Kathmandu. The Insurance Identification (KYC) process is sensitive and important not only for the services provided to the insured but also for the prevention of money laundering.
Who is the insurer buying the insurance policy at the starting point of the expansion of formal relations between the insured and the insurance company? What is the insured’s background? KYC is the process of collecting detailed information.
Based on the sensitivity of the customer’s background, the insurer should complete the process from simple to intensive customer identification at the KYC stage. According to the details so collected, the details available in the KYC are used on an important basis when any investigation or dispute is resolved regarding the proposal, claim and payment of the policy while the policy is in place.
It is also important to disclose the full identity of the customer for the prevention of money laundering and to control terrorist financing. However, at the initial stage, the insurer is not interested in collecting details to clearly reveal the identity of the customer.
The AUTHORITY has directed to identify the customer in four ways, from general to intensive, based on the background of the proposer, the size of the sum assured, and the risk involved. The reality is just the opposite. The customer’s identification form does not mention the insured’s e-mail, bank account number and confirmed mobile or phone number.
During the on-site supervision of the insurer, the authority has found that inadequate details are included in both the insured identification form included in the insurance file or the insured identification entered in the software.
In life insurers older than 15 years, the size of the amount to be paid to unidentified insurers is more than billions. The life insurer, which has been in operation for 15 to 25 years, has not adequately mentioned the contact details of the insured, the details of the family members in the insurance proposal or the insured’s residence address, phone number has changed, but the insurer has not updated the information.
The Insurance Authority of Nepal can confiscate the remaining 20 years prior to the payment to the insured and spend it for the protection of the interest of the insured. If the insured has deposited the amount of the insurance installment due to suffering, but if the contact with the insured is lost, it is unfair to the insured if he does not get the amount at the time of receiving the claim payment. Such a situation is not in the interest of the life insurer.
Even in the proposal form, incomplete and incomplete information about the insured is collected. Agriculture is the source of income of most of the insured. No documentary evidence is included to confirm this. The insurance proposal does not even mention the details to confirm the identity of the person desired.
In the absence of mention of the details of the person wanted by the insured, it is mandatory to mention the details of the person who wants to be identified for the ease of identifying the claim holder for payment of the claim after the death of the insured. Most life insurance proposals do not mention the person desired.
