Section 98: To Regulate, Inspect and Monitor

1) The Authority may regulate, inspect, or monitor the activities of any insurer, insurance intermediary, other insurance service provider, or the person or organisation concerned with such insurer, insurance intermediary, or other insurance service provider at any time.

2) In case having suspicion or receiving a complaint about the business of any insurer, insurance intermediary, or other insurance service provider, the Authority may regulate, inspect or monitor at any time by assigning any expert or employee of the Authority to make onsite supervision of the office of the insurer or the insurance intermediary or other insurance service provider or making the insurer to bring the related documents, accounting and financial statements, insurance policies or deeds, related, reports and information in authority.

3) While performing regulation, inspection and monitoring of the insurance business as mentioned in sub-section (1), the authority shall follow internationally established principles, values, standards and, best practices and customs.

4) The expert or employee assigned for supervision as per sub-section 2, may demand, observe, inspect examine, research, investigate the logbook, data, information, notices, reports, electronically created information or any other necessary documents, ask for original or duplicate copies or inquiry about the same with the concerned personnel.

5) It shall be the duty of the insurer, insurance intermediary, other insurance service providers, insured, and persons related to the insurance business to provide the information requested under sub-section (4).

6) If the expert or employee assigned to regulate, inspect or monitor under this Section finds some faults or weakness in the works performed by the insurer, its workings and actions or documents, any actions and working or documents being suspicious or not being as per the rules and regulation framed under this Act or directives issued by the Nepal Insurance Authority, the expert or employee may make concerned official to give detail explanation or description.

7) The expert or employee assigned for regulation, inspection or monitoring, if realised, may issue any directions or instructions by informing the authority, and it shall be the duty of the insurer or concerned personnel to follow this instruction.

8) The expert or employee assigned to regulate, inspect or monitor shall submit the report of inspection or monitoring to the Authority within the time determined by the Authority.

9) In case some sort of cooperation is sought by the Authority from the Government of Nepal, any bodies of the Nepal Government, any bodies of provincial or local level, other regulatory bodies or organisations to perform or to be performed the function of regulation, inspection or monitoring under this Section it shall be the duty of these authorities or organisations to co-operate to the Authority

10) Other provisions related with regulation, inspection or monitoring of insurance business shall be as determined by the Authority.