Kathmandu. Sagarmatha Lumbini Insurance Company and Lord Buddha Re-Insurance Broking have been taken into action. The Insurance Authority (NEA) has taken action against two companies for not following the provisions of the Insurance Directive. 

Sagarmatha Lumbini Insurance, which has been facing action , has been penalized for not complying with the provision of Section 25 (2) of the Property Insurance Directive 2080. 

According to this provision, no discount, discount, deduction or concession can be given on the insurance premium of the insurance policy issued by the insurance company.However, the authority took action after the company was found not complying with the provision.

According to the authority, Sagarmatha Insurance has been fined Rs 200,000 as per the sub-section (4) clause (a) of Section 138 of the Insurance Act, 2079. 

On the other hand, action has been taken against Lord Buddha Re-Insurance for not complying with the provisions of sub-sections (1) and (2) of Section 15 of the Reinsurance Brokers Directive, 2078.According to the authority, the company has been fined five thousand rupees as a penalty.