Unit 5: The Insurance Regulatory and Development Authority in Nepal
5.1 Nepal Insurance Authority
The Nepal Insurance Authority (NIA) — the insurance regulator: the Insurance Board (Beema Samiti)’s successor-and-transformed entity under the Insurance Act 2079 B.S. (2019). The Authority’s mandate: the insurers’ licensing-and-supervision; the market’s conduct-and-solvency discipline; the policyholders’ protection; the sector’s development. The historical line (U1.6’s recap): the Insurance Board (2025 B.S. era) → the modern Authority (2079 B.S.) — the regulator’s own evolution matching the market’s.
5.2 Composition
The Authority’s structure: the Chairperson and the members (the Government’s appointments — the committee’s selection machinery); the full-and-part-time members’ mix (the insurance, finance-and-economics, and legal expertise); the executive office (the members’-and-departments’ working structure: the supervision, the actuarial, the market-conduct-and-legal faces); the provincial-extension debates (the federal era’s questions).
5.3 Function, Duty and Power of the Insurance Regulatory Development Authority in Nepal
- Licensing — the insurers, the intermediaries (the agents, brokers, surveyors of U7), the renewal faces.
- Supervision — the inspection-and-examination powers (the on-site-and-off-site faces); the returns’ calls (the periodic reports).
- Solvency — the capital-and-reserve requirements; the investment rules; the actuarial valuations (the life funds’ certification).
- Market conduct — the policy terms’ approval (the tariffs-and-wordings); the claim practices’ monitoring; the advertising’s discipline.
- Protection — the policyholder’s complaint machinery; the grievance hearing; the protection fund faces.
- Development — the market’s promotion (the insurance-penetration drives); the micro-insurance-and-agriculture faces; the education (the insurance-literacy programmes).
- Direction-and-enforcement — the directives; the managers’-and-auditors’ appointments’ approvals; the actions of U5.6.
5.4 Chairperson and Member Qualification
The Act’s qualifications-and-disqualifications (the exam’s frame, stated generically — the section-numbers from the Act’s text): the qualification’s faces — the insurance-and-finance expertise; the administration’s experience; the professional-and-academic standards; the age-and-term limits; the disqualifications — the conflict-of-interest (the insurer’s connection bar), the insolvency-and-conduct faces (the criminal convictions), the prior removal’s bar.
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