Kathmandu: Beema Samiti (BS) is about to issue ‘Life Insurance Policy Directives’ to maintain uniformity in practise among life insurance companies. Such directives is being brought after the companies have shown differences in preparing their own policies. Beema Samiti has stated that this directive will also help in making the policies of the companies to international standards.
BS is the regulatory authority for the insurance companies.
The life insurance policy directive will mention the minimum criteria to be covered, the conditions, the applicable restrictive provisions, access, etc. Companies need to study the market when preparing insurance policies.
Similarly, the cost benefit analysis, risk identification, assessment and mitigation plan, insurance marketing plan will have to be prepared. BS has also stated that the companies will have to make a three-year financial projection.
An official of BS informed that such guidance will help in preparing an insurance policy suitable for Nepal’s environment. The regulator is going to mention the provision of not being allowed to surrender the policy till the completion of 2 years from the date of policy issue. Similarly, the provision of surrender value after the completion of 3 years from the date of commencement too will be included in the directives. It will also help in calculating the surrender value.
It has been stated that in the case of revival of personal insurance policy, the provision of taking interest and giving interest discount will also be addressed. It is not allowed to use ambiguous terms mentioned in the policy while advertising the insurance policy. The company will have to post all the details of the policy on its website.
The regulator is in discussion with the insurance companies about the proposed directives. The draft of the directives has been provided to the life insurance companies. The regulator is in preparation to issue the directives from 16 July 2021.