Nepal Insurance Authority Issues Monetary Loss Insurance Guidelines

Kathmandu – The Nepal Insurance Authority has introduced new monetary loss insurance guidelines to regulate the protection of cash, cash-related equipment, and security measures within financial institutions and during transportation. The directive aims to ensure comprehensive risk coverage for banks, financial institutions, and other cash-handling organizations.

Issued under Section 166 of the Insurance Act, 2079, the guidelines establish that insurance policies issued under this directive constitute a binding contract between the insurer and the insured. Insurers are required to notify policyholders at least 15 days before the policy’s expiration. The insurance contract includes the policy document, endorsements, proposal forms, and schedules.

As per the directive, insured entities must submit specific proposal forms: Schedule (1) for banker indemnity insurance, Schedule (2) for cash insurance, and Schedule (3) for fidelity surety insurance. Insurers are mandated to verify all necessary details before issuing policies, ensuring proper risk assessment and policy management.