Kathmandu. KATHMANDU: Nepal Electricity Authority (NEA) is launching an integrated online portal to facilitate the recommendation of foreign currency payment for licensed insurance companies.
According to the reinsurance section of the authority, the REMIT model is going to be used from July 29 to apply for foreign currency recommendation and submit related processes.
In an emailed letter to the insurer, the reinsurance department said, “All insurance companies are requested to use the remit model to submit foreign currency recommendation applications and related processes from Monday, July 29, 2008. We are in the process of managing and providing login IDs for the Remit model to all insurance companies.
According to the authority, a login ID will be made available to the responsible employee of the reinsurance department of each insurer. In addition, the insurer will soon be informed about the necessary instructions regarding the process to be completed for registration of application and approval of payment including service charge in foreign currency and documents to be uploaded on the portal.
The recommendation of the Nepal Insurance Authority is mandatory for the insurance companies to pay the service charge in foreign currency to foreign reinsurers, reinsurance brokers, actuaries and educational institutions. The commercial bank pays such amount only on the recommendation of the authority.
The paperwork is as follows:
Currently, insurers have been applying to the authority for payment of foreign currency through paper process. For this, a written application should be submitted to the Authority along with the invoice provided by the concerned service provider, contract or memorandum of understanding with the concerned service provider, purpose of foreign currency payment, foreign currency to be paid, amount, name of the concerned branch of the bank involved in payment.
After proper examination of such an application, the Authority provides prior approval. After the pre-approval, the insurer should deposit the amount of tax deduction in advance to the account of the Inland Revenue Office and submit an application to the commercial bank for payment of foreign currency along with the evidence of the same. After the commercial bank has paid the amount, the insurer has to inform the Insurance Authority within seven days along with proof of tax payment.
