Section 29: Granting License

1) In case the Nepal Insurance Authority, upon examination of the application under Section 28 and the documents enclosed therewith, finds that the applicant is capable of operating an insurance business, after collecting prescribed fees, issue a license within 60 days from the date of receipt of application.

2) While granting license as per sub section (1), the Nepal Insurance Authority shall clearly specify the type of insurance business that can be undertaken by the insurers pursuant to Section 61.

3) Unless any date is mentioned from which the license shall be effective, any issued license under sub-section (1) shall be effective from the date of issuance of such license.

4) The Nepal Insurance Authority may while granting license specify necessary terms and conditions by giving due consideration to the existing position of the insurance company and interest of the insured.

5) Notwithstanding anything mentioned in sub-section (4), the Nepal Insurance Authority may alter the terms and conditions to be complied with by the insurer while undertaking the insurance business by issuing directives under this act.

6) It shall be the duty of the concerned insurer to abide by such terms and conditions prescribed in sub-sections (4) and (5).

7) The license issued under this section to the Section to the Section insured under this section insured shall not be transferred.

8) Notwithstanding anything contained elsewhere in this Section 34, if the applicant had not submitted the required details and documents as per section 28 or If the infrastructure to operate insurance transactions is not adequate or due to any reasons if the Nepal Insurance Authority thinks that it is not reasonable and appropriate to issue license for operation of insurance transactions for protection of interests of insured, the Nepal Insurance Authority may deny to issue license to operate insurance transactions and in case when the Nepal Insurance Authority had denied to grant license, the applicant shall be provided with reasons of refusal, in writing, within 60 days from the date of application.