All types of transactions related to insurance are to be done electronically from Magh 01 (January 15, 2026). The online payment has become mandatory after the Nepal Insurance Authority (NIA) issued a directive to use online means for transactions.
Online insurance payment removes the need to carry cash. Payments can be made on a mobile phone within a few taps, and it’s also secure, as payment details are recorded in the server of mobile banking apps and digital wallets, while they are also issued to the payment initiator.
This new rule complies with the ‘Directive on Prevention of Financial Investment in Money Laundering, Terrorist Activities and Production or Expansion of Weapons of Mass Destruction, 2082’ issued by the Authority. The directive mentions that companies must make a secure electronic payment system to collect insurance premiums.
All insurance transaction online
The compulsory online transaction applies to all the insurance-related firms, such as life insurance, non-life insurance, micro insurance, reinsurance, and insurance brokerage.
NIA’s circular states, “This circular has been issued as per the decision to make arrangements to make all types of payments from insurance companies or affiliated institutions directly to the bank account of the concerned person or institution through an electronic system from 1 Magh 2082.”
The circular means that insurance companies will have to implement an online payment facility. This will remove the use of checks and paper bills.
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The directive states that insurance companies must deposit the amount in the bank or financial institution account of the beneficiary. The authority believes that the electronic payment method will render transparency in the industry and reduce financial risks.