As per the section 5 of the Insurance Act, 2079 BS, the following are the powers, functions and duties of the Authority: –

• To act as an advisor of the Government of Nepal regarding Insurance,
• To draft the National Policy on Insurance and make recommendation to Government of Nepal,
• To grant prior approval for the establishment of Insurance company, issue license or revoke such license,
• To formulate necessary Bylaws, Directives, guidelines or orders for the Insurance Business,
• To issues licenses to Insurance Intermediaries, renew and revoke such licenses,
• To determine the Capital and Capital fund,
• To prepare and implement the necessary programs to make the insurance business systematic, regular, competitive and credible,
• To conduct or cause to conduct the study, research, trainings, orientation or outreach programs for the development and expansion of Insurance Business,
• To provide the decision on the complaints filed by insured against insurer regarding the determination of insurance liability,
• To settle the disputes concerning various parties of insurance,
• To take necessary actions for minimization of risk in insurance business,
• To prepare and implement the programs for the development of human resources and for the promotion of insurance education for the development of insurance business,
• To prepare and implement the insurance promotion programs to increase the access to insurance by all the people,
• To promote microinsurance business to ensure the access to insurance of the people with low income,
• To cooperate, coordinate and exchange information with other governmental, or non-governmental organizations for the regulation, inspection, supervision and development of insurance business,
• To cooperate with the foreign Insurance Regulatory Agency, international organization and other organizations that conduct study, research and trainings in insurance,
• To represent the Government of Nepal or Authority in international organizations relating Insurance Regulation and to obtain membership of such organizations,
• To operate Fund for protection of Policy holder’s interest and carry out or cause to carry out other necessary activities,
• To coordinate with provinces regarding insurance,
• To carry out other necessary activities relating insurance as a Regulatory agency.