Appellate Court stays Insurance Board’s directive to slash agent fee
Patan Appellate Court has stayed Insurance Board’s reduction of commission rate for non-life insurance agents until final verdict.
The board had slashed slashed the commission of non-life insurance agents by one-third in January to be effected from mid-January.
But the insurance agents moved to court asking to overturn the move.
After the court ruling, the board has backed its move to enforce the new reduced commission.
The non-life insurance agents were to be paid a maximum of five per cent commission on the premium of policy issued from the previous rate of 15 per cent. The board, instead, had added policy holders benefit.