Kathmandu. The Nepal Insurance Authority (NIA) has made it easier for the flood-affected insured to get the payment of life insurance claims.

The NRA has decided to facilitate in the necessary documents and process to pay the insurance amount to the families of the insured people who died or disappeared due to floods.

The authority has directed all life insurance and micro life insurance companies to ensure that it is in the interest of the insured and their heirs affected by the floods in Bhotekoshi on August 26. The authority has also directed to simplify the process of payment of death claims, surrender of insurance policies, insurance loan and matured insurance amount.

According to the NRA’s directive, while demanding payment of insurance claim of the insured who died due to floods, the application should disclose the name of the insured, date of death, cause of death, insurance policy number and relationship with the claimant. The application has to submit documents proving the relationship between the insured and the claimant and a government identity card that reveals the identity of the claimant.

For this, citizenship certificate, national identity card, driving license, passport or land ownership certificate can be submitted. Similarly, a certified statement or recommendation letter issued by the competent authority or authority will be required to confirm the death or disappearance in the flood. Such a certificate should state the death due to flood or disaster. In case of a judicial declaration of death, it can also be considered as a basis.

Even if the original insurance policy is lost or destroyed due to floods, the insured family will not face any problem in the claim payment process. In case the original insurance policy is not available, the claim process can be proceeded on the basis of the copy in the records of the insurance company. If the insured asks for a copy of the insurance policy, the company will have to provide it free of cost.

Similarly, in case the policy documents of the insurance company are destroyed due to floods, the concerned insured and insurance agent will have to provide the necessary details and help the company to update the records. This will make it easier to continue the insurance service on the basis of the available records even if the physical documents are destroyed.

In order to provide relief to the insured who are in financial difficulties due to the floods, the NEA has also given concessions in the payment of insurance premiums and regular installments of insurance loans. Provisions have been made to extend the payment period for the insured who are unable to pay the regular installment of insurance premium or insurance loan for a maximum of 6 months.

Similarly, in the case of the insured who has disappeared due to floods, the family can also take the insurance claim payment. For this, the concerned heir will have to submit a self-declaration or a commitment letter accepting the action as per the prevailing law if the insured is proved to be alive in the future. After receiving such a commitment letter, the insurance company can pay the claim.