Insurance companies instructed to set targets by 28th of every Nepali month

KATHMANDU, SEPTEMBER 10: The Nepal Insurance Authority (NIA) has instructed life insurance companies to establish their insurance targets by the 28th of each Nepali month. In a lately issued circular, the authority directed companies to complete tasks related to setting insurance targets for agents, offering incentives, or launching schemes by this deadline.

"There is a recurring practice among companies to sell policies late into the night on the last day of the month to meet their insurance targets. To discourage this, the authority has instructed that targets be set two days prior to the month’s end," explained the authority’s spokesperson and director, Sushil Dev Subedi.

Additionally, the circular instructs life insurance companies not to approve any insurance policies on the last day of each quarter. This measure is intended to prevent the overlap between the financial report update date and the cutoff date for incentives and other benefits provided by insurers.

"On the last day of each quarter, companies are required to update their financial reports. Approving policies on that day can compromise the accuracy of financial data, which is why companies have been directed not to approve any policies on the quarter’s final day," Subedi added.