Kathmandu. The Nepal Insurance Authority (NIA) is all set to fully implement the provision regarding the mandatory national identity card for life insurance. Although the Authority had directed the insurers to implement it from January 2081, the insurers had only partially implemented it saying that it was not possible to implement it due to practical difficulties.
With the government making the national identity card mandatory for the services and opening of accounts of banks and financial institutions, the pressure to implement it has increased for the insurance sector as well. The authority had issued a circular on June 28, 2081 directing the insurers to include the details of the national identity card of the insured for all types of insurance transactions to be effective from January 15, 2081.
According to the insurers, it is not practical to implement the mandatory national identity card as the number of insured is very small compared to the account holder customers and the nature of the two services is different. The actual population covered under the protection of insurance in the country is relatively small. In such a situation, the strategy of the regulator should be to include it within the scope of insurance in the beginning.
The insurer argues that once the insurance is within the ambit of insurance, it is appropriate to ask for the necessary documents from the insured only at the stage of payment of the insurance claim. According to them, it will be easier for the insurance business if the insurer can inform the insured or proposer about the documents to be submitted at the time of purchase of the insurance policy and give prior notice to submit the documents before the time of payment of mature claim, advance payment claim or survival benefit claim.
TAG_OPEN_a_20 National Identity Card mandatory in all types of insurance transactions, insurers directed to take necessary actions immediately – Insurance Khabar
A CEO said, “Customers go to the bank branch looking for service. This is not the case in life insurance. Our representatives have to go door to door asking for insurance. ’
TAG_OPEN_a_19 Nepali citizens in foreign employment are affected by the use of national identity card – Insurance Khabar
According to sources associated with the Insurance Authority, a policy decision is being prepared regarding the mandatory national identity card. The authority officials say that it is necessary for the provisions related to the prevention of money laundering and also for the actual identity of the insured.
Nepali citizens abroad for foreign employment should be deprived of the security benefits of life insurance in the absence of a national identity card. Nepali citizens living abroad but have not been able to obtain a national identity card number have been deprived of insurance and other services due to lack of easy access to the national identity card. Apart from this, they are also deprived of the opportunity to deposit bank savings and remittances in their own accounts and invest in share trading in Nepal.
