Kathmandu. People who are rich but do not have a degree in higher education from the university will not be allowed to become the director or chairman of the insurance company. This provision will come into force after the new Insurance Act comes into force. A master's degree has been made mandatory to become an operator of an insurance company. But after passing Chartered Accountancy (CA), it has been clarified that one can become an operator.

To become an operator of an insurance company, one must have a CA, or a bachelor's degree in insurance, banking, finance, commerce, statistics, management, public administration, statistics, mathematics, economics, or law.

A bill has been passed by the Finance Committee of the Parliament to disqualify people who have a bachelor's degree in science and other subjects from becoming directors of insurance companies.

In addition, the businessmen who have been given permission to trade securities by the Nepal Securities Board have also been barred from becoming the operators of insurance companies. It is mentioned that the term of the operator of the insurer will be 4 years and he may be re-appointed later. However, provision has been made to become an expert operator only for a maximum of 4 years.