Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Starting January 14 (Magh 1), the days of waiting for physical checks or dealing with cash in the insurance sector are officially coming to an end. The Nepal Insurance Authority (NIA) has issued a strict directive to all insurance players—life, non-life, micro-insurance, reinsurance, and even brokers—to move every single payment onto digital platforms.
From the mid-January deadline, all payouts (including claim settlements) must be deposited directly into the bank accounts of the individuals or organizations involved.
This move isn’t just about convenience; it’s a major step toward transparency. The NIA pointed to two main reasons for the shift:
Anti-Money Laundering: Under the new 2025 (2082 BS) guidelines, digitizing payments makes it much easier to track the flow of money and ensure payouts reach the rightful policyholders.
Government Policy: The Nepal government is already pushing for all public sector transactions to go digital, and the insurance industry is now following suit.
This follows a previous crackdown by the Authority where they ordered insurance companies to stop paying their staff in cash. Whether a worker is permanent, on contract, or a daily wage earner, their salary must already be sent via direct bank transfer.
Basically, the NIA is making it clear: if you’re in the insurance business in Nepal, the future is paperless.
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