Kathmandu. Nepal Insurance Authority (NIA) has taken action against two companies including Sagarmatha Lumbini Insurance.

The NEA has taken action against Sagarmatha Lumbini Insurance and Lord Buddha Reinsurance Broking Pvt Ltd.

Nepal Electricity Authority (NEA) has slapped a fine of Rs 2 lakh to Sagarmatha Lumbini Insurance. The authority has imposed a fine of Rs 200,000 as per clause (a) of sub-section (4) of Section 138 of the Insurance Act, 2079 for acting against Section 25 (2) of the Property Insurance Directive 2080.

Clause 25 (2) of the Property Insurance Directive 2080 states that the insurer cannot provide any kind of discount, deduction or concession on the insurance premium of the insurance policy to be issued under the Property Insurance Directive except in the case of direct insurance.

Similarly, the authority has also imposed a cash fine of Rs 5,000 as per the sub-section (6) of Section 138 of the Insurance Act, 2079 for not complying with the provisions of Section 15 (1) and (2) of the Reinsurance Brokers Directive 2078.

Clause 15 (1) of the Reinsurance Broker Directive 2078 states that a company licensed as a reinsurance broker cannot transfer its ownership without the approval of the NRA. Clause 15 (2) states that if a licensed organization of a reinsurance broker wants to change the ownership, it should make an application to the Authority stating the reasons.