Why are Corona Insurance claim payments slow and stringent?
Nepal Insurers Association has issued a notice to inform and update the general public about the coronavirus insurance.
The association has stated that the coronavirus insurance was introduced more as a relief initiative to the general public that with a profit motive. While the insurance policy previously pledged to pay an amount of Rs. 1 lakh upfront on proof of coronavirus infection, the policy has now changed its provisions. It is a common international practice to change the clauses of an insurance policy in response to the change in risk scenario.
Thus, studying the increasing risk and frequency of coronavirus infection in the country, the policy will only provide Rs. 25,000 upfront on infection and the rest will be covered only for actual medical expenses. This new update is effective for those who have subscribed to the insurance policy after Bhadra 28.
Furthermore, the association has requested the general public to claim for the payment only if they are genuinely affected by the virus. Since the insurance payment is partly funded by the Nepalese government, the association states that fraudulent claims are a misutilization of tax paid by the public itself.
For this reason, the policy has become more stringent in terms of the documents required, like the proof of home isolation from the local government, medical bills, etc.
Also, since this new layer of verification takes time, and many insurance companies' operations are affected by the pandemic, Nepal Insurers Association has apologized for the delay in payment after a claim. Nevertheless, the association ensures that the insurance companies are working diligently to speed up the process.
