Kathmandu: The Insurance Board(IB) has scrapped the mandatory provision for sales of Foreign Employment Insurance(FEI) policy through One-window mechanism. Now, every life insurers can independently sale the FEI Insurance Policy through online platform.
The Board has taken the move amid the long pending disputes among the life insurers on the distribution of insurance premiums income from the sales of FEI. The Jiwan Bimak Sangh Nepal, apex body of life insurers, had formally requested the Board to scrap the provision for one window system for FEI. The new provision will be effective from 1 Sawan 2079 onwards. The one-window system was introduced from Magh 2075.
The dispute was arose after Sun Nepal Life Insurance, one of the member of FEI Pool, denied to share the insurance premium income as per the collective agreement among life insurers. The actuarial assessment was delayed this year as the Pool Manager, Sun Nepal Life reluctant to distribute the insurance premium to other insurers.
The Insurance Pool to share the risk of FEI will continue to exists. Any claim received under FEI will be settled through the pool as previous arrangement.
Raju Maran Poudel, executive director of the Board, said that the move has been taken to address the issue of delayed actuarial valuation due to delayed sharing of premiums income from FEI. Now life insurers must issue the insurance policy through online platform only. Poudel informed that the service fee of this insurance policy will not be higher than any other insurance policies.
All life insurers have to get pre approval from the Insurance Board before issuing FEI policy for the first time.