Concerns of the Authority regarding the business of insurance companies and suspicious payments, 13-point instructions issued

Kathmandu: Regulatory body Nepal Insurance Authority has shown its interest in the business of insurance companies and their suspicious payments.

Nepal Insurance Authority issued a circular and gave this information to the insurance companies. The authority is going to conduct special monitoring on single life insurance fee collection, policy surrender and required details.

Similarly, with the increase in payment of false insurance claims in non-life insurance companies with wrong intentions, the authority made decision to keep them under surveillance. The authority has shown special interest in taking single insurance fee payment and surrendering it after a certain time.

According to the authority, if we look at the basis of a single insurance fee, the insurer must take the fingerprints of the insured and the proposer when confirming the identity of the customer and any person other than the insured. Similarly, if the agent comes to the office in Nepal in the name of the insured to deposit the insurance fee or other cash amount of more than 100 thousand rupees then there is a provision to obtain details of the person’s name, surname, contact number or address and the relationship with the customer. The authority has said that this decision has been taken to ensure that no such policies are sold through the company, even though the regulator is strict.

The Authority has given 13 points of instructions asking both Non- life and life insurance to be aware of this issue.

The Insurance Authority has also instructed the financial information unit to submit details of suspicious transactions in the prescribed format to the financial information unit if any suspicious activity is observed in relation to the customer, transaction or property or if the customer attempts to do suspicious activity.