Kathmandu. KATHMANDU: Nepal Insurance Authority (NEA) has directed life insurance companies and micro life insurance companies not to compel their customers to buy new policies while paying their claims.

According to the authority, the directive was issued after receiving complaints that some insurance companies were pressuring the insured to buy new insurance policies while paying the claims related to foreign employment.

NEA has issued clear instructions not to link the claim payment process and the issues of purchasing new insurance policies with each other and said the insured should not be forced to purchase new insurance policies under any kind of influence, pressure or temptation in course of claim payment.

The notice issued by Assistant Director Sudip Giri warned of taking action against the insurance company as per the Insurance Act, 2079 if anyone is found compelled to purchase insurance policies while paying the claim or exerting undue pressure.

The NEA has also directed all licensed life insurance and micro life insurance companies to make the claim payment process transparent, impartial and customer friendly.