13 things every life insurance policyholder in Nepal should know
Twelve of these are binding on every insurer and agent, and each card names the law or clause it comes from. One — how quickly your policy bond arrives — is ordinary practice rather than a rule, and says so. They are rarely spelled out, so few policyholders know them.
Your legal rights as a policyholder
All rights below are sourced from Nepal's Insurance Act 2079, Insurance Regulation 2081, or NIA directives. Sources are cited on each card.
A claim cannot be reopened after one year
Once a year has passed from the policy’s issue — or from its revival — your insurer cannot deny a claim on the grounds that something was left out or misstated in the proposal form. Policy exclusions still apply, and proven bad-faith concealment remains actionable at any time. This is the provision that stops an insurer combing an old proposal for a reason to refuse.
Receive your policy bond — the contract itself
Your insurer should deliver the signed policy bond — the legal contract — promptly after your first premiumThe regular payment you make to keep your insurance policy active. Full definition → payment; around a month is the usual wait. If it has not arrived, write to the head office requesting delivery and keep a dated copy of that letter. It is the document NIA will ask for.
Claim settlement within 7 days
Insurers must settle any valid death or maturity claim within 7 days of receiving all required documents, and give written reasons within 7 days if they decline. Delays beyond this are grounds for a formal NIA complaint. (The often-quoted "30 days" is a myth — it is the quarterly reporting cycle, not the settlement deadline.)
Know the commission your agent earns
You have the right to ask your insurer — in writing — for a breakdown of agent commission paid on your policy. This disclosure is not automatic, but it must be provided on request. First-year commission is capped at up to 25% on long-term savings plans (endowment and whole life) and up to 10% on term plans.
Correct errors in your policy bond — free
If your policy bond contains factual errors — name spelling, date of birth, nomineeThe person who receives the insurance payout when you die. Full definition → details — you are entitled to a corrected endorsement at no charge, provided the error originated with the insurer or agent. Submit the correction request in writing with supporting ID.
Change your nominee at any time
You can change the nominee named in your policy at any point during the policy term — including after marriage, divorce, or the death of a nominee. Submit a written change-of-nominee form to your branch. There is no charge for this.
A receipt for every premium payment
Every premium payment — annual, half-yearly, or quarterly — must be receipted in writing or electronically. Keep all receipts. They are your primary proof of payment in any dispute or claim. If your insurer does not provide one, demand it.
The grace period your policy states — check the schedule
Miss a due date and your policy stays in force through its grace periodThe extra time after a missed premium where your policy stays active without penalty. Full definition →. NIA fixes no universal day count: lapse is defined by the period your policy document names. Around 30 days is common in Nepali schedules, but that is market practice, not regulation. While the policy is in force during that window, a claim is not deniable merely because the premium was overdue.
Borrow against your policy after 3 years
For most savings-type policies (endowment, whole life, money back), you can take a policy loan of up to 90% of the current surrender valueThe amount you get back if you cancel your policy early. Full definition → after 3 completed years of premiums. This is your money. Interest rates are set by your insurer and disclosed in the policy bond.
A surrender value statement within 7 days
After paying premiums for 3 consecutive years, you are entitled to a surrender value if you cancel the policy. Your insurer must provide a written surrender statement — showing the exact amount you will receive — within 7 days of your written request.
Revive a lapsed policy — any time within the term
There is no 2-year or 5-year cut-off. Your insurer must revive a lapsed policy at any time within the policy term (जुनसुकै समयमा), once you show proof of insurability and pay the arrears plus the late fee. Insurers may run board-approved late-fee waiver schemes — one partial or full waiver per policy term.
Your policy does not vanish if you stop paying after two years
If you have paid two full years of premiums and then stop, your policy does not simply end. It converts automatically to a paid-up policy (चुक्ता बीमालेख) at a reduced sum assuredThe coverage amount your family receives on death — or you receive at maturity. Full definition → — still payable at maturity, or to your nominee on a death claim. This happens on its own; you do not have to ask for it. Paid-up is not the same as surrender: paid-up keeps the policy alive at lower cover, while surrender ends it for cash, and a policy has no surrender value at all before three full years. Ask your insurer: «मेरो policy को paid-up value कति हो?»
File a complaint with NIA — free, enforceable
You can lodge a formal complaint with the Nepal Insurance Authority against any insurer for delayed claims, mis-selling, unlicensed agents, or policy disputes. Complaints are free to file. NIA has legal authority to investigate, penalise, and order insurers to pay.
The process your rights protect
How a death claim is settled
Submit the claim
The nominee lodges the claim at the insurer's branch with the death certificate, the policy bond, nominee ID, and the completed claim form.
Insurer reviews it
By law (Insurance Regulation 2081) the insurer must settle the claim — or give written reasons for declining — within 7 days of receiving complete documents.
Nominee is paid
The full sum assured is paid to your nominee, income-tax free. This is the moment the policy exists for.
Denied, or delayed past 7 days? You can file a free complaint with the Nepal Insurance Authority — it has legal power to investigate and order the insurer to pay.
How to file a complaint with NIA — step by step
- Write to your insurer's head office first Send a written complaint detailing the issue and keep a dated copy — it is what NIA will ask you for. Give the insurer a reasonable window to reply in writing before escalating. This is a required step before NIA will accept your complaint.
- If unresolved in 15 days, file with NIA Visit NIA headquarters in Kupondole, Lalitpur-10 (the regulator relocated from Durbar Marg). Bring: your written complaint copy, the insurer's response (or proof of no response), and your policy bond. Current contact details at nia.gov.np.
- NIA opens a formal investigation NIA notifies the insurer and requests their response. Most cases are resolved within 30–60 days. NIA will contact you if they need additional information.
- NIA issues a binding order If NIA finds in your favour, it can order the insurer to pay, plus impose a penalty. Insurers are legally obligated to comply. If the insurer still does not pay, NIA can escalate to the courts.
Compare plans from all 14 licensed insurers
Claim ratios, premiums, and IRR — published from official regulatory filings.