Bema Samiti launches unified IT guidelines 2076 for all the insurance companies operating in Nepal; new provisions to make the companies more transparent and reliable with timely utilization of IT

The Beema Samiti has released a collective directive “IT Guidelines 2076” for all the insurance players in Nepal under which the regulator has prescribed some regulations for the safe and scientific use of Information Technology by the insurance companies in Nepal. The major highlights of the directives are as follows:

Clause 3: Use and operation of IT by the insurance companies

All Insurance companies needs to ensure the availability of IT based practices in all the branches where all the designated officials as well as the agents should have an access to the available IT technology.

Clause 4: Data center

All insurance companies need to establish a data center regarding its customers and also needs to form a cloud data center.

All insurance companies also need to ensure the proper disaster risk reduction mechanism in order to preserve the data center, ensure a back-up of the data center at a branch office beside the central office.

All insurance companies need to establish its Core Application Server at its head office whereas the foreign insurance companies can establish the same at their head office or the main branch office.

Clause 5 and 6: Company website

All insurance companies need to maintain up-to-date website. The website must contain the information on address, map, telephone no, email, fax, sitemap, vision, mission and objectives of the company, name, image, designation and appointment date of the board members and the executive heads, name and contact details of the information officer, names and contact details of the heads of all the branches and the liaison offices, their addresses and the contact details, list of existing insurance policies that are properly categorized, list of previous insurance policies which are no more in practice, license date and code number of active insurance agents, process of getting insurance policies with the company, detail procedure of submitting and receiving the insurance claim by the insured person, annual rate of bonus for the insured customers, details of the reinsurance policies that the insurance company subscribe to, audited financial reports and highlights of major indicators of the last five fiscal years, quarterly reports of the company, a well updated and interactive feedback section for the customers.

Clause 8: Email

All insurance company need to have official email ids with their domain names, must ensure official email ids for at least the executive level officials at all the branches.

Employees of the company can use their official email ids only for the official purpose.

Clause 11: Insurance Software

All insurance companies must make use of the real-time Core Application that is operational from all the enters at a same time.

The insurance application needs to have a provision of Day End for every transaction day and no one should be able to modify the previously made transactions.

All insurance companies must provide individual log in ids for its employees to log into the insurance application.

Insurance companies must use the insurance software’s based on the anti-money laundering and anti-terror funding guidelines.

Clause 13: Digital payment

All insurance companies also need to make arrangement for digital payment of insurance premium, policy renewal and other payments via a licensed digital payment channel

Clause 16: IT audit

Insurance companies must make IT audit of its information system from a recognized IT auditing firm in an annual basis and must submit the audit report within six months of the new fiscal year to the Beema Samiti