KATHMANDU, March 17: The government is forming a new entity to regulate the insurance sector. Insurance Authority will be set up dissolving the existing Insurance Board.
A bill to modernize the regulation and monitoring of the insurance sector has the provision of a new entity. The bill which is under consideration at Finance Committee of House of Representatives has aimed at amendment and integration of insurance related laws.
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Participating in the discussion, chairperson of Insurance Board Chiranjivi Chapagain stressed for the need of new legal provision to match the international standards of insurance comapnies. “The existing act can’t address the need of the changed context, therefore we need an updated law.”
According to Chapagain, the bill aims at modernizing insurance sector, strengthening the capacity of monitoring body, managing health and agriculture insurance and limiting National Insurance Corporation under the Authority.
The Authority will also function as the government’s insurance advisor. In addition, it will also recommend the government in formulating various insurance policies, issuing license to establish insurance companies, renew them, and regulate and monitor them as well.
The house panel also discussed various ways to regulate health insurance.
