Nepal Insurance Authority Directs All Insurance Payments to Be Made Electronically from Magh 1

Kathmandu – The Nepal Insurance Authority has directed all insurance companies to arrange for all types of payments to be made compulsorily through electronic systems starting from Magh 1.

The authority has instructed life insurance, non-life insurance, microinsurance, reinsurance companies, and insurance brokers to ensure that all payments are made through electronic systems directly into the bank accounts of the concerned individuals or institutions.

According to the Anti-Money Laundering Directive, 2082, insurers are required to make claim payments under insurance policies directly into the bank or financial institution accounts of the rightful recipients, in accordance with the terms of the policy or prevailing laws.

The authority issued this directive in the context of the Government of Nepal implementing a system whereby all payments from public bodies must be made digitally through banking channels. 

Previously, the authority had instructed insurance companies to make mandatory payments of salaries, wages, or any other type of remuneration to their permanent, temporary, contractual, or daily-wage employees and workers through banks or financial institutions.