March 23: Nepal Insurance Authority has implemented a provision that one insurance agent cannot work in more than one insurance company of the same type.
In subsection 6 of section 93 of the Insurance Act, 2079, it is mentioned that an insurance agent of one insurer cannot work as an insurance agent of another insurer of the same type of company during the same period.
According to the provisions of the Insurance Act, 2079, the authority has implemented the policy of 'one agent, one insurance company'.
With the implementation of the provision, now one person will not be allowed to work as an agent of more than one insurance company of the same type.
According to the authority, the number of insurance agents has reached 256,322 by mid-March. Among them, 5045 agents are affiliated to more than one insurance company of the same type.
According to the authority, the number of agents affiliated to two insurance companies doing the same type of business is 4,847 and 178 are affiliated to three companies, while 16 are affiliated are to four companies, 2 each with five and 10 companies.
With the implementation of the 'One Agent, One Insurance Company' policy by the Insurance Authority, agents affiliated to more than one insurance company of the same type will now be able to choose only one company online. The agent can choose the company and renew it through the One Time Password (OTP) received on the mobile.
Chairman of the Authority, Surya Prasad Silwal, said that the policy will benefit all the agents, insurance companies and the authority with the implementation of the provision in the Insurance Act.
“We have implemented the provisions of the Act. With the implementation of this arrangement, it will be easy for the agents to renew, and they will work honestly with only one company,” he added.
He said that now the insurance companies will have complete information about their agents, and it will be easier for the authority to regulate them.