Kathmandu. KATHMANDU: Nepal Insurance Authority (NEA) has issued a directive to life insurance agencies to crack down on life insurance agents spreading rumours on social media.
In the last 2 points of the 7-point directive issued on Monday, the authority has given some special homework for life insurers. Now the insurer will have to monitor the activities of the agent working for his company.
It shall now be the responsibility of the insurer to examine the sales materials presented by the insurance agent while selling the insurance policy to the insured through any means. Apart from this, the insurer should make arrangements to analyze and address the complaints received from any customer regarding the agent.
As per the directive, every life insurance company should make arrangements for regular monitoring of insurance publicity carried out by their agent through social sites.
Apart from this, the insurer has to keep a separate record of the complaint about the agent who sells the insurance policy by giving false and false assurance to the insured. The details regarding the number of complaints received, the nature of the complaint, the resolution given by the insurer and the action taken should be submitted to the Authority regularly every quarter.
“It is hereby informed that insurance agents and insurers violating this circular and other regulatory provisions issued by the Authority will be punished as per the Insurance Act, 2079 BS for selling insurance policies, giving false information, misleading publicity and making exaggerated claims or concealing the true nature of the insurance policy,” the NRA wrote in a warning letter at the end of the circular. ’
According to Section 95 (a) and (b) of the Insurance Act, 2079, the Insurance Authority can cancel the license if any act is done against the Insurance Act or the Rules, Byelaws, Directives framed under the Act or the directives issued by the Authority.
