Kathmandu. KATHMANDU: Nepal Insurance Authority (NEA) has directed all licensed insurance agents and intermediaries not to make false and misleading and exaggerated publicity that will adversely affect the business of insurance companies and insurance agents.

NEA has said that it has received complaints and complaints that false and misleading publicity related to insurance is being carried out affecting the business of various organizations. Drawing the attention of this issue, the NRA has directed to stop such activities immediately.

Clause 2 (h) of Schedule 1 of the Code of Conduct under Section 19 of the Insurance Agent Directive, 2083 BS states that no insurer should make false or exaggerated publicity about the capacity of any insurer or the capacity of the insurer to represent him/her.

Stating that its serious attention has been drawn towards the activities against the existing provision, the NEA has directed the government not to make any kind of misleading, exaggerated and unauthorized publicity that is against the Insurance Act, 2079 BS and the prevailing code of conduct.

The NRA has warned of taking action as per the prevailing laws if such activities are found taking place in the future. The directive was issued through a letter issued by the Arbitration Management Section of the Authority on August 22, 2083. The letter has also been sent to all licensed insurers for information.