Insurance Board stands against money laundering; Premium more than Rs 1 lakh and claim more than Rs 3 lakh to be paid through cheque

Insurance Board of Nepal has taken its step towards the cashless transaction for the development of cashless system and better supervision on the issue of money laundering as well.

As per the new directive published by the board, the insurance premium worth more than Rs 1 lakh and claim of more than Rs 3 lakh must be paid compulsorily through cheque. For amount below the threshold, cash transaction has still been made available.

Similarly, all the insurance companies must keep a Point of Sales (POS) machine so that the customers can make their premium payment through their Debit/Credit cards.

The board has also directed the insurance companies to restrict the advance premium payment below 15% of its total transactions.

The board has been taking serious measures to control money laundering in the insurance business. For this, the insurance companies have to send the quarterly report of its transactions to the board. Along with it, the insurance companies also have to send details about all the transactions above Rs 10 lakhs.