Kathmandu. The Insurance Authority of Nepal (NIA) has issued a directive regarding insurance agents on April 10, 2003. It also includes Schedule 1 of the Code of Conduct of Insurance Agents. The code of conduct includes the do’s and don’ts of an insurance agent. We have included the details of the activities that the code of conduct says should not be done but still some agents of non-professional character are doing in violation of the code of conduct.
(a) Unhealthy competition and temptation{
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To give or accept any unhealthy competition in the insurance market, to interfere unduly with the business of other insurance agents or to give back commissions, to give gifts or to show or promise any illegal inducement outside the policy with the intent to encourage the insured to purchase the policy.
Current Situation: Some insurance agents are violating the code of conduct by using terms like discounts and discounts on social media.
(b) Business without permission
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To sell insurance policies without obtaining an insurance agent’s license or renewing the license.
{{TAG_OPEN_span_66} Current Situation: Any other member of one’s family, such as husband or wife, son or daughter, daughter-in-law, daughter-in-law, brother, on the basis of a license issued as an agent, is selling insurance policies by posing as an agent.
(c) Confidentiality and honesty of information{{
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To disclose the details of the customer to any person or organization other than the concerned insurer or to falsely or conceally insure the insured’s health condition, treatment records, age, source of income and documents.
{{TAG_OPEN_span_64} Current Situation: Some agents are also making public the details and photos of the insured through social media.
(d) Abuse and exploitation
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To mistreat the customer, to induce unnecessary extortion or to change the policy unnecessarily against the wishes of the insured.
(e) Unfair pecuniary gain
To receive any part of the amount received for the insurance policy from the insured or the heir of the insured or to receive the amount of the premium until the insurance proposal is approved.
{{TAG_OPEN_span_61} Current Status: Such amount has been collected as unauthorized service charge for taking the initiative to pay the claim for foreign employment insurance.
(f) Dual roles and conflicts of interest
An insurance agent to work as an insurer’s salaried employee, consultant, surveyor, consultant or auditor.
Current situation: Even though he is not an insurance agent himself, his or her family members are working as employees in the insurer’s office.
(g) Violation of rates and conditions{
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To acquire business by breaching the prescribed rate of insurance or to determine the final premium of the policy and to determine the terms of service of the insurance itself.
{{TAG_OPEN_span_58} Current Status: Insurance policies are sold with the assurance or inducement of providing the insured with terms or facilities that are not included in the policy. For example, the insured is being cheated by defining the facility of paying 5% of the sum insured in advance annually as a discount on the annual premium.
(h) Misleading propaganda
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To make false or exaggerated publicity about any insurer who is not an insurance agent or about the ability of the insurer to represent you.
Current Status: There is a tendency to share negative or misleading content about other insurers on social media when they appear on social media or when they are published in the news media.
(i) Forgery and forgery{
To insure, obtain a claim or to act contrary to the interest of the insurer or the insured by any fraud or forgery or forgery or preparation of false particulars or documents relating to the insurance in association with the insurer, the insured or any other party.
Current Situation: Fake recommendation letter for the source of income of the insured, fake health check-up report for insurance underwriting or providing it is being made.
(j) Ownership and Operation Restrictions
A person or institution working as an insurance agent of any insurer or a director of that institution or a member of his or her family to be the founder or director of the concerned insurer or to hold the basic shares.
(k) Violation of law
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To act in violation of the prevailing insurance laws, the Prevention of Corruption Act, the Money Laundering Act or other prevailing laws while carrying on one’s professional business.
Current Situation: Some agents are advising people who have acquired undisclosed assets for money laundering through life insurance or issuing life insurance policies by pressuring the insurer.
