Insurance Board Warns All Insurers To Strictly Follow Underwriting Guidelines

Kathmandu: The Insurance Board, the regulatory body of the insurance industry, has drawn serious attention to the fact that insurance companies are issuing insurance policies on the basis of fake documents. During the investigation, the Board concluded that the insurance companies bear the risk on the basis of fake documents and even pay claims on the basis of fake documents.

The Board has warned all the insurance companies through a circular to abide by the prevailing laws and underwriting directives while accepting risk and making claim payment.

In the circular signed by Shambraj Lamichhane, the deputy director of the law department of the Board, it has been instructed to fully follow the prevailing laws and the instructions issued by the Insurance Board regarding insurance risk assessment and claim payment. In addition, it has also been instructed to post mandatory notices in all offices of the insurance companies for public information in this regard.

After the murder of a 21-year-old young Surgeon Bik in Kohalpur, Banke, for a life insurance policy worth Rs.2.5 crore, it was revealed that the life insurance policy was issued based on the fake documents.

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