Kathmandu. The Nepal Insurance Authority (NIA) has decided to impose regulatory restrictions on agents and insurers who have been cheating while making payment for life insurance or non-life insurance claims. Issuing an 18-point collective directive issued on March 12, the NRA has directed to pay the amount of partial and mature insurance claim immediately so that it can be deposited in the insured’s account.
The NRA has directed that not only the amount for partial and mature claim payment but also the entire amount for death claim payment should be compulsorily deposited in the bank account of the insured. The NRA has also said that serious attention has been drawn to the issue as there have been complaints that the employees of the insurance company are misbehaving without paying the insured in full payment even the amount of insurance loan issued in the name of the insured.
According to the NRA, action will be taken against all those involved in scattering all the money without depositing it in the bank account of the insured, i.e. collecting comments, preparing vouchers or transferring them online after preparing the payment warrant at the time of payment of the claim amount to the insured.
During the on-site inspection team of the Insurance Authority, during the on-site inspection at Nepal Life Insurance, it found ample evidence that the insured was adjusted in the insurance premium of the new insurance policy without paying the full amount of partial and mature claims, and used it to repay the loan of another insurance policy. NeA has immediately warned the management of Nepal Life in writing about this issue and warned of action as per the Insurance Act 2079 BS.
“The entire amount of the claim must have been deposited in the bank account of the owner in case the insured or the insured is not alive,” said an official of the law branch of the AUTHORITY, “If it is found that some amount of the claim has been deposited in the bank account, some amount in cash and the remaining amount in the insurance policy, then action will be taken against the concerned employees.” ‘
According to the NRA, there have been widespread complaints that the insured’s money is being misused by the agents and employees of the insurance company. “Misappropriating the amount that the insured is entitled to is a serious financial offence,” said the insurance authority official. ‘
After signing the discharge voucher, the insured has the legal right to claim additional amount at any time in case the entire amount of the claim has not been received in the bank account. According to the NRA, after this, the employees of the insurance company, who partially pay the amount for adjusting the claim amount in the payment of insurance loan or insurance on the basis of the written application of the insured, will not be exempted from legal action.
There is a provision of fine up to Rs 5 million or imprisonment up to 10 years or both for violating the insurance act and violating the directives of the Authority.
