Kathmandu. KATHMANDU: Nepal Insurance Authority (NEA) has authorised the insurance company to determine the rate of Professional Indemnity and Professional Liability Insurance issued by the non-life insurance company.
The authority has provided in point 3.4 of the Professional Liability and Indemnity Insurance Guideline 2073 BS and the minimum rate of non-rate insurance transaction
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In place of the provisions in point number 6, the insurer has introduced a provision that the insurer can determine the insurance rate itself in such a way that the insurer will make adequate provision for the reinsurance rate of insurance.
{{TAG_OPEN_a_14}Professional Liability Insurance Article: An Information, Article by Dibus Timalsena – Insurance Khabar
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With the amendment to the guideline, the way has been opened for the insurer to come into operation with additional facilities. Earlier, when the authority had fixed the limit of the insurance rate, the insurers could not bring the policy with additional risk bearing facility as per the market demand or include additional facilities in the existing insurance.
Professional liability and indemnity insurance policies are issued to protect against the liability that may arise on the project due to the actions or inactions of professionals working on a project. In order for this policy to create an obligation on the project to pay a third party, the following four elements must exist:
(a) The acts or omissions of the professionals working in the project must have been due to their error, negligence or negligence.
(b) The incident may have occurred unknowingly on a third party due to the act of the professional in good faith.
c. The aggrieved third party must file a claim with the insured for reimbursement for the financial loss caused to him or her.
d. After the obligation to pay to a third party arises, there must be actual financial loss for legal remedies in order to defend that liability.
