Kathmandu. The Nepal Insurance Authority (NEA) has come up with a stringent provision for life insurance policies with insurance cover of more than Rs 5 million.
The Insurance Authority has tightened the identification of large customers. The NRA has made provisions in this regard through the Directive on Prevention of Money Laundering, Terrorist Activities and Financial Investment in the Manufacture or Expansion of Weapons of Mass Destruction, 2082 BS.
According to the directive, the life insurer will now have to take various measures by issuing a single insurance payment policy or limited term payment policy or other insurance policy of similar nature or any insurance policy of savings and investment nature with more than Rs 5 million in the nature of savings and investment.
While issuing an insurance policy of more than that sum assured, the life insurer has to include documents and details confirming the financial capacity of the insured. The insurer will also have to ask the insured for documents confirming the profession and business of the insured.
Similarly, issuing such insurance policy, the insurer will have to make arrangements to pay the insurance fee only from the bank and financial institution’s account. In the case of a single insured insured, the insurer will also have to disclose the reason for taking the policy.
Similarly, while issuing an insurance policy with a sum insured of more than Rs 5 million, the insurer will also have to adopt other measures to be adopted as per the risk.
