Kathmandu,
June 23: The government has again intervened in the foreign employment
insurance system and barred the life insurance companies from distributing agents’
commission.
Issuing directives to nine life
insurance companies on Thursday, the Insurance Board (IB) asked them to issue
foreign insurance term insurance policies according to the new rule effective from
July 16th.
As per the provision in the
Insurance Regulation, 1993, the insurance regulator can prevent any insurer of
non-life insurance from providing commission to its agents.
According to the Board chairman Prof.
Dr. Fatta Bahadur KC, the foreign employment term insurance was actually a
non-life insurance which was being implemented by the life-insurance companies
in Nepal.
Earlier, the Board had fixed
different premium rates on the basis of insurance policy tenure and age of
applicants in 2011.
Foreign employment insurance
policy was introduced in 2007 following the implementation of new Foreign
Employment Act which had a provision that the people leaving the country for
employment should be insured mandatorily.
Currently such policies provide
coverage of up to Rs. 1 million in case of death and permanent or partial
disability.
According to the new provision,
premium rate on foreign employment insurance policy has been fixed at Rs. 2,066
for one and a half years and Rs. 2,646 for two years for those who are 18 to 35
years of age.
The premium will be Rs. 2,900
for one and a half years and Rs. 3,625 for two years for people between age of
36 and 50 years.
In the same way, the IB has
fixed the premium rates for two and a half years to five and a half years for
different age groups.
Nine life insurance companies in
Nepal
– Rastriya Beema Sansthan, National Life, Nepal Life, Life Insurance, Metlife,
Asian Life, Surya Life, Gurans Life and Prime Life - are offering the foreign
employment insurance.
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