Kathmandu. It is time for the insured who have availed the loan facility against the collateral of life insurance policies to pay regular interest on the loan. Since the interest amount for the current fiscal year 2081.82 will be capitalized after mid-Ashar, the insured can reduce the burden of expenses by paying the interest by mid-Ashar.
The insured must repay the interest amount within 6-6 months on the loan provided by the life insurance company. In this way, in the event of non-repayment of the interest amount, the life insurance company will also add the interest amount to the principal, so the principal amount increases even more.
The insured is not properly informed about the mandatory payment of interest on the loan within 6-6 months at the time of taking a life insurance policy loan. Also, unlike banks, insurance companies do not regularly send SMS and e-mails to the insured to pay the interest on the loan. Despite having the ability to pay the interest, the insured is unable to pay the interest regularly because they do not remember the interest amount and their own insurance policy number. In this way, as the interest amount is capitalized, the insurance policy itself is confiscated at some point. Most of the insured are not even able to get prior information about this before the insurance policy is confiscated.
##The role of the association and regulator to prevent confiscation
##
##
The main reason for the confiscation of life insurance policies is insurance policy debt. The Life Insurance Association of Nepal or the Nepal Insurance Authority have facilitated arrangements to allow the insured to pay any amount through a digital wallet, which will help control the seizure of insurance policies.
Although digital payment channels have made it easier to pay interest and principal of loans, unnecessary obstacles have been created in this regard. Digital wallets do not accept payment of interest or principal of insurance policy loans until a minimum of Rs. 5,000 is paid. When the insured tries to pay less than Rs. 5,000 at a time from the wallet, the payment process does not proceed. And the insured later forgets to pay interest and the interest is capitalized again, adding to the burden.
For whom has the arrangement of paying a minimum of Rs. 5,000 for principal or interest of loans through a digital wallet been introduced? For the convenience of the insured, for the benefit of the insurer, or for the business of digital wallets?
