Death Registration Not Required for Insurance Claims of Missing Rasuwa Flood Victims as Regulator Issues Eight-Point Directive
Kathmandu — The Nepal Insurance Authority has eased the insurance claim settlement process for life insurance policyholders affected by the devastating floods that occurred on August 26, providing relief to affected families. The Authority has directed life insurance and micro-life insurance companies to facilitate the required documentation and procedures for payments related to death claims, policy surrender, loans against insurance policies and maturity benefits.
Under the directive, affected policyholders and their legal heirs in areas hit by floods in the Lhende Khola, Bhotekoshi, Trishuli and Narayani river systems will be able to access insurance benefits through simplified procedures. The Authority said the arrangements were introduced in view of circumstances in which documents may have been destroyed or lost in the disaster, or policyholders and their families may face difficulties completing the required procedures.
According to the directive, applicants seeking death claim payments for policyholders who died in the floods only need to state the insured person’s name, date and cause of death, policy number and their relationship with the claimant in the application. They must also submit documents establishing their relationship with the insured person and an identity document issued by a government authority confirming the claimant’s identity. Acceptable identity documents include a citizenship certificate, national identity card, driving license, passport or land ownership certificate.
The directive allows companies to accept verified details or recommendation letters issued by an authorized agency or official as evidence that a policyholder died or went missing in the floods. Such documents must clearly state that the person died or went missing as a result of the flood or disaster. Where necessary, a judicial declaration of death may also be accepted as evidence.
If the original insurance policy document was destroyed or is unavailable because of the floods, the claim process may proceed on the basis of a copy of the policy maintained in the insurance company’s records. If a policyholder requests a copy of the policy, the concerned insurance company must provide it free of charge. The Authority has also directed insurers to protect policyholders’ interests if policy-related documents, including policy dockets issued by the companies, have been destroyed. Policyholders and insurance agents must assist the companies in obtaining the relevant details and updating their records.
Policyholders who are unable to pay regular insurance premiums or instalments on loans against their policies because of the floods will also receive relief. In such cases, insurance companies must provide a grace period of up to six months without charging interest for that period.
The directive also allows the legal heirs of policyholders who went missing in the floods to receive death claim payments. However, insurers must obtain a self-declaration from the heirs undertaking to accept any action prescribed by prevailing law if the missing policyholder is subsequently established to be alive. Claims may be paid only after such a declaration has been obtained.