Kathmandu. The Nepal Insurance Authority (NIA) has warned of action against those spreading misinformation about insurance. Issuing a circular, the Arbitration Management Section of the Authority has warned all the insurance agents who have obtained the license.

Through the same circular, the authority has also directed not to make misleading, exaggerated and unauthorized publicity related to insurance against the Insurance Act, 2079 BS and the prevailing code of conduct. 

The NRA issued the circular after a complaint was filed that misleading publicity was being made that would adversely affect the insurance business.The NRA has said that its serious attention has also been drawn to such activities taking place at present.

According to the circular issued by the authority, under Section 19 of the Insurance Agent Directive, 2083, the code of conduct of the insurance agent states that the insurance agent should not make false and exaggerated publicity about the capacity and business of the insurer or the insurer he or she represents.

The Authority has warned the agents and intermediaries who spread false and misleading information against the same provision.The NRA has also warned of taking stern action as per the prevailing laws if found carrying out such activities in the coming days. is the circular issued by the authority: