Kathmandu. The Nepal Insurance Authority (NIA) has decided to provide relief to the insured affected by the devastating floods on August 26. The Authority has directed the life insurance companies to extend the period without interest for up to 6 months to the insured who are unable to pay the regular installment of insurance premium or insurance loan due to floods.

The NRA has also directed the government to ease the process of death claim, surrender, insurance loan, and maturity payment under life insurance keeping in mind the interest of the insured and histried beneficiaries affected by the floods.

According to the NRA, life insurance companies will have to extend the moratorium period of up to 6 months if they are unable to pay the regular installment of insurance premium or insurance loan due to floods. There will be no additional interest during this period.

Similarly, the flood-affected insured has been asked to simplify the evidence and documents required for making a death claim. For the death claim, the name of the insured, the date of death, the cause of death, the insurance number and the relationship with the claimant will have to be disclosed.

Documents proving the relationship between the insured and the claimant with the claim application and the identity card issued by the government agency that reveals the identity of the claimant will have to be submitted. For this, identity documents can be submitted such as citizenship, national identity card, driving license, passport or land ownership certificate.

If the insurance policy is not available, the claim process can be proceeded on the basis of the records of the insurance company. If the original insurance policy is not available, the copy in the company’s record can be recognized. If the insured asks for a copy of the insurance policy, the insurance company will have to provide it free of cost.

In order to prove the death due to flood or other calamity, a certified statement or recommendation letter can be submitted along with the statement of death due to flood or disaster issued by the competent authority or authority. Similarly, the claim process can be proceeded on the basis of the judicial declaration of death.

In case the insurance company has lost the secured insurance documents due to floods, the concerned insured and agent should provide the necessary details and help in updating the company’s records.

Similarly, the payment of the death claim of the insured who has disappeared due to floods has also been made easier. If the concerned heir is proved to be alive in the future, then the claim can be paid by self-declaration or a commitment letter accepting the action as per the prevailing law.

The Authority has directed the life insurance companies to make necessary facilitation in the claim and payment process so that the policyholders and beneficiaries affected by the disaster are not deprived of insurance services.