Kathmandu: Nepal Insurance Authority has issued Micro-insurance Policy Directives 2079 to regulate the business scope of the proposed micro-insurance companies. The Directives have fixed the upper limit of the sum assured for the microinsurance companies.
According to Clause 20 of the Directives, micro-insurance companies licensed for non-life business, the sum assured of a single policy can not exceed NPR 5 million. A policy covering the risk of up to NPR 5 million can be issued for housing and property of the micro industry. Similarly, the maximum risk coverage under engineering insurance to has been fixed to NPR 5 million for the non-life micro insurers. Liability and financial loss insurance and other micro insurance may carry a maximum sum assured of NPR 0.5 million.
Furthermore, the micro-insurer licensed for life insurance can issue a policy with a sum assured maximum of NPR 0.5. million.
The Directives have also paved the way for micro-insurers to sell their products through digital payment gateway, telecom service providers, restaurants,s and other institutions associated with the distribution channels.
The claims under micro-insurance must be settled within 21 days after the submission of the claim documents by the policyholder or beneficiary.
