Sunday, August 31, 2025

NIA directs insurance companies to provide clear, timely information to clients

Kathmandu, Aug. 24

The Nepal Insurance Authority (NIA) has directed all insurance companies to provide timely and clearly understandable information, via electronic means or in writing, to the insured individuals regarding the loan amount provided against the insurance policy, the method of interest calculation, the loan repayment schedule, and the consequences of non-repayment.

This directive was issued in response to complaints that insurance companies have not been providing adequate information to the insured regarding the outstanding loan amounts and the method of interest calculation during loan recovery, the NIA said in a statement on Sunday.

As a result, deductions from the final maturity payments or claim amounts have caused difficulties for the insured and beneficiaries.

"Insurance companies must ensure that, when providing loans against insurance policies, the insured is mandatorily informed—through SMS, email, or letter—of the loan amount, the method of calculating interest, the repayment schedule, and the consequences of non-payment, in a manner that is clearly understandable, at least thirty (30) days before the end of the interest payment period," read the directive.

The NIA also reminded insurance companies that it is their duty to issue reminders or notices to draw the attention of the insured regarding the recovery of loans and interest.

Published in The Rising Nepal daily on 25 August 2025.

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