Kathmandu. The Nepal Insurance Authority (NEA) has warned that it will take action against the life insurance companies if they are troubled by the condition of paying the claim of life insurance. Issuing a joint circular in the name of all types of life insurers on Friday, the authority warned of action as per the Insurance Act, 2079.
The NRA issued such warning after complaints were received that the life insurer had been intimidating and exerting undue pressure on the family members of the workers who died in foreign employment saying that they would not get the payment until the next life insurance was not insured.
The notice issued by the Insurance Section of the Authority in the name of life insurer reads, “As it is the contractual obligation of the insurer to pay the claim, if the insurer is found fixing terms with the sale of another insurance policy or exerting undue pressure for another insurance policy at the time of claim payment, action will be taken as per the directive.” ‘
Such a warning was not given by the authority spontaneously. The authority took the initiative only after Minister for Labour and Employment Ramji Yadav reprimanded the responsible officer of the Insurance Authority. Like the previous time, this time too, the NRA officials had clarified, “If anyone complains to us, take action!” The reason why the complaints have not reached the Authority despite the high number of victims is that the NRA has not paid attention to public awareness and the lack of access mechanism between the victims and the NRA.
Actions to be taken by the Authority to prevent bullying:
The insurance authority should use the facility that the victim or the insured can inform the authority through a short SMS code. And it will be easier to stop fraud. Just as the mobile service provider provides the facility of USSD code to purchase various mobile packages, the authority should also use the facility to register a complaint by selecting only the name of the insurance number and the insurer in an accurate and hassle-free manner. As soon as the initial information is received from the insured, it will be effective if the process of initiating action on the complaint of collecting details by contacting the Insured Service Center of the Authority will be effective.
Earlier also the Authority had given instructions:
Earlier, on December 22, 2081, the Property Purification Section of the Insurance Authority had filed a case No. 547 Ch. No. Through a letter dated 2963, the life insurer was instructed not to exert undue pressure, but the insurer did not hesitate. He continued to put pressure on the insured or his heir. The Ministry of Labour, Employment and Social Security had written to the NRA on November 11, 2081 objecting to the victims’ family members while claiming the insurance for foreign employment.
After drawing the attention of the Authority, the Regulation and Money Laundering Section of the Authority was compelled to issue a directive not to adjust the amount by issuing other insurance policies without depositing the amount to be paid to the insured or the insured as per the law. At that time, there is still a tendency to make the heir issue a cheque in the name of the insurer before the death claim amount is paid and then transfer the amount from the bank to the insurance company’s account after paying the claim amount.
In a letter issued in Poush 2081, NEA had directed not to exert undue pressure for new insurance in course of claim payment and to make the payment directly in the bank account of the concerned person through digital means. The directive was issued by NRA Chairman Madan Dahal. Since he came from a background as the Director General of the Department of Foreign Employment, he was aware of the bullying of life insurance.
Will insurers improve for fear of action?
The authority did not warn of action in the directive issued for the first time. However, in the circular issued this time, the authority has warned of action as per the Insurance Act, 2079. This warning of the authority has increased the possibility of the insurer ignoring the directive of the authority this time.
