Kathmandu. Even after purchasing foreign employment term insurance policy, if you do not go to employment within six months of issuing the policy, the insurance policy will automatically become inactive. As it is inactive, one cannot claim insurance in case of death of an injured, disabled or insured person who has not gone abroad for six months after the issuance of the policy.
The Nepal Insurance Authority (INSURANCE COMMITTEE) has also ruled that the insurance claim will not be filed in the case filed by the family members of the insured who has not gone abroad even after six months and has died in the country.
In its verdict on June 29, 2019, the committee had ordered the insured’s family not to pay the claim amount as the insured had died while not going for employment in the destination country even after six months of purchasing the insurance policy.
Reliable Nepal Life Insurance had issued a one-year foreign employment term life insurance policy in the name of Sudhir Kumar Mishra. Mishra passed away on July 11, 2019, while he was in the country due to the global coronavirus lockdown and could not go for foreign employment. The insured died within six months and 18 days of the issuance of the policy.
His father Shailendra Mishra filed a complaint with the Insurance Committee on July 27, 2018, alleging that he had not received the insurance claim amount after his son’s death.
According to general condition number 5 of the Foreign Employment Term Life Insurance Directive, “The risk will be protected even in the country for six months from the date of issuance of the policy.” After six months, if the insured is in the country without going to the destination country, the policy will be automatically canceled. In case of such cancellation, the insurance premium will be refunded proportionately if requested by the insured,” said The Insurance Company Reliable Nepal Life Insurance on August 12, 2018.
The committee, while justifying the claim of Insurer Reliable Nepal Life, had ruled that the insurance policy of the insured would be automatically canceled on the basis of the terms of the policy, so the liability of the insurer would not arise as per the demand of the petitioner.
