insured. The main purpose of which is to invest as per the need for the benefit of the insured, whether it is to compensate the insured in case of a crisis, or to cover the poor under the security umbrella of insurance. <\/p>\n
Clause 150 of the Act states that there shall be an Insured Interest Protection Fund under the NRA. The Act has a provision that the amount allocated by the Authority for such a fund, the amount fixed by the Authority from the life insurer, should be deposited in the unclaimed fund as per Section 123 if the payment could not be made in the situation of payment under the life insurance policy. Apart from this, Sub-section 3 states that the Insured Interest Protection Fund and other provisions related thereto shall be as prescribed. <\/p>\n
Section 123 (6) of the Act states that other provisions relating to insurance claim settlement and unclaimed fund shall be as prescribed. <\/p>\n
Rule 86 of the Insurance Regulations 2081 provides for the amount to be collected in the Insured Interest Protection Fund. Sub-rule (2) of Rule 86 states that if the unclaimed amount is not paid for ten years, it has to be deposited in the Insured Interest Protection Fund within one year. In the case of a non-life insurer, such amount should be used as per the directive issued by the Insurance Authority. <\/p>\n
The NRA has not been able to establish the fund even though the Act has a clear provision regarding the Insured Interest Protection Fund and the source of the amount to be collected in the fund through the regulations. The issue of establishment of the fund has been prioritized in the second five-year strategy and annual policy and programs of the NRA. But the irony is that the authority has not done this.<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. There are only three months left for the completion of four years of the implementation of the Insurance Act, 2079. The Insurance Act envisages an autonomous and empowered regulator. From working as an advisor to the Government of Nepal regarding insurance, the responsibility of formulating and implementing necessary programs to make it systematic, regular, […]<\/p>\n","protected":false},"author":5,"featured_media":245582,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45067,45159,45099],"tags":[],"class_list":["post-312684","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-important-en","category-news-en","category-regulatory-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/312684","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=312684"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/312684\/revisions"}],"predecessor-version":[{"id":312685,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/312684\/revisions\/312685"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/245582"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=312684"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=312684"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=312684"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}