Kathmandu. The Insurance Authority of Nepal (NIA) has been clarifying the universally accepted principles and legal dignity of insurance by making important decisions in the disputes of insurance claims in recent times. Three recent decisions of different nature have sent a serious message to the insured, insurer and stakeholders about the technical aspects of insurance.
1. Claim can be made even in case of murder: } The verdict of the case related to IME Life against Suman Kumari Chauhan has given a great relief to the dependent family in case of murder of the insured. If the person involved in the murder is not found and he or she is not made a defendant in the case, the claim should be paid without waiting for the final verdict of the case.
2. Definition of Third Party and Death of Employee: The judgment in the case of Nepal Insurance Company vs. Jwala Nirman Service has clarified the liability for human damage caused by the accident of construction equipment excavator. If the employee is out of the machine at the time of the accident and dies due to the collision of the machine, then he should be treated as a third party. The facilities provided by the Motor Vehicles Act and Insurance Guidelines cannot be deducted by any point of the policy.
3 TAG_OPEN_span_19. No claim without payment of TAG_CLOSE_span_19 insurance premium: In the case of National Life against Mount Kanchan International, the Authority has cautioned the insured and manpower companies about the negligence in the insurance process.
The risk is not considered to be protected until the premium is received. Also, if only a third person (manpower company) other than the heir makes a claim, the insurable benefit is not enough. Unless you have an official receipt of payment and an insurance policy in hand, you are not considered insured. It’s risky to rely solely on agents.
Key aspects that the insured should pay attention to
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These decisions of the Insurance Authority have set 3 precedents for the insurance market in Nepal.
While insuring, keep a bank voucher or official receipt of the premium. Insurance without a policy number can only be a piece of paper. Only the desired person or heir can proceed with the claim process legally.
In the case of a vehicle or machinery, third party insurance is a mandatory liability. In which the company is not able to escape by making various excuses.
The Insurance Authority has encouraged the insurer to be responsible and the insured to be aware through these decisions. Insurance companies need to give equal priority to both human and legal aspects in the time of claims, not just to collect premiums.
