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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