Kathmandu. Nepal Insurance Authority (NEA) has published a draft of the Insurance Literacy Framework. The NRA has also sought suggestions from stakeholders before issuing the draft in final shape.
In the draft, the authority has emphasized the role of three main aspects for insurance literacy. The insurance authority, the insurance company and the insurance intermediary. The NEA has requested the insured to make the role of an insurance intermediary included in the draft literate in such a way that it is not commission-oriented and profit-oriented, but honestly for the benefit of the insured.
Obligations of insurance intermediaries covered in the draft{
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- When interacting directly with customers and the general public, do not give priority only to business profit or commission, but also to fully comply with the business conduct keeping the larger interest of the consumer and insurance awareness at the center.
- Before selling the policy, explain to the potential customers in simple language the features, covers, exceptions, premiums and claim process of the concerned insurance plan and help in increasing their insurance knowledge.
- To develop insurance skills among the citizens, teach practical aspects such as how to fill the proposal form correctly, how to secure the required documents and how to pay the insurance premium through digital means.
Provide professional advice to the potential insured to choose the right insurance plan to suit their needs by analyzing the financial situation and actual risk of the insured.TAG_OPEN_li_23
To dispel the negative misconceptions, superstitions and misconceptions about insurance in the society and to create a positive insurance attitude among the citizens by making them understand that insurance is an essential means of risk management and not an unnecessary expenditure.TAG_OPEN_li_20
The draft expects the role of an insurance intermediary only up to the point before the sale of insurance policies. After selling the policy, the agent should make the insured as aware as possible about the insurance policy, loan facility, payment price facility, general information about the surrender price, etc.
Apart from this, how to use the moratorium period of 15 to 30 days for payment of insurance premium? What are the losses that may occur due to non-payment of installment amount of insurance within this period, consequences of non-payment of insurance premiums, and risk in insurance? And what is the bonus? The insured has the right to know about these issues.
The more clearly an insured understands the terms, services and facilities of the insurance and the technical aspects of the insurance, the more he will adopt the insurance. However, if the insurance policy is sold with insufficient information, then in some case a particular condition of the policy is explained by some other aspect, the insured may feel cheated and may even take an unpleasant decision to cancel the policy in anger. Therefore, the agent should make the insured literate about insurance by playing the role of a good helper and well-wisher and not by cheating, lying, deceiving and cheating.
