Nepal Insurance Authority Mandates Digital Payments Across Insurance Sector from Magh 1

Kathmandu – The Nepal Insurance Authority has directed all insurance-related institutions to conduct all types of payments exclusively through electronic banking systems starting from Magh 1.

In a directive issued on Monday, the Authority instructed life insurance companies, non-life insurance companies, microinsurance companies, reinsurance companies, and insurance brokers to ensure that payments are made directly to the bank accounts of the concerned individuals or organizations.

The move follows the implementation of the Anti-Money Laundering Directive, 2082, which mandates that insurance claims must be paid through bank or financial institution accounts in accordance with policy terms or prevailing laws. The Authority stated that the decision aligns with the Government of Nepal’s broader policy of routing all public-sector payments digitally through the banking system.

The directive also reinforces earlier instructions requiring insurance companies to disburse salaries, wages, and other payments to permanent, temporary, contract-based, or daily wage employees strictly through bank or financial institution accounts.