The Nepal Insurance Authority (NIA) has asked the insurers to issue micro life-insurance policies of up to Rs 500,000.
Enforcing the Microfinance Directive 2023, the NIA has maintained the provisions targeting the low income people. Similarly, the sector’s regulator has fixed the limit of the micro insurance in the non-life segment at Rs 5 million.
Four months ago, the NIA permitted seven micro insurers to carry out their businesses. Of them, two micro insurance companies including Guardian Micro Life Insurance and Nepal Micro Insurance have received final approval, while the remaining five are in the process of getting approval.
The NIA has fixed the minimum capital of Rs 750 million to operate micro insurance business. The micro insurers can sell the micro life-insurance policies with maturity of at least one year, while in the non-life segment, the policies can be issued for one year or less.
The NIA has asked the micro insurers to settle related claims within 21 days.
Meanwhile, the NIA has asked the life insurers to implement their new products within six months from the date of taking approval. While preparing the products-specific policy, the insurers should make detailed business plans that must involve the market research report, cost-benefit analysis and a three-year financial projections.
