Kathmandu. Life insurance companies, which have been delaying payment of Maturity Benefits and Survival Benefits for a long time due to unawareness of the Life Assured will no longer be allowed to make excuses to delay the claim payment.
The Insurance Board(IB), insurance sector’s regulatory authority of Nepal, is preparing to execute a provision that life insurance companies should immediately deposit the amount of Survival Benefits and Maturity Benefits in the bank account of the life assured or beneficiary.
According to an official of the IB, the policy is to discourage the tendency of holding maturity claim and survival benefits for long on the pretext that the insured is no longer in contact with the insurer and it is difficult to release the claim without the authorized signature of the life assured or beneficiary.
The provision for discharge voucher against Maturity Benefits and Survival Benefits payment will be made flexible, the official said, The claim amount should be credited directly to the bank account of the Life Assured by updating the insured’s bank account through customer identification form.
The IB has shown interest after the large life insurers including Nepal Life Insurance were taking undue benefits by investing a large sum of outstanding maturity and survival benefits claims. The amount of outstanding claims to be paid by Nepal Life alone is more than Rs. 2 billion.