Kathmandu. Insurance companies will now have to take action if they do not pay the wages of employees and workers in their bank accounts.
Nepal Insurance Authority (NEA) has issued a circular to life, non-life, micro life and reinsurance companies, directing them to compulsorily pay the remuneration of employees and workers in their bank accounts.
As per the provision, the insurer has to pay the remuneration and wages of the employees and workers in the bank account of the concerned employee. However, the authority has said that it has received complaints that some insurers are still making payments against this provision.
The NRA has directed the government to compulsorily pay the remuneration or wages given to permanent, temporary, contract or wage workers or any other type of employees and workers through their bank accounts. The authority has warned that action will be taken as per the law if the payment is found violating this directive.
According to sources, the authority is going to take strict action after it was found that the insurance companies were making payments in cash to hide the illegal expenses of micro insurance and foreign employment insurance.
Similarly, due to unhealthy competition among non-life insurers, the practice of returning a certain percentage of the insurance premium to the insured has been going on in the recent past. “The NRA may have become serious about this issue as well,” said a source, “That’s why it has directed to pay the salaries of employees and workers compulsorily through bank accounts.” ’
