Insurance Board reviews some important policies

ShareSansar, December 25:

The Insurance Board has effected some important policy-wise changes for the insurance companies.

A meeting of the regulator held yesterday has decided to initiate action against the insurance companies if they fail to submit insurance amount to emergency insurance fund by the end of Poush.

The IB took this decision after some of the insurance companies failed to submit the sum by the end of Mangshir despite its initial directive to that effect.

Another important decision taken by the IB is that the insurance agent cannot charge more than 5 percent commission from next month, stating that the policyholders have been suffering due to excessive commission charged by the agents so far.

The regulator has also decided to give continuity to 10 percent discount on any insurance scheme if the client, individual or institution, directly approach the insurance company for a scheme.

Similarly the IB has decided that in case of the insurance of the officials and other employees of non-life insurance companies, the insurers, from Magh onward, cannot hire an agent from their immediate family or those who have financial interest in the deal.

In the case of life-insurance companies, none of these companies can appoint an agent from the immediate family members of their employees.

Yet another important decision taken by the regulator is that the insurance company cannot take any agent commission or other charges except for the processing of the scheme when insuring a government agency or its properties.

The Insurance Board has also formed a taskforce under the CEO of Shikar Insurance to start working on an unified software for the insurance companies as per the criteria set by the Board.

The taskforce has been asked to submit its plan for the software within seven days.