Insurance Authority Issues 8-Point Directive to Life Insurers for Simplified Flood Claim Settlements
The Nepal Insurance Authority has issued an 8-point directive to all life and micro-life insurers to ensure smooth and simplified insurance claim payouts for flood victims. This decision is expected to provide significant relief to policyholders and beneficiaries affected by the August 26 (Bhadra 10) floods regarding death claims, policy surrenders, loans, and maturity payouts.
KATHMANDU — The Nepal Insurance Authority has issued a special circular containing an eight-point directive to all life insurers and micro-life insurers to provide swift and simplified claim payouts to policyholders affected by recent natural disasters.
According to the authority, this decision was taken keeping in mind the welfare of policyholders and their beneficiaries impacted by the severe flooding in the Lhende-Khola-Bhote Koshi-Trishuli-Narayani river system on August 26 (Bhadra 10). Insurance companies have been strictly instructed to streamline administrative procedures, verification proofs, and documentation required during this disaster situation.
Under the circular issued by the regulator, insurance companies must apply simplified processes across the following services:
- Death Claims: Facilitating hassle-free claim payouts to legal heirs of policyholders who lost their lives due to the floods.
- Policy Surrender: Simplifying paperwork for policyholders seeking policy surrenders during this crisis.
- Policy Loans: Enabling quick loan disbursements to policyholders requiring immediate financial liquidity.
- Maturity Payouts: Ensuring seamless transfer of funds for matured insurance policies without unnecessary delays.
The regulator believes this measure will play a crucial role in providing timely financial assistance to citizens in flood-affected regions while bolstering trust in the insurance sector.