Beema Samiti became the Nepal Insurance Authority :. Beema Samiti has changed its Name to Nepal Insurance Authority with the implementation of the Insurance Bill-2079 (Nepal Beema Pradhikaran). President Bidya Devi Bhandari signed this new Insurance Act-2079 on 23 Ashoj 2029. Tuesday marked the official start of the insurance bill’s implementation. 31 days after the new Insurance Act-2079 was made public in the Rajya Sabha. The committee was meant to serve as an authority when the Act went into effect.
The committee’s work will now be continued by the authority. Which will continue to be a stand-alone entity with unique capabilities. It can quickly grant or revoke insurance licenses, determine how much capital will be created, and do other things. The committee did not have this authority in the past. The committee has been renamed the “Nepal Insurance Authority” in accordance with the Insurance Act of 1979, and as of Tuesday, the authority’s official function to regulate insurance professionals has begun. According to Surya Prasad Silwal, head of the recently established body, the new Insurance Act has given the authority additional autonomy and jurisdiction.
He claims that after the authority is formally operational. The insurance development fund and the insurance interest protection fund should establish. The Nepal Insurance Authority will continue to be the organization responsible for regulating the insurance industry, according to the Insurance Act of 2079, and it will also serve as the government of Nepal’s insurance advisor. According to the stakeholders, the Act has given the Nepal Insurance Authority more autonomy and authority.
Beema Samiti became the Nepal Insurance Authority
There is a legal framework that allows the authority to perform tasks like figuring out the capital and capital fund for the insurance business. Taking the necessary steps to reduce the risk for the insurance business, promoting microfinance companies. To give low-income groups access to insurance, and coordinate with the provinces about insurance. The money should obtain from the government, according to a legal obligation. 50% of the regulatory fee for microinsurance that the authority receives from Bimak. At least 33% of the regulatory fee from Bimak and money from other sources all go into the fund. A requirement of the authority is the existence of an insured interest protection fund.
In the event that an insurer violates the law. The authority has the authority to purchase another insurer, merge or merge insurers, and transfer insurance business. Authorize the authority to merge or merge insurers, suspend. The licenses of such insurers or stop operating and revoke the license. In a similar vein, the law stipulates that the authority may create an insurance information center to gather and arrange information about the insurance industry. Assemble an expert panel to study and look into claims of fraud, fraud, or fraud in the insurance industry, and create an insurance-related foundation for training and research in the field.
According to the law, insurers may open branch offices in Nepal or overseas with the authority’s prior consent. The insurer must put up money in the proportion and total set by the authorities. In order to fulfill their requirements related to the insurance industry, insurers must additionally keep a separate mandatory reserve fund. The Act mandates that insurers keep a reserve and claim payment funds, as well as a separate “catastrophe fund,” to cover potential losses from catastrophes. A legal requirement specifies that the insurer must set aside at least 30% of its issued capital for public sale and that its total assets must exceed its total liabilities.
A legal requirement prohibits anyone other than a licensed insurer from conducting insurance-related activities. Within four months of the conclusion of the fiscal year, a report should sent to the government by the authority.
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