Kathmandu. Life insurance companies, which have returned to Nepali workers in foreign employment due to the prolonged economic recession in the country, are now forced to tighten underwriting due to the heightened tension in the Middle East and Gulf countries.
Life Insurance Company has started rejecting the life insurance offer of Nepali workers working in Iran, Israel, Dubai, Qatar, Oman, Abu Dhabi and UAE. Tehran’s air strikes on US military bases in the Gulf state have escalated as the United States and Israel have retaliated against Tehran. This situation has also had a major impact on the relationship between Nepali migrant workers and life insurance companies.
Life insurance companies in Nepal have recently started rejecting applications of overseas Nepali workers based on the provision of ‘risk like war or war’ while evaluating their insurance offers.
The exception provision of life insurance policy clearly states that the insurance cover does not apply to military conflict, war (declared or undeclared), insurgency or similar risks. For this reason, life insurance companies have started rejecting new applications from the Gulf and the Middle East or approving the same conditions.
“We take the decision by considering both the risk insurance premium and the coverage of the policy,” said the chief executive officer of a life insurance company. With the current tense environment, it is also going to be closed. If the war continues, foreign employment insurance will also come to a standstill. ’
Nepal Insurance Authority (NEA) has implemented a provision that does not require health check-up report for life insurance up to Rs 20 lakh.
Controversy is being raised as to how effective the Nepal government and regulatory bodies have been in policies and insurance guidelines to protect workers in war-torn areas. Should there be a special insurance structure for migrant workers? Can the risk of war be addressed in a clear but realistic way?
There is a need for a clear, transparent and fair policy on insurance policies, especially for workers working in vulnerable sectors. Which guarantees the security of both income and life.
This is a challenging time for Nepali workers. There is a huge imbalance between employment, remittances and life threats. As the insurance industry tightens its risk assessments, it is clear that policymakers need to devise a long-term strategy.
